Accounting is <em>a field that is concerned with the processing, measuring, and communicating of financial information of a company.</em> If you worked in an accounting department, you would most definitely have to reconcile accounts, prepare financial statements, monitor accounting activities, and prepare an investment schedule for the organization.
You will not, however, be expected to (D) develop marketing and advertising strategies. This type of task is usually assigned to the marketing department of a company.
Answer:
Multiplier effect
Explanation:
Multiplier effect refers to the increases in the final income as a result of new injections in spending. It indicates changes in spending that causes changes in real gross domestic product more than the initial change in spending. The scenario presented in the question illustrates multiplier effect. It involves increase in the level of demand in the circular flow of income that stimulates buying and selling.
Answer: A) debit to Salaries and Wages Expense for $88,800
Explanation:
When recording the payroll for the month, the gross pay of $88,800 will be debited to the Salaries and Wages expense account.
The relevant deductions are then made which in this case would be FICA taxes, Income taxes withheld and Medical insurance deductions. The unemployment taxes are the responsibility of the employer so will not be deducted.
The Journal entry will therefore be;
Debit Credit
April 30 Salaries and Wages Expense 88,800
FICA Taxes withheld 6,790
Income taxes withheld 18,500
Medical Insurance deductions 3,300
Salaries and Wages Payable 60,210
