Assume that a company recorded the following journal entry, with regards to the impact of this journal entry.
a)_____ Total claims stay the sameb)_____ Total assets stay the samec)_____ Total liabilities decreased)_____ Cash flows from operating activities increasese)_____ Stockholders' equity stays the same

Question

Quizplus · Accepted Answer

b)True c)False d)False e)F. The credit to salaries payable increases that liability account, which increases total liabilities.d)This is false. There is no effect on cash flows.e)This is false. The debit to wages expense decreases stockholders' equity.

Assume That a Company Recorded the Following Journal Entry, with Regards