The salaries payable account is:
A) closed into the capital account.
B) closed into the drawing account.
C) shown on the balance sheet as a liability.
D) shown on the income statement.
E) shown on the balance sheet as an asset.

Question

Quizplus · Accepted Answer

Salaries payable is a liability that represents the amount owed by the company to its employees for the work done but not yet paid for. Therefore, it should be shown on the balance sheet as a liability. It is not closed into any account as it carries over to the next period.

The Salaries Payable Account Is