How does a debit balance in the wages and salaries expense account affect a ﬁrm's income statement?
A)A debit balance will increase the expenses of the ﬁrm's income statement. This will decrease the total expenses of the ﬁrm and increase the net income of the ﬁrm.
B)A debit balance will increase the expenses of the ﬁrm's income statement. This will increase the total expenses of the ﬁrm and decrease the net income of the ﬁrm.
C)A debit balance will decrease the expenses of the ﬁrm's income statement. This will increase the total incomes of the ﬁrm and decrease the net income of the ﬁrm.
D)A debit balance will increase the income of the ﬁrm's income statement. This will increase the total expenses of the ﬁrm and increase the net income of the ﬁrm.

Question

Quizplus · Accepted Answer

A debit balance in the wages and salaries expense account increases the total expenses on the income statement, which in turn decreases the net income of the firm.

How Does a Debit Balance in the Wages and Salaries