Wages and Salary Are Interchangeable Terms That Both Refer to the Amount

question 225

True/False

Wages and salary are interchangeable terms that both refer to the amount of money an employee is paid.

---

Definitions:

Debits

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or in its income statement.

Credits

An accounting entry that either increases liabilities and equity or decreases assets, reflective of the dual-entry bookkeeping system.

Rental Receipts

Income received from renting out property or equipment.

Unearned Revenue

Refers to payments received for products or services yet to be fulfilled, a liability on the balance sheet until delivery of service or product.