The Employees of Able Company Have Worked the Last Two

question 6

Multiple Choice

The employees of Able Company have worked the last two weeks of Year 1,but the employees' salaries have not been paid or recorded as of December 31,Year 1.The adjusting entry that Able should make to accrue these unpaid salaries on December 31,Year 1 is:

• A)debit to Salaries Expense and credit to Cash.
• B)debit to Salaries Expense and credit to Salaries Payable.
• C)debit to Salaries Payable and credit to Salaries Expense.
• D)no entry is required until the employee is paid next period.

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Definitions:

Cost Of Capital

Cost of capital represents the return rate that a company must achieve to maintain its market value, affecting its ability to invest in new projects or assets.

Profit-Based Measure

A financial metric used to evaluate the profitability of a business, project, or investment, such as net profit margin.

Pay Systems

The framework within an organization that determines how employees are compensated, including salaries, bonuses, raises, and incentives.

Accounting Results

The outcomes derived from the accounting processes, including financial statements and reports that reflect the financial performance and condition of an entity.