Question

Salaries & wages outstanding will be added to ________ account.

• A. Wages
• B. Assets
• C. Liabilities
• D. Salaries

Answer 1

The correct option is D Salaries

The entry to bring such expenses into account is:

Concerned Expense A/c

To Outstanding Expense A/c

The above entry opens a new account called Outstanding Expenses which is shown on the liabilities side of the balance sheet. The amount of outstanding expenses is added to the total expenses under a particular head for the purpose of preparing trading and profit and loss account. Salaries & wages outstanding will be added to the salaries account.