The Closing Entry for the Salaries Expense Account Includes a Debit

question 80

Multiple Choice

The closing entry for the Salaries Expense account includes a debit to:

• A)Salaries Expense and a credit to Retained Earnings.
• B)Salaries Expense and a credit to Net Income.
• C)Retained Earnings and a credit to Salaries Expense.
• D)Net Income and a credit to Salaries Expense.

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Definitions:

Futures Contract

A contractual arrangement committing to the purchase or sale of a specific financial asset or commodity at an agreed price, set to occur at a future date.

Short-Sale

A trading strategy that involves selling borrowed securities with the expectation of buying them back at a lower price to profit from a decline in their value.

LIBOR

The London Interbank Offered Rate, previously a benchmark interest rate at which major global banks lend to one another.

Bankers' Acceptances

Short-term debt instruments issued by a company that is guaranteed by a commercial bank, commonly used in international trade.