During the year, Salaries and Wages Payable decreased by $5,000. If Salaries and Wages Expense amounted to $174,000 for the year, the cash paid to employees (including deductions from gross pay) is
A) $179,000.
B) $174,000.
C) $169,000.
D) $184,000.

Question

Quizplus · Accepted Answer

The decrease in Salaries and Wages Payable indicates that more cash was paid than the expense recognized. Therefore, cash paid is $174,000 (expense) + $5,000 (decrease in payable) = $179,000.

During the Year, Salaries and Wages Payable Decreased by $5,000