The Following Adjusting Journal Entry Found in the Journal Is

question 131

Multiple Choice

The following adjusting journal entry found in the journal is missing an explanation. Select the best explanation for the entry.

• A) Record payment of wages.
• B) Record wages paid last month.
• C) Record wages paid in advance.
• D) Record wages expense incurred and to be paid next month.

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Definitions:

Revenues

Income that a business receives from its normal business activities, usually from the sale of goods and services to customers.

Asset Account

An account that represents a resource owned or controlled by a company that is expected to provide future economic benefits.

Consumed

Used up or exhausted, particularly in reference to resources or goods.

Liability

A financial obligation or amount owed by a business to creditors, typically reflected on the balance sheet.