Question

An adjusting entry to accrued wages earned but not yet paid is an example of _______________.

• A. Adjusting recorded costs with the appropriate accounting periods
• B. Adjusting recorded revenue with the appropriate accounting periods
• C. Reflecting unrecorded expenses incurred during the accounting period
• D. Reflecting unrecorded revenue earned during the accounting period.

Answer 1

Answer: (C)

Reflecting unrecorded expenses incurred during the accounting period

Unpaid Wages Under the accrual basis of accounting, unpaid wages that have been earned by employees but have not yet been recorded in the accounting records should be entered or recorded through an accrual adjusting entry which will: Debit Wages Expense. Credit Wages Payable or credit Accrued Wages Payable.