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

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

Quizplus · Accepted Answer

Accruing wages expense increases the liability (wages payable) and decreases stockholders' equity (retained earnings), because the company has incurred the expense but has not yet paid for it. Therefore, the accounting equation is impacted by an increase in liabilities and a decrease in equity.

What Is the Impact on the Accounting Equation of Recording