Anderson Corporation reports a decrease in Salaries Payable of $5,000. If Salaries Expense totaled $187,000 for the year, the cash paid to employees is:
A) $192,000.
B) $187,000.
C) $182,000.
D) $177,000.

Question

Quizplus · Accepted Answer

The decrease in Salaries Payable indicates that the company paid more cash than the Salaries Expense recorded. Therefore, the cash paid is $187,000 (Salaries Expense) + $5,000 (decrease in Salaries Payable) = $192,000.

Anderson Corporation Reports a Decrease in Salaries Payable of $5,000