The Classification and Normal Balance of the Salaries Expense Account

question 56

Multiple Choice

The classification and normal balance of the salaries expense account is:

• A) an expense with a credit balance
• B) a liability with a debit balance
• C) an asset with a debit balance
• D) an expense with a debit balance

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Definitions:

Monthly Payment

The amount paid each month on a loan, mortgage, or other debt obligation.

APR

Annual Percentage Rate; the annual rate charged for borrowing or earned through an investment, accounting for fees and compound interest.

APR Discount Rate

The annual percentage rate that represents the actual yearly cost of funds over the term of a loan, including any fees or additional costs associated with the transaction.

Monthly Payments

Regular payments made over a specified period of time towards the settlement of a debt obligation, typically calculated on an amortization schedule.