Cindy is a college student working in the accounting department of a company for a co-op program.She is learning about accounting and asks her supervisor how she should classify the salaries paid to employees.What will the supervisor tell Cindy?
A) Salaries paid are an operating expense.
B) Salaries paid are assets.
C) Salaries paid are liabilities.
D) Salaries paid are dividends.

Question

Quizplus · Accepted Answer

Salaries paid to employees are considered operating expenses as they are necessary costs for running the business operations. They are not assets, liabilities, or dividends.

Cindy Is a College Student Working in the Accounting Department