Boxes R' Us paid $3,000 in salaries and wages for February.This transaction will:
A)increase expenses and decrease revenue.
B)increase expenses and increase liabilities.
C)decrease assets and increase expenses.
D)decrease assets and expenses.

Question

Quizplus · Accepted Answer

The payment of salaries and wages for February will decrease the company's asset (cash) and increase the expense of salaries and wages. Therefore, option C is the correct answer. Option A is incorrect because it suggests a decrease in revenue, which is not mentioned in the transaction. Option B is incorrect because it suggests an increase in liabilities, which is also not mentioned in the transaction. Option D is incorrect because it suggests a decrease in expenses only, ignoring the decrease in assets.

Boxes R' Us Paid $3,000 in Salaries and Wages for February.This