Cup's Inc. paid $15,000 in salaries and wages for February. This transaction will:
A) increase Expenses and decrease Revenue.
B) increase Expenses and increase Liabilities.
C) decrease Assets and increase Expenses.
D) increase Assets and Expenses.

Question

Quizplus · Accepted Answer

Paying salaries and wages increases expenses because it is a cost incurred by the business. It decreases assets because cash (an asset) is used to pay these expenses.

Cup's Inc Paid $15,000 in Salaries and Wages for February