If at the End of the Year the Firm Owes

question 64

Multiple Choice

If at the end of the year the firm owes a balance for workers' compensation insurance,the adjusting entry includes a

• A) debit to Workers' Compensation Insurance Payable a credit to Workers' Compensation Insurance Expense.
• B) a debit to Workers' Compensation Refund Receivable and a credit to Workers' Compensation Insurance Expense.
• C) a debit to Workers' Compensation Insurance Expense and a credit to Workers' Compensation Insurance Payable.
• D) a debit to Payroll Taxes Expense and a credit to cash.

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Definitions:

Sales Dollars

The total revenue generated from goods or services sold by a company, measured in dollars.

Common Fixed Expenses

Expenses that do not vary with production volume and are shared across different segments or products of a business.

Variable Costing

An accounting approach where only variable manufacturing costs are included in the cost of goods sold, excluding fixed manufacturing overhead.

Period Cost

Expenses that are not directly tied to production activity and are accounted for within the period they occur, such as selling and administrative expenses.