The total of wage expense to employees for the year was $600,000.Wages payable to employees at the beginning of the year were $15,000 and at the end of the year $10,000.Wage expense resulted in cash outflows of?
A) $595,000
B) $600,000
C) $605,000
D) $610,000

Question

Quizplus · Accepted Answer

The cash outflow for wages is calculated by adjusting the wage expense for changes in wages payable. Starting with $600,000 wage expense, subtract the decrease in wages payable ($15,000 - $10,000 = $5,000), resulting in a cash outflow of $605,000.

The Total of Wage Expense to Employees for the Year