Question

Salaries expense appears in the

1) liabilities section of the statement of balance sheet
2) financing activities section of the statement of cashflows
3) asset section of the balance sheet
4) expense section of the income statement

Answer 1

Salaries expense is recorded in the expense section of the income statement, not in the liabilities or assets sections of the balance sheet, or in the financing activities section of the cash flow statement.

Step-by-step explanation:

Salaries expense appears in the expense section of the income statement. The income statement is a financial statement that shows a company's revenues, expenses, and net income. Salaries expense is considered an operating expense and is used to report the cost of wages and salaries paid to employees.

The question refers to where the 'salaries expense' item appears among the financial statements. Salaries expense does not appear in the liabilities section of the balance sheet, the financing activities section of the statement of cash flows, or the asset section of the balance sheet. It is, instead, recorded in the 'expense section of the income statement'.

The income statement is used to reflect the revenues and expenses of a company over a particular period, providing information about the company's profitability. Salaries are costs incurred by the company in the form of payments to employees and are considered operating expenses.