When wages are incurred in one period and paid in the next period, this leads to which of the following accounts appearing in the statement of financial position?
A) Service revenue.
B) Accounts receivable.
C) Wages payable.
D) Wages expense.

Question

Quizplus · Accepted Answer

When wages are earned in one period and paid in the next period, the unpaid wages are a liability in the statement of financial position.

When Wages Are Incurred in One Period and Paid in the Next