Sage, Inc Has 20 Employees Who Work Monday Through Friday Each

question 13

Multiple Choice

Sage, Inc. has 20 employees who work Monday through Friday each week; each employee earns $200 per day and is paid every Friday. The end of the accounting period is on a Wednesday. How much wages expense should the firm accrue at the end of the period?

• A) $4,000
• B) $2,000
• C) $0
• D)$12,000

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Definitions:

Classical Economists

Economists from the 18th and 19th centuries who advocated for free markets, minimal government intervention, and believed in the theory of self-regulating economies.

Quantity of Money

The total amount of money in circulation or in existence within an economy at a given time.

Interest Rate

The price, in terms of a percentage of the principal, a borrower incurs from a lender to utilize assets.

Hyperinflation

Runaway inflation; in the United States, double-digit inflation.