An Adjusting Entry Was Made on the Last Day of the Previous

question 44

Multiple Choice

An adjusting entry was made on the last day of the previous fiscal year debiting Wages Expense and crediting Wages Payable.If a reversing entry has been made,then at the time of payment

• A)the accountant needs to find out how much of the payment applies to the current period and how much applies to the previous period.
• B)the accountant will debit Wages Payable and Wages Expense,and credit Cash.
• C)the accountant will debit Wages Expense and credit Cash.
• D)the accountant will debit Cash and credit Wages Expense.

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Definitions:

Profits Negative

A financial state where a business experiences a deficit, spending more money than it is earning from its operations.

Stagnation

A period of slow or no growth in an economy, market, or industry, often marked by a decline in productivity and innovation.

Product Life Cycle

A concept that describes the stages a product goes through from its introduction to the market until its decline and eventual withdrawal.

Maturity

The state of being fully grown or developed, often referring to the final stage in the life cycle of a product or market.