It is the year end, but not the pay period end. How will this affect the balance sheet?
A) Assets will be increased.
B) Liabilities will be increased.
C) Owner's equity will be increased.
D) This has no effect on the period end balance sheet.

Question

Quizplus · Accepted Answer

Liabilities will be increased because wages or salaries that have been earned by employees but not yet paid by the year end will be recorded as a liability (wages payable or accrued wages) on the balance sheet.

It Is the Year End, but Not the Pay Period