Green Living Construction Company installs solar panels in large newly constructed buildings.The company employs several expert installers who work on a full-time basis.Although the installers work everyday,the company pays them at the end of the month,for the previous month's work.Employee salaries are recorded as ___________ on Green Living's Balance Sheet.

Question

Quizplus · Accepted Answer

Employee salaries that have been earned but not yet paid are recorded as current liabilities on the balance sheet. This is because they represent a debt that the company owes to its employees and are expected to be paid within a year.

Green Living Construction Company Installs Solar Panels in Large Newly