Friday, October 9, 2020

Paying salaries to employees for the current period would have what effect on the accounting equation?

Paying salaries to employees for the current period would have what effect on the accounting equation?


A) Liabilities increase and stockholders' equity decreases.

B) Assets decrease and liabilities decrease.

C) Assets decrease and stockholders' equity decreases.

D) Liabilities decrease and stockholders' equity increases.


Answer: C

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