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.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 5MC

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QUESTION 36

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.

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