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:

Sales Tax

A tax imposed by a government on the sale of goods and services.

Credit Period

Length of time allowed for payment of goods sold on account.

Discount Period

The time frame in which a payment can be made at a reduced rate.

Contra-revenue Account

An account that offsets revenue accounts on the income statement, such as sales returns, allowances, and discounts.