Which of the Following Describes the Transaction Resulting in a Journal

question 20

Multiple Choice

Which of the following describes the transaction resulting in a journal entry with a debit to Wages Payable and a credit to Cash?

• A)Wages expense has been incurred but is unpaid.
• B)Cash was used to pay for wages that were previously recorded as an expense.
• C)Cash was used to pay for wages that were not previously recorded as an expense.
• D)Cash was used to prepay employee wages.

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Definitions:

Yearly Savings Rate

The percentage of an individual's or household's income that is saved rather than spent over the course of a year.

FOB Shipping Point

A term in shipping contracts that specifies that the buyer is responsible for the cost and risk of transporting goods from the point of origin as soon as they are loaded onto the transport vehicle.

Freight Costs

Expenses associated with transporting goods from one location to another, including charges for shipping, handling, and insurance.

FOB Shipping Point

A delivery term indicating that the buyer takes ownership and risk for the goods once they are shipped, with FOB meaning "Free On Board".