The Following Totals for the Month of June Were Taken

question 115

Multiple Choice

The following totals for the month of June were taken from the payroll register of Arcon Company: The entry to record the payment of net pay would include a

• A) debit to Salaries Payable for $14,000
• B) Debit to Salaries Payable for $9,350
• C) Credit to Salaries Expense for $9,350
• D) Credit to Salaries Payable for $9,350

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Definitions:

Note Disclosures

Additional information provided in financial reports that complements and clarifies the main financial statements, often detailing accounting policies and methodologies.

Financing Activities

Financing activities are transactions between a business and its financiers, such as issuing debt or equity, to raise capital or pay dividends.

Cash Flow Statement

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, separating activities into operating, investing, and financing.

Credit Policies

The guidelines that a company follows to determine the creditworthiness of customers and the terms under which credit will be extended.