Accrued Salaries and Wages in a Balance Sheet Represent Salaries

question 5

True/False

Accrued salaries and wages in a balance sheet represent salaries and wages that have been earned by employees but not yet paid.

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Definitions:

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, which is reinvested in the business.

Annual Revenues

The total amount of money received by a company for goods sold or services provided during a fiscal year.

Net Income

The concluding profit figure for a company, arrived at by deducting every type of expense and tax from its complete revenue.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense since it was put into use, reflecting usage or wear and tear.