BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Expense accounts such as salaries or wages expense are used to record an employee’s gross earnings and a liability account such as salaries payable, wages payable, or accrued wages payable is used to record the net pay obligation to employees.

Detailed explanation-2: -The taxes payable, wages payable, and other deductions (that the employer has collected from the employee) appear on the balance sheet as current liabilities. Current liabilities that relate to payroll are shown with actual numbers on the balance sheet.

Detailed explanation-3: -Payroll affects every aspect of the accounting equation. In the most straightforward sense, money spent on payroll is money that offsets revenue and leads to lower net profit, fewer assets and increased liabilities.

Detailed explanation-4: -The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company’s financial strength and provide a quick picture of a company’s financial health and underlying value.