McNeil Company owed its employees for services performed and recorded a liability for the wages owed the employees.Which of the following correctly describes the impact on the financial statements when the employee wages are subsequently paid?
A)Operating expenses are increased.
B)Retained earnings decreases.
C)Operating income does not change.
D)Total assets remain the same.

Question

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The Answer of McNeil Company owed its employees for services performed and recorded a liability for the wages owed the employees.Which of the following correctly describes the impact on the financial statements when the employee wages are subsequently paid?
A)Operating expenses are increased.
B)Retained earnings decreases.
C)Operating income does not change.
D)Total assets remain the same.

McNeil Company Owed Its Employees for Services Performed and Recorded