The Star Mobile Phone Company Estimates That the Amount of Monthly

question 60

Multiple Choice

The Star Mobile Phone company estimates that the amount of monthly salaries on which four weeks annual leave is payable is $208 000. What is the correct accounting entry to accrue annual leave at the end of the month?

• A) Debit annual leave payable $16 000; credit bank $16 000
• B) Debit annual leave payable $16 000; credit annual leave expense $16 000
• C) Debit annual leave expense $16 000; credit annual leave payable $16 000
• D) No accounting entry is required

---

Definitions:

Proactive Interference

The phenomenon where older memories hinder the recall of newly learned information.

Retroactive Interference

A phenomenon where new memories disrupt the recall of previously formed memories.

Cue-dependent Forgetting

The inability to recall information without memory cues, suggesting that forgetting may occur when retrieval cues are not present.

Proactive Interference

A psychological phenomenon where older memories hinder the recall of newer memories.