Matching Principle And Payroll Practice Quiz » Week 2 » Liabilities And Equity In Accounting

Q: A salesperson makes a 5% commission on every sale they make in the month of January, but their commission isn't paid until February. This means that if they sell $100 worth of products in January, the company will pay them $5 in February.

Correct! Even though the commission was paid in February, it was incurred in January, so we record it in January.

Q: An employee earns a bonus of $10,000 in 2019 based on their performance in the workplace. The bonus isn't paid out to them until 2020. <br> <br> When will the bonus be recorded on the income statement?

Correct! The expense was in 2019, so it should be recorded in 2019.

Q: Let's say a full time hourly employee’s pay period ends on April 20th, but they didn’t get paid until May 3rd. This expense needs to be recorded in which month?

Correct! The expense will actually be recorded in the April income statement for the wages earned between April 21 and April 30th.

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Q:

A salesperson makes a 5% commission on every sale they make in the month of January, but their commission isn’t paid until February. This means that if they sell $100 worth of products in January, the company will pay them $5 in February.

View Solution

Q:

An employee earns a bonus of $10,000 in 2019 based on their performance in the workplace. The bonus isn’t paid out to them until 2020. When will the bonus be recorded on the income statement?

View Solution

Q:

Let’s say a full time hourly employee’s pay period ends on April 20th, but they didn’t get paid until May 3rd. This expense needs to be recorded in which month?

View Solution

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