Which Accounts Are Used in the Adjusting Entry to Record

question 51

Multiple Choice

Which accounts are used in the adjusting entry to record salaries owed to employees,but not paid until the next accounting period?

• A)Salaries Expense and Salaries Payable
• B)Unearned Salaries and Salaries Payable
• C)Salaries Payable and Deferred Salaries Expense
• D)Deferred Salaries Payable and Salaries Receivable

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Definitions:

WACC

Weighted Average Cost of Capital; a calculation of a company's capital cost that weighs each category of capital proportionately.

Marginal Tax Rate

The marginal tax rate is the rate of tax applied to the next dollar of taxable income, indicating the percentage of tax an individual or corporation pays on an additional dollar of income.

Yield-to-Maturity

The total return anticipated on a bond if the bond is held until it matures, considering all interest payments and repaid principal.

After-Tax Cost of Debt

After-Tax Cost of Debt represents the net cost of debt to a company after accounting for the tax deductions on interest expenses.