Question
X Co's employees carry out work to the value of $7500. They are paid $4500 immediately with the balance to be settled in the next
X Co's employees carry out work to the value of $7500. They are paid $4500 immediately with the balance to be settled in the next accounting period. Under the accrual approach to profit measurement the amount of wages expense that will be recorded in the current period is:
a) Nil
b) $4500
c) $3000
d) $7500
I searched this question on the internet and a lot of search results say that the answer is $4500. However, I got this question wrong in my online test. The teacher said the answer is $7500. I don't know if the internet is correct or if my teacher is correct. I also don't know how to solve this question. Thank you.
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