During the year, Salaries Payable decreased by $6,000. If Salary Expense amounted to $170,000 for the year, the cash paid to employees (including deductions from gross pay) is
A) $176,000.
B) $170,000.
C) $164,000.
D) $182,000.

Question

Quizplus · Accepted Answer

The decrease in Salaries Payable indicates that more cash was paid than the expense recorded. Therefore, cash paid is Salary Expense plus the decrease in Salaries Payable: $170,000 + $6,000 = $176,000.

During the Year, Salaries Payable Decreased by $6,000