The Correct Adjusting Entry for Accrued and Unpaid Employee Salaries

question 68

Multiple Choice

The correct adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31 is:

• A)debit Salary Expense,$9,000;credit Cash,$9,000
• B)debit Salary Expense,$9,000;credit Fees Earned,$9,000
• C)debit Salary Expense,$9,000;credit Prepaid Salary,$9,000
• D)debit Salary Expense,$9,000;credit Salaries Payable,$9,000
• E)debit Salaries Payable,$9,000;credit Salary Expense $9,000

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Definitions:

Profit of Shareholders

The portion of a company's profits that is allocated to stockholders, often seen as a primary goal of businesses to maximize shareholder value.

Shareholder Orientation

A business approach that prioritizes the interests and value maximization for shareholders, often guiding strategic and operational decisions.

Welfare of Society

The overall health, happiness, and well-being of a community or civilization, often considered in economic and social policies.

Collusion

An agreement between parties, often secretly, to limit open competition by deceiving or defrauding others of their legal rights, or to obtain an objective forbidden by law typically by defrauding or gaining an unfair market advantage.