An Adjusting Entry That Credits Salaries Payable Is an Example

question 64

Multiple Choice

An adjusting entry that credits Salaries Payable is an example of a(n) ________.

• A) accrued expense
• B) deferred revenue
• C) accrued revenue
• D) deferred expense

---

Definitions:

Asset Bubble

A situation in financial markets where the price of an asset inflates to levels far beyond its intrinsic value, leading to an eventual crash.

Efficient Markets Hypothesis

The theory that all available information is fully reflected in asset prices, meaning that it's impossible to consistently achieve higher-than-market returns.

Firm-Specific Risk

Risk that affects only a single company

Market Risk

The possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets.