When a Company Incurs Employee Salaries but Does Not Pay

question 71

Multiple Choice

When a company incurs employee salaries but does not pay them,how will the basic accounting equation be affected?

• A)Stockholders' equity decreases.
• B)Revenues decrease.
• C)Expenses decrease.
• D)Liabilities decrease.

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Definitions:

Insurance Claim

A formal request to an insurance company asking for payment based on the terms of an insurance policy.

Legislation

Laws and statutory regulations enacted by a government's legislative body.

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Occupiers' Liability Act

Legislation defining the duty of care owed by those who control land or buildings towards those who enter the premises.