What effect does the adjusting entry recognizing accrued wages expense at the end of the accounting period have on the accounting equation? Assets decrease and shareholders’ equity decreases. Liabilities increase and shareholders’ equity decreases. Assets decrease and liabilities decrease. Liabilities decrease and shareholders’ equity decreases.
What effect does the adjusting entry recognizing accrued wages expense at the end of the accounting period have on the accounting equation? Assets decrease and shareholders’ equity decreases. Liabilities increase and shareholders’ equity decreases. Assets decrease and liabilities decrease. Liabilities decrease and shareholders’ equity decreases.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION 36
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What effect does the
adjusting entry recognizing accrued wages expense at the end of the accounting period have on theaccounting equation ?Assets decrease and shareholders’ equity decreases.
Liabilities increase and shareholders’ equity decreases.
Assets decrease and liabilities decrease.
Liabilities decrease and shareholders’ equity decreases.
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