The Adjusting Entry to Recognize Unpaid Salaries Increases Net Income

question 173

True/False

The adjusting entry to recognize unpaid salaries increases net income and increases liabilities.

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Definitions:

Hourly Wage

The amount of money paid to an employee for one hour of work.

Leisure

Time free from work or duties, which can be used for relaxation, hobbies, or cultural activities.

Substitution Effect

The transformation in purchasing decisions resulting from changes in the relative pricing of goods, compelling consumers to replace one good with another.

Hourly Wage

The amount of money paid to an employee for each hour of work performed.