Assume Reversing Entries Are Made by the Entity

question 23

Multiple Choice

Assume reversing entries are made by the entity. If wages of $2600 were accrued at the end of the year and the first payment of wages the following year was $33 100 how would this payment be recorded?

• A) DR Salaries payable $2600; DR Salaries expense $30 500; CR Cash $33 100
• B) DR Salaries expense $35 700; CR Salaries payable $2600; CR Cash $33 100
• C) DR Salaries payable $2600; DR Salaries expense $33 100; CR Cash $35 700
• D) DR Salaries expense $33 100; CR Cash $33 100

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Definitions:

Autocratic

Referring to a leadership style characterized by individual control over all decisions with little input from group members.

Democratic

Pertaining to or characterized by the principles of democracy, involving fair and equal participation and representation of the people in the decision-making process.

Laissez-Faire

A leadership or management style characterized by a minimal amount of direct supervision, allowing individuals or teams considerable freedom in their work.

Transactional Leader

A leadership style focused on the exchange between leader and followers, where compliance is exchanged for specified rewards.