Zimbalist Corporation reports a decrease in Salaries Payable of $5,000.If Salaries Expense totaled $187,000 for the year,the cash paid to employees is:
A)$177,000.
B)$182,000.
C)$187,000.
D)$192,000.

Question

Quizplus · Accepted Answer

The decrease in Salaries Payable indicates that the company paid more cash than the Salaries Expense recorded. Therefore, the cash paid is $187,000 (Salaries Expense) + $5,000 (decrease in Salaries Payable) = $192,000.

Zimbalist Corporation Reports a Decrease in Salaries Payable of $5,000