Salaries payable on the balance sheet most likely means that ________.
A)the company is in serious financial difficulty.It doesn't even have enough cash to pay its employees
B)the company's accountants are seriously confused.Salaries appear on the income statement,not on the balance sheet
C)employees did not receive payment for the last few days of work because the last day of the accounting period was not a payday
D)employees were overpaid and now owe the company money

Question

Quizplus · Accepted Answer

Salaries payable on the balance sheet means that the company owes its employees money for the last few days of work, but the last day of the accounting period was not a payday yet. It does not necessarily indicate financial difficulty or confusion on the part of the accountants, nor does it imply that employees were overpaid and owe the company money.

Salaries Payable on the Balance Sheet Most Likely Means That