McNeil Company Owed Its Employees for Services Performed and Recorded

question 90

Multiple Choice

McNeil Company owed its employees for services performed and recorded a liability for the wages owed the employees.Which of the following correctly describes the impact on the financial statements when the employee wages are subsequently paid?

• A)Operating expenses are increased.
• B)Retained earnings decreases.
• C)Operating income does not change.
• D)Total assets remain the same.