Asked by Devendra Suthar on Jun 15, 2024
Verified
Paid wages
A) Increase assets, increase liabilities
B) Increase liabilities, decrease owner's equity
C) Increase assets, increase owner's equity
D) No effect
E) Decrease assets, decrease liabilities
F) Decrease assets, decrease owner's equity
Paid Wages
Refer to the sum of money paid to employees as compensation for their labor, including salaries, hourly wages, and commissions.
- Ascertain the effect that financial transactions exert on the accounting equation.
Verified Answer
RS
Ruthson SeideJun 20, 2024
Final Answer :
F
Explanation :
Paying wages decreases assets (cash goes out) and decreases owner's equity (expenses reduce equity).
Learning Objectives
- Ascertain the effect that financial transactions exert on the accounting equation.