Select the balance sheet account(s)that would be affected by a policy choice at the same time as the wages expense income statement account.

Question

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Accrued expenses, such as salaries and wages payable, are recorded as a liability on the balance sheet and are directly related to the wages expense recorded on the income statement. Any policy choice that impacts the amount or timing of wages paid would affect both the income statement wage expense and the balance sheet accrued wages liability. The other options listed are not directly related to wages and would not be affected by a policy choice related to wages.

Select the Balance Sheet Account(s)that Would Be Affected by a Policy