Boxes R' Us paid $5,000 in salaries and wages for February.This transaction will:
A)increase expenses and decrease revenue.
B)increase expenses and increase liabilities.
C)decrease assets and increase expenses.
D)Increase assets and expenses.

Question

Quizplus · Accepted Answer

The payment of salaries and wages will decrease the company's assets (cash), because cash is leaving the company. At the same time, it will increase expenses, because salaries and wages are an expense for the company. There is no effect on revenue or liabilities from this transaction.

Boxes R' Us Paid $5,000 in Salaries and Wages for February.This