The Account Adjusted with a Credit to Set Up Accrued

question 49

Multiple Choice

The account adjusted with a credit to set up accrued payroll is

• A)Wages Expense
• B)Wages Payable
• C)Wages Receivable
• D)Either A or B

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Definitions:

Direct Method

A costing method primarily used in cost accounting that allocates service department costs directly to production departments without any intermediate allocations.

Prepaid Expense

Payments made for goods or services to be received in the future, considered as an asset on the balance sheet until used or consumed.

Accrued Liabilities

Obligations that a company has incurred, for which it has not yet paid cash or issued payment during the accounting period.

Direct Method

An approach in cost accounting used to allocate service department costs directly to producing departments without distributing service costs between service departments.