This question-specific review guide is tied to the answer reasoning for a PracticeTestVault item. Use it after you answer the question so the review stays focused on what the prompt actually tested.
What this question is testing
Objective: Accrued Expenses
Prompt focus: Employees earned $3,000 in wages on the last week of the month but will not be paid until next month. The required adjusting entry is:
Why the correct answer works
Debit Wages Expense $3,000, Credit Wages Payable $3,000
Debit Wages Expense and credit Wages Payable to record the accrued obligation.
Why the tempting wrong answer fails
The tempting wrong answer usually loses because it skips the key condition, priority, or evidence in the prompt.
Plain-language takeaway
Under accrual accounting, expenses must be recognized in the period incurred. Wages Payable records the liability until paid.
Simple analogy
Think of accrued expenses like following a short checklist: identify the clue, confirm the rule, and then make the move that fits this exact scenario.
How to review it before a retake
- Underline the command word and name what the question is asking before rereading the choices.
- Compare the correct answer against the closest distractor and write the exact detail that separates them.
- Retest this objective with a fresh question without looking at the rationale first.