Wages and salaries expense plus the increase in wages and salaries payable equals cash paid for wages and salaries.

Question

Quizplus · Accepted Answer

Wages and salaries expense plus the increase in wages and salaries payable does not necessarily equal cash paid for wages and salaries. The increase in wages and salaries payable is an accrual and does not represent actual cash paid. Cash paid for wages and salaries is the wages and salaries expense minus the decrease in wages and salaries payable.

Wages and Salaries Expense Plus the Increase in Wages and Salaries