Expenses sometimes make their contribution to revenue in a different period than when they are paid. When wages are incurred in one period and paid in the next period, this often leads to which account appearing on the statement of financial position at the end of the time period?
A) Due from Employees.
B) Due to Employer.
C) Salaries and Wages Payable.
D) Salaries and Wages Expense.

Question

Quizplus · Accepted Answer

When wages are incurred but not yet paid at the end of the time period, they are recorded as an obligation to pay employees, which appears as Salaries and Wages Payable on the statement of financial position. Option A (Due from Employees) and B (Due to Employer) do not make sense in this scenario, and option D (Salaries and Wages Expense) refers to the amount of wages that have been incurred and recognized as an expense during the time period.

Expenses Sometimes Make Their Contribution to Revenue in a Different