Question

Which of these accounts shows the total gross earnings that the employer incurs as an expense each payday? a.Payroll Taxes b.Wages Expense c.Federal Income Taxes Payable d.Salaries Payable e.None of these choices are correct.

Answer 1

Answer:

b.Wages Expense

Explanation:

Since the question ask about the total gross earnings which to be incurred each pay as an expense i.e wages expense and will be shown in the debit side of the income statement

The income tax payable, salaries payable are considered to be the liabilities and are shown on the current liabilities of the balance sheet.

And the payroll taxes are some part of the income statement and some part of balance sheet