What Amount of Dividends Did West Corp

question 5

Multiple Choice

What amount of dividends did West Corp. receive from Compass Co.?

• A) $-0-.
• B) $25,200.
• C) $36,000.
• D) $42,000.
• E) $90,000.

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Definitions:

Accrue Employee Salaries

The process of recognizing the cost of salaries earned by employees but not yet paid to them.

Salaries Expense

An income statement item representing the total amount paid to employees in the form of salaries and wages during an accounting period.

Salaries Payable

A liability account that records the amount of salaries owed to employees but not yet paid.

Accrued Expenses

Expenses that have been incurred but not yet paid, recognized in the accounting period they are incurred, not when they are paid.