X Co's employees carry out work to the value of $7 500.They are paid $4 500 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:

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Quizplus · Accepted Answer

Under the accrual approach, expenses are recorded when they are incurred, not when they are paid. Therefore, the full amount of $7,500 is recorded as wages expense in the current period.

X Co's Employees Carry Out Work to the Value of $7