Cengage accounting chapter 2 homework answers
Question:
Where on a balance sheet does the amount of wages paid go?
Answer:
Accounting for Wage Expenses is a liability account. When a wage expense is recorded, money is taken out of the account for wage expenses. This means that the same amount needs to be added to the account for wages until the worker is paid. The income statement includes wage costs because they change over time. The accrual method of accounting records salary costs when the task is completed rather than when the employee is paid. Wage costs are not recognised in cash accounting until the employee is paid.
