Outstanding Salaries for the current year is shown:A. In the Opening Balance Sheet, as an assetB. In the Closing Balance Sheet, as an assetC. In the I - Accountancy MCQ CUET Accountancy 2022 15 July Shift 2 2026 | ExamTest.live

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Outstanding Salaries for the current year is shown:A. In the Opening Balance Sheet, as an assetB. In the Closing Balance Sheet, as an assetC. In the Income and Expenditure A/c by adding to the expense 'salary'D. In the Closing Balance Sheet, as a liabilityChoose the correct answer from the options given below:

Solution & Step-by-step Explanation

Under the accrual concept of accounting:Current year's outstanding salaries are added to the salaries expense in the Income and Expenditure Account (Statement C).Since it represents an obligation to pay in the future, it is shown on the liabilities side of the closing Balance Sheet (Statement D).

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Outstanding Salaries for the current year is shown:A. In the Opening Balance Sheet, as an assetB. In the Closing Balance Sheet, as an assetC. In the Income and Expenditure A/c by adding to the expense 'salary'D. In the Closing Balance Sheet, as a liabilityChoose the correct answer from the options given below:

B only

B and C only

C only

C and D only

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