The Employees of Leichester Services Company Worked the Last Two

question 110

Multiple Choice

The employees of Leichester Services Company worked the last two weeks of December,2016.They received their paychecks on January 2,2017.Which of the following accounts should appear on the income statement for the year ended December 31,2016?

• A) Salaries Expense
• B) Prepaid Expense
• C) Salaries Payable
• D) Unearned Revenue

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Definitions:

Break-Even Point

The level of production or sales at which total revenues equal total costs, resulting in no net loss or gain.

Variable Costs

Costs that vary directly with the level of production or volume of output.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the total amount loaned, paid to the lender over a specific period of time.