When a Firm Has Wages Earned but Not Yet Paid

question 57

Multiple Choice

When a firm has wages earned but not yet paid at the end of a financial reporting period,what must it do to recognize the liabilities and expenses?

• A)It must credit the asset accounts for the appropriate payroll amounts.
• B)It must pay its employees for the wages earned as of that date.
• C)It must wait until the next financial period to record the payroll data.
• D)It must create an adjusting entry to recognize the payroll accrual.

---

Definitions:

Injuries

Injuries refer to physical harm or damage to the body caused by accidents, falls, hits, weapons, and other external forces.

Computers

Electronic devices that can store, retrieve, and process data, executing instructions to perform a wide variety of tasks.

Cold Boot

The process of starting a computer from a powered-down or off state.

Powering On

The process of activating or turning on an electronic device or system, initiating its operational state.