Creek IncHas a Weekly Payroll of $8,000 for a 5-Day Workweek,Monday

question 92

Multiple Choice

Creek Inc.has a weekly payroll of $8,000 for a 5-day workweek,Monday through Friday.If December 31,the last day of the accounting year,falls on Wednesday,Creek would make an adjusting entry that would

• A)increase wages expense $4,800.
• B)decrease wages payable $4,800.
• C)decrease cash $4,800.
• D)increase wages payable $8,000.

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Definitions:

Job Evaluation

A systematic process for determining the value and rank of a job in an organization relative to other jobs.

Wage Survey Data

Information collected on wage rates for various jobs within an industry or region, used to compare and set competitive salaries.

Internal Equity

A pay strategy ensuring fairness in employees' wages within the same organization, based on job value and employee contribution.

External Equity

A principle in compensation management that ensures an organization's pay rates are competitive with those in the external labor market.