During the year Salaries Payable decreased by $5000. If Salary Expense amounted to $174000 for the year the cash paid to employees (including deductions from gross pay) is
A) $179000.
B) $174000.
C) $169000.
D) $184000.

Question

Quizplus · Accepted Answer

The cash paid to employees is calculated by adding the decrease in Salaries Payable to the Salary Expense. Since Salaries Payable decreased by $5000, it means $5000 was paid out, so $174000 (Salary Expense) + $5000 (decrease in Salaries Payable) = $179000.

During the Year Salaries Payable Decreased by $5000