On the cash flow statement,which of the following would equal cash paid for salaries?
A)Salaries Payable plus change in cash
B)Salaries Expense plus change in Salaries Payable
C)Salaries Expense plus ending balance in Salaries Payable
D)Salaries Expense plus beginning balance in salaries Payable

Question

Quizplus · Accepted Answer

The correct answer is B) Salaries Expense plus change in Salaries Payable. This is because the cash paid for salaries is determined by the total salaries expense recognized during the period plus any decrease in the salaries payable account (or minus any increase in the salaries payable account). The change in Salaries Payable adjusts for any salaries that were accrued but not paid in cash during the period.

On the Cash Flow Statement,which of the Following Would Equal