Which accounts are affected when the company pays salaries?
A) Assets and Capital increase.
B) Liabilities and Capital increase.
C) Assets and Expenses increase.
D) None of the above are correct.

Question

Quizplus · Accepted Answer

When a company pays salaries, its assets decrease because cash (an asset) is paid out, and its expenses increase, which reduces equity (not mentioned in the options). None of the provided options accurately describe this transaction.

Which Accounts Are Affected When the Company Pays Salaries