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

Question

Quizplus · Accepted Answer

A debit balance in the wages and salaries expense account represents an increase in expenses for the firm. This will increase the total expenses of the firm and decrease the net income of the firm, as expenses are subtracted from revenues to calculate net income on the income statement. Therefore, option B is the correct choice.

How Does a Debit Balance in the Wages and Salaries