T Ltd Paid $240 000 in Wages During the Year

question 38

Multiple Choice

T Ltd paid $240 000 in wages during the year.The opening balance of Accrued Wages was $8000 and the closing balance was $10 000.What was the wages expense for the year?

• A) $238 000
• B) $240 000
• C) $242 000
• D) None of the answers provided

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Definitions:

Financial Lease

A long-term lease agreement where the lessee assumes the risks and rewards of ownership, often with the option to purchase the asset at the end of the lease term.

Lessor

A person or entity that owns an asset and leases it to another party (lessee) under a lease agreement.

Lessee

The party in a lease agreement who has the right to use the property, plant, or equipment leased from the lessor for a specified period.

Sale and Leaseback

A financial transaction where the owner sells an asset and immediately leases it back from the buyer, often used in real estate.