What entry records wages paid to employees when payment occurs?

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Multiple Choice

What entry records wages paid to employees when payment occurs?

Explanation:
When wages are paid, you settle what you previously owed and reduce cash. If wages have already been recorded as an expense when earned, paying them now should not increase expense again. The proper entry is to debit Wages Payable (to reduce the liability) and credit Cash (to reflect the cash outflow). Debiting Wages Expense would improperly recognize an expense a second time, debiting Cash would increase assets instead of decreasing them, and debiting Wages Revenue has no relevance to payroll.

When wages are paid, you settle what you previously owed and reduce cash. If wages have already been recorded as an expense when earned, paying them now should not increase expense again. The proper entry is to debit Wages Payable (to reduce the liability) and credit Cash (to reflect the cash outflow). Debiting Wages Expense would improperly recognize an expense a second time, debiting Cash would increase assets instead of decreasing them, and debiting Wages Revenue has no relevance to payroll.

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