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Purple Co's Employees Carry Out Work to the Value of $7500

Question 53

Multiple Choice

Purple 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) $7500.
B) $4500.
C) $3000.
D) nil.

Correct Answer:

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