Is salaries expense an asset liability or equity?

Correct Answer: (d) expense

Salary Expense is classified as an expense. Expenses are reported in the income statement as deduction from total revenues to compute the net income for the period.

Is salaries expense an equity?

Answer and Explanation: A wage expense is classified as an expense that ultimately reduces the owner's equity.

Is salaries expense a liability?

Accounting for Wage Expenses

It is a liability account. When a wage expense is recorded it is a debit to the wage expenses account, which requires a credit to the wages payable account for the same amount until the wage is paid to the worker.

What is salaries expense classified as?

Salaries Expense will usually be an operating expense (as opposed to a nonoperating expense). Depending on the function performed by the salaried employee, Salaries Expense could be classified as an administrative expense or as a selling expense.

Is salaries expense an asset?

Explanation: Salary Expense is classified as an expense. Expenses are reported in the income statement as deduction from total revenues to compute the net income for the period.

Financial Accounting Definitions: Asset, Liability, Stockholder's Equity, Revenue,

Is salary an expense or asset?

Salary is an expense which incurred for the normal business operation. Its revenue expenses.

Where is salary expense on balance sheet?

Salaries and Wages Payable go on the balance sheet as a part of liabilities under the current liabilities.

Is salaries expense in balance sheet?

Salaries, wages and expenses don't appear directly on your balance sheet. However, they affect the numbers on your balance sheet because you'll have more available in assets if your expenditures are lower.

How do you record salary expense?

What part of account is salaries?

Salaries and wages are expenses incurred by the business during an accounting period. Therefore, it has to be shown on the debit side of the profit and loss account.

Is salaries expense a debit or credit?

Since Salaries are an expense, the Salary Expense is debited. Correspondingly, Salaries Payable are a Liability and is credited on the books of the company.

Why is salaries expense a debit?

Just like other expenses, salaries expense is a debit and not a credit, this is because it reduces the assets of a company and increases its liabilities. When employers pay their employees salaries, it is recorded as a debit to the salaries expense account and a credit to the cash account.

Are salaries expenses expense?

Salaries and Wages as Expenses on Income Statement

are part of the expenses reported on the company's income statement. Under the accrual method of accounting, the amounts are reported in the accounting period in which the employees earn the salaries and wages.

How do you record salary expenses?

Where is salary expense on balance sheet?

Salaries and Wages Payable go on the balance sheet as a part of liabilities under the current liabilities.

Is salaries expense in balance sheet?

Salaries, wages and expenses don't appear directly on your balance sheet. However, they affect the numbers on your balance sheet because you'll have more available in assets if your expenditures are lower.

Is salaries expense a debit or credit?

Since Salaries are an expense, the Salary Expense is debited. Correspondingly, Salaries Payable are a Liability and is credited on the books of the company.

Why is salaries expense a debit?

Just like other expenses, salaries expense is a debit and not a credit, this is because it reduces the assets of a company and increases its liabilities. When employers pay their employees salaries, it is recorded as a debit to the salaries expense account and a credit to the cash account.

How do I record salary expense in Quickbooks?

What is the journal entry for recording a salary expense?

Salary paid journal entry is to record the payment by the Employer to its employee. So, it will be a debit to the Salary or Salary Payable (if there is already an accrual of liability) and corresponding credit to the Bank account.

What part of account is salaries?

Salaries and wages are expenses incurred by the business during an accounting period. Therefore, it has to be shown on the debit side of the profit and loss account.