Which accounts are affected when the company pays salaries?

A) Assets and Capital
B) Liabilities and Revenue
C) Assets and Expenses
D) None of the above is correct.

Question

Which accounts are affected when the company pays salaries?A)  Assets and CapitalB)  Liabilities and RevenueC)  Assets and ExpensesD)  None of the above is correct.

Courtney Newsome · Accepted Answer

Final Answer : C, Explanation :  When a company pays salaries, its cash or bank balance (an asset) decreases, and its salary expense (an expense account, which ultimately reduces equity) increases. This transaction does not directly affect liabilities or revenue.

Which accounts are affected when the company pays salaries?

A) Assets and Capital
B) Liabilities and Revenue
C) Assets and Expenses
D) None of the above is correct.

Definitions

Learning Objectives

Learning Objectives

Related questions