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fomenos
3 years ago
13

An accrual of wages expense would have what effect on the balance sheet? A. Decrease liabilities and increase equity B. Increase

assets and increase liabilities C. Increase liabilities and decrease equity D. Decrease assets and decrease liabilities E. None of the above
Business
2 answers:
Salsk061 [2.6K]3 years ago
8 0

Answer: C. Increase liabilities and decrease equity

Explanation:

Wages payable are wages that a firm's workers have earned, but have not yet been paid and using the accrual method of accounting, it is recorded with an adjusting entry at the end of the accounting period. This allows the amount to be included as a current liability in the balance sheet. An accrual of wages expense increase wages payable (a current liability) and decreases retained earnings (equity) resulting from the decrease in net income. Therefore, An accrual of wages expense would increase liabilities and decrease equity.

nydimaria [60]3 years ago
5 0

Answer:

C. Increase liabilities and decrease equity

Explanation:

Accrued wages are the wages expense which is incurred and no been paid yet. This expense is recorded as follow

Dr.  Wages Expense   $xxx

Cr.  Wages Payable    $xxx

Expense ultimately settles in the equity balance through net income and retained earning. It decreases the net income, retained earning and equity balance as well.

On the other hand the wages payable is a liability account, due to credit nature a credit entry will increase its balance.

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kirza4 [7]

If the interest rates on all bonds rise from 5 to 6 percent over the course of the year, a bond with one year to maturity would be preferred to have been holding.

A bond is a debt instrument similar to a promissory note. Borrowers issue bonds to raise money from investors who lend them money for a period of time. When you buy a bond, you are lending it to the issuer, which can be a government, community, or corporation.

Simply put, a bond is a loan from an investor to a borrower, such as a corporation or government. Borrowers use the money to fund their businesses, and investors earn interest on their investments. The market value of bonds can change over time.

Bonds are issued when governments and companies want to raise money. By purchasing a bond, you are providing a loan to the issuer, who agrees to repay the face value of the loan by a specified date and pay periodic interest, usually twice a year pay.

Learn more about Bonds here: brainly.com/question/25596583

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2 years ago
What does "pivoting" mean in the process of concept development?
olga55 [171]

Answer:

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Explanation:

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