The Employees of Sinclair Services Company Worked the Last Two

question 97

Multiple Choice

The employees of Sinclair Services Company worked the last two weeks of December.They received their paychecks on January 2.Which of the following accounts should appear on the balance sheet as of December 31?

• A) Accounts Payable
• B) Salaries Payable
• C) Salaries Expense
• D) Prepaid Expense

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase a stock, bond, or other instrument at a specified price within a specific time period.

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a specified time frame.

Fixed Price

A predetermined price at which goods and services are sold, not subject to change based on fluctuations in market demand or supply.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an underlying stock, bond, commodity, or other assets at a specified price within a specific time period.