ACCA FA · Chapter 7 · Question 11 of 12
A business pays its staff every Friday for the five-day week ending on that day. The weekly wages bill is $3,500. The year end falls on a Wednesday. What accrual for wages is required at the year end?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) $2,100
Explanation
At the year end (Wednesday), staff have worked Monday, Tuesday and Wednesday - 3 days - for which they have not yet been paid. Daily wages = $3,500 / 5 = $700. Accrual = 3 x $700 = $2,100. $1,400 accrues only two days.
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