Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday?
A) Payroll Taxes
B) Federal Income Taxes Payable
C) Wages Expense
D) Salaries Payable
E) None of the above

Question

Quizplus · Accepted Answer

Wages Expense reflects the total gross earnings that the employer incurs as an expense each payday. Payroll taxes and federal income taxes payable both show taxes that are withheld from employee paychecks and are not expenses incurred by the employer. Salaries payable reflects the amount owed to salaried employees but does not factor in gross earnings.

Which of These Accounts Shows the Total Gross Earnings That