Wyatt Company paid $57,000 in January 2016 for salaries that had been earned by employees in December 2015.Indicate whether each of the following statements about financial statement effects of the January 2016 event is true or false.
_____ a)The income statement for 2016 is not affected because the salaries expense had been recognized at the end of December in 2015.
_____ b)On the 2016 statement of cash flows,cash flows from operating activities decreased.
_____ c)Payment of the salaries in 2016 increased a liability.
_____ d)The 2016 statement of changes in stockholders' equity would not be affected because the salaries expense had been recognized at the end of December in 2015.
_____ e)Both assets and equity decreased in 2016 as a result of this transaction.

Question

Quizplus · Accepted Answer

The Answer of Wyatt Company paid $57,000 in January 2016 for salaries that had been earned by employees in December 2015.Indicate whether each of the following statements about financial statement effects of the January 2016 event is true or false.
_____ a)The income statement for 2016 is not affected because the salaries expense had been recognized at the end of December in 2015.
_____ b)On the 2016 statement of cash flows,cash flows from operating activities decreased.
_____ c)Payment of the salaries in 2016 increased a liability.
_____ d)The 2016 statement of changes in stockholders' equity would not be affected because the salaries expense had been recognized at the end of December in 2015.
_____ e)Both assets and equity decreased in 2016 as a result of this transaction.

Wyatt Company Paid $57,000 in January 2016 for Salaries That