The Closing Entry for the Salaries Expense Account Would Include

question 86

Multiple Choice

The closing entry for the Salaries Expense account would include a debit to:

• A)Salaries Expense and a credit to Retained Earnings.
• B)Salaries Expense and a credit to Net Income.
• C)Retained Earnings and a credit to Salaries Expense.
• D)Net Income and a credit to Salaries Expense.

Recognize the relationship between business plans and executive decision-making, including bonuses and financing needs.

Grasp the process of developing business plans in various scales of companies and their review by corporate management.

Understand the importance of detail and comprehensiveness in business plans for conveying the company’s future.

Acknowledge the role and function of various planning documents such as budgets, strategic plans, and financial projections.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Inventory Cost Flow Assumption

An accounting assumption that determines how the cost of inventory is allocated to the cost of goods sold and ending inventory.

Cost of Goods Available

The total cost of goods that are available for sale during a certain period, including goods purchased or manufactured.

Periodic System of Inventory

An inventory system that updates inventory balances at the end of a certain period, involving periodic physical counts.