Which financial statement shows Salaries expense?
A)Income statement
B)Statement of changes in shareholders' equity
C)Statement of cash flows
D)Balance sheet

Question

Quizplus · Accepted Answer

Salaries expense is typically included as an operating expense on the income statement, which shows a company's revenues, expenses, and net income (or loss) over a specified period of time. The statement of changes in shareholders' equity shows changes in a company's equity (such as stock issuances and dividends paid) and not its expenses. The statement of cash flows shows a company's cash inflows and outflows, but not specific expense amounts. The balance sheet shows a company's assets, liabilities, and shareholders' equity at a specific point in time, but not its expenses.

Which Financial Statement Shows Salaries Expense