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:

Positive Cash Flow

A situation where the net amount of cash and cash-equivalents being transferred into and out of a business is positive, indicating financial health.

Commercial Banks

Financial institutions that offer a wide range of banking services to individuals and businesses, including deposit accounts, loans, and other financial services.

Commercial Finance Companies

Financial institutions that offer loans to businesses, particularly for equipment or inventory financing.

Leasing Companies

Firms that lease vehicles, equipment, or facilities to businesses or individuals, usually for a fixed period at a specified rate.