Asked by Grace Thomas on Jul 05, 2024
Verified
Working capital decreases when accrued wages expense is recorded at year-end.
Accrued Wages Expense
Costs incurred by a company for wages that have been earned by employees but have not yet been paid.
- Understand the influence of liabilities on working capital and liquidity levels.
Verified Answer
SS
Simanjot shahiJul 06, 2024
Final Answer :
True
Explanation :
Accrued wages expense is a liability that is recorded when wages have been earned by employees but have not been paid yet. This increases the company's current liabilities and decreases its working capital.
Learning Objectives
- Understand the influence of liabilities on working capital and liquidity levels.