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

Quizplus · Accepted Answer

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