During 2018, the first year of operations, silver, inc., pays salaries of $175,000. at the end of the year, employees have earned salaries of $20,000, which are not paid by silver until early in 2019. what is the amount of the deduction for salary expense?

a. if silver uses the accrual method, $195,000 in 2018 and $0 in 2019.

b. if silver uses the accrual method, $175,000 in 2018 and $20,000 in 2019.

c. if silver uses the cash method, $175,000 in 2018 and $0 in 2019.

d. if silver uses the cash method, $0 in 2018 and $195,000 in 2019.

e. none of these choices are correct.

Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.