What is the impact on the accounting equation of recording the accrual of wages expense?

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The accrual of wages expense increases the liability of wages payable, which is a part of the accounting equation. As liabilities increase, shareholders' equity decreases to keep the accounting equation in balance. Therefore, the impact on the accounting equation of recording the accrual of wages expense is that liabilities increase and shareholders' equity decreases.

What Is the Impact on the Accounting Equation of Recording