When a company pays an employee for work performed,it is considered an economic event that is recorded as a transaction.

Question

Quizplus · Accepted Answer

This statement is true. Payment of employee's wages/salaries is a transaction involving the exchange of cash or other economic resources (e.g. electronic transfer) for their services. Transactions are the basis of financial accounting and are recorded in the company's books.

When a Company Pays an Employee for Work Performed,it Is