The adjusting entry for wages earned but unpaid results in a(n)________.
A) increase in expenses and an increase in liabilities
B) increase in expenses and a decrease in liabilities
C) decrease in expenses and a decrease in liabilities
D) decrease in expenses and an increase in liabilities

Question

Quizplus · Accepted Answer

The adjusting entry for wages earned but unpaid increases the expense account (wages expense) and increases the liability account (wages payable) to reflect the amount owed to employees for their work during the accounting period. Therefore, option A (increase in expenses and an increase in liabilities) is the correct choice.

The Adjusting Entry for Wages Earned but Unpaid Results in A(n)________