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Are wages expenses an asset or liability?
Neither, it is an expense, a negative entry in the company´s Profit and Loss, thus decreasing its Equity position.
If only one person in the household is working can they garnish that person's wages for a voluntary repo and can they take your house if you have equity?
Only if that person is on the contract cosigner etc. and no they cant take your house.
Is vacation pay considered a supplemental payment?
Yes, vacation pay is considered a supplemental payment as it is an additional form of compensation provided to employees beyond their regular wages or salary.
Are wages earned by employees but not yet paid an accrued liability?
They are accounts payable, much like your electric bill you pay at the end of the month your employees have done all of this work for your that you have yet to pay for; like all the electricity you used in the month.
Is capital gain considered earned income?
No, capital gain is not considered earned income. Earned income is typically derived from wages, salaries, and self-employment, while capital gains come from the sale of investments or assets.
Is wages expense a asset liability or owners equity?
neither
Are wage expense considered a current liability?
Generally NO, wages are an expense. The only exception to the rule is if a company has "wages payable" which is wages that they owe but have not yet paid, "wages payable" is a liability until they are paid. Once paid, the account is closed into wage expense and is listed under the asset column of the Trial Balance sheet, until the end of the accounting cycle when expense accounts are closed out for the year end.
Are wages expenses an asset or liability?
Neither, it is an expense, a negative entry in the company´s Profit and Loss, thus decreasing its Equity position.
Is Wages payable a liability?
Yes any payable is liability of business in this way wages payable is also liability.
Is accrued wages an asset or liability?
Accrued wages are considered a liability. They represent the amount a company owes to its employees for work performed but not yet paid, reflecting an obligation to disburse cash in the future. This amount is recorded on the balance sheet under current liabilities until the wages are paid.
Are wages on the credit or debit entry on the trial balance?
Wages are typically recorded as an expense, which means they appear as a debit entry on the trial balance. In accounting, expenses increase on the debit side, while liabilities and equity increase on the credit side. Therefore, when wages are paid or incurred, they are debited to the wages expense account, reflecting a reduction in net income.
Which liability account would hold the balance of wages due but not yet paid?
Wages payable account is shown under liability section for those wages which are due but not yet paid
Is wage a liability?
Yes any payable is liability of business in this way wages payable is also liability.
The entry to adjust the accounts for wages accrued at the end of the accounting period is?
wages expense and wages payable
Why does cash paid employees for salaries and wages go on balance sheet?
Cash paid to employees for salaries and wages does not appear on the balance sheet as a separate line item because it is considered an expense that affects the income statement. When salaries and wages are paid, cash (an asset) decreases while expenses increase, impacting net income. However, any unpaid salaries and wages at the end of the accounting period would be recorded as a current liability on the balance sheet, reflecting the obligation to pay employees.
Why are retained earnings reported as part of shareholders' equity?
Retained earnings is part of shareholders' equity. It is considered part of equity because it represents the profits that are retained in the company to fund growth. If a company would have paid out all past profits as dividend, then total assets (cash) would be lower, and retained earnings would have a zero balance. Because net income is computed after claims of third parties (interest, wages, etc), there is no claim of third parties on profits that are retained. So, retained earnings are not a liability.
Are Accrued wages a current liability?
Accrued liabilities are a current liability if they are due within one year.
