The Payment of Salaries to Employees Would

question 164

Multiple Choice

The payment of salaries to employees would:

• A) increase assets and increase liabilities.
• B) decrease net income and decrease assets.
• C) increase liabilities and increase net income.
• D) decrease assets and increase liabilities.

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Definitions:

Functional Currency

The primary currency of the primary economic environment in which an entity operates and carries out its financial transactions.

Conditions

Circumstances or factors that affect the performance and outcomes of a business or agreement.

U.S. Dollar

The official currency of the United States of America, widely used as a benchmark and reserve currency globally.

Income Statement

A financial statement that shows a company’s revenue and expenses over a specific period, leading to the net income or loss for that period.