How does a debit balance in the payroll taxes expense account affect a firm's income statement?
Question:
How does a debit balance in the payroll taxes expense account affect a firm's income statement?
Multiple Choice
A debit balance will increase the income of the firm's income statement. This will increase the total expenses of the firm and increase the net income of the firm.
A debit balance will increase the expenses of the firm's income statement. This will increase the total expenses of the firm and decrease the net income of the firm.
A debit balance will decrease the expenses of the firm's income statement. This will increase the total incomes of the firm and decrease the net income of the firm.
A debit balance will increase the expenses of the firm's income statement. This will decrease the total expenses of the firm and increase the net income of the firm.
Expert Answer:
The detailed answer for the above question is provided below A debit balance in the payroll ... View the full answer
Accounting What the Numbers Mean
ISBN: 978-1260565492
12th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
