During 2017, the First Year of Operations, Silver, Inc

question 88

Multiple Choice

During 2017, the first year of operations, Silver, Inc., pays salaries of $175,000. At the end of the year, employees have earned salaries of $20,000, which are not paid by Silver until early in 2018. What is the amount of the deduction for salary expense?

• A) If Silver uses the cash method, $175,000 in 2017 and $0 in 2018.
• B) If Silver uses the cash method, $0 in 2017 and $195,000 in 2018.
• C) If Silver uses the accrual method, $175,000 in 2017 and $20,000 in 2018.
• D) If Silver uses the accrual method, $195,000 in 2017 and $0 in 2018.
• E) None of the above is correct.

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Definitions:

Strategic Alignment

The process of aligning an organization's resources and actions with its strategic objectives to achieve long-term goals.

Target Forecasting

The process of estimating future sales, revenue, or other quantitative metrics based on historical data, market trends, and business analysis.

Replacement Selection

The process of identifying and selecting a candidate to replace an existing employee within an organization.

Mission Statement

A brief description of an organization's fundamental purpose and guiding principles, intended to inform its strategic vision and direction.