Multiple Choice
Which of the following statements about controllable costs is FALSE?
24
views
1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following best describes the Salaries Payable account?
A
An equity account that increases with each salary payment.
B
An expense account that records total salary expenses for the period.
C
A liability account that represents salaries owed to employees but not yet paid.
D
An asset account that tracks cash paid to employees.
Verified step by step guidance1
Understand the nature of the Salaries Payable account: It represents amounts owed to employees for work they have completed but have not yet been paid for. This makes it a liability account.
Recall the definition of a liability account: A liability is an obligation that the company owes to external parties, such as employees, suppliers, or lenders.
Differentiate between liability, equity, expense, and asset accounts: Liability accounts track obligations, equity accounts represent ownership interest, expense accounts record costs incurred, and asset accounts track resources owned by the company.
Analyze the options provided: The correct description aligns with the definition of a liability account, as Salaries Payable represents unpaid salaries owed to employees.
Conclude that Salaries Payable is not an equity, expense, or asset account, but rather a liability account because it reflects obligations to pay employees for services rendered.
4:10mWatch next
Master Types of Accounting: Financial and Managerial with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Types of Accounting practice set
Problem sets built by lead tutorsExpert video explanations