If the Last Wages Bill for the Year Is Paid

question 50

Multiple Choice

If the last wages bill for the year is paid on 28 June and $6000 is owing at 30 June in unpaid wages,then:

• A) the $6000 would appear as accrued wages payable in the balance sheet but it would not be included in the expenses for the year.
• B) the $6000 would appear as accrued wages payable in the balance sheet and would be included in the expenses for the year.
• C) the $6000 would not be included in either the balance sheet or the profit and loss statement.
• D) the $6000 would appear as an expense in the profit and loss statement.

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Definitions:

Total Revenue

The entirety of income generated by a business from its selling activities, reflecting the aggregate price at which goods or services were sold times the total unit sold.

Total Costs

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Pure Monopoly

A market structure where a single company is the sole producer for a particular good or service, facing no competition.

Barriers to Entry

Factors that make it difficult for new firms to enter a market, such as high startup costs, regulatory requirements, and established competitors.