Sun Smarts Solar installs solar panels in large newly constructed buildings. The company employs several expert installers who work on a full-time basis. Although the installation team works every day, the company pays them at the end of the month, for the previous month's work. Employee salaries are recorded as ________ on Sun Smarts's balance sheet.
A) capital cash flows
B) current liabilities
C) retained earnings
D) long-term liabilities

Question

Quizplus · Accepted Answer

The company is obligated to pay salaries out each month. This is a current liability, called "salaries payable."

Sun Smarts Solar Installs Solar Panels in Large Newly Constructed