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 increase the total expenses of the firm and decrease the net income of the firm.
B)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.
C)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.
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 represents an increase in expenses, which will decrease the net income of the firm. Therefore, option A is the correct choice. Option B is incorrect because a debit balance in the wages and salaries expense account means an increase in expenses, not incomes. Option C is incorrect because a debit balance in the wages and salaries expense account means an increase in expenses, which will decrease the net income of the firm. Option D is incorrect because a debit balance in the wages and salaries expense account means an increase in expenses, not income.

How Does a Debit Balance in the Wages and Salaries