A liability is created
A)when merchandise is purchased with cash.
B)when owners invest in a company.
C)when merchandise is sold on account.
D)when salary expense is recognized before employees are paid.
E)when rent is paid in advance.

Question

Quizplus · Accepted Answer

A liability is created when salary expense is recognized before employees are paid because the company owes money to the employees for work already performed.

A Liability Is Created