Use This Information to Answer the Following Question

question 52

Multiple Choice

Use this information to answer the following question. Panadora Company has the following information for the pay period of January 1-15,2014.Payment occurs on January 20.

-The entry to record the payroll would include a

• A)debit to Salaries Payable for the net amount.
• B)credit to State Unemployment Tax Payable.
• C)debit to Salaries Expense for the amount paid to the employees.
• D)debit to Salaries Expense for the gross payroll.

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Definitions:

Internal Rate of Return

The discount rate that makes the net present value of all cash flows (both positive and negative) from a particular project or investment equal to zero.

Present Value

The present-day value of a future cash sum or cash flow sequence, with a given interest rate.

Average Investment

The mean value of all investments held over a specific period, used to analyze investment performance.

Straight-Line Depreciation

A technique for spreading the expense of a physical asset evenly across its operational lifespan each year.