Alex Company Has 10 Employees, Who Earn a Total of $1,800

question 77

Multiple Choice

Alex Company has 10 employees, who earn a total of $1,800 in salaries each working day. They are paid on Monday for the five-day workweek ending on the previous Friday. Assume that year ended December 31, is a Wednesday and all employees will be paid salaries for five full days on the following Monday. The adjusting entry needed on December 31 is:

• A) Debit Salaries Expense, $5,400; credit Salaries Payable, $5,400.
• B) Debit Salaries Expense, $3,600; credit Salaries Payable, $3,600.
• C) Debit Salaries Expense, $9,000; credit Salaries Payable, $9,000.
• D) Debit Salaries Payable, $5,400; credit Salaries Expense, $5,400.
• E) Debit Salaries Expense, $5,400; credit Cash, $5,400.

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Definitions:

Autocratic Leadership

Management approach whereby leaders make decisions on their own without consulting employees.

Two-way Communication

The process of exchanging information where both parties are able to send and receive messages, promoting interaction and feedback.

Employee Empowerment

is the practice of giving employees the authority, resources, and responsibility to make decisions and contribute to the company’s success.

Boss-centered

A leadership or organizational style where decision-making and authority are centralized around a single leader or a small group of leaders.