Wages On Income Statement Or Balance Sheet

The balance sheet shows a company s total value while the income statement shows whether a company is generating a profit or a loss.

Wages on income statement or balance sheet. Salaries and wages of a company s employees working in nonmanufacturing functions e g. For example the period may be a month a quarter or a year. Any salaries owed by not yet paid would appear as a current. It goes on its balance sheet.

There are a variety of financial. Salaries do not appear directly on a balance sheet because the balance sheet only covers the current assets liabilities and owners equity of the company. However the income statement uses revenues and expenses to generate a profit or loss figure. Selling general administration etc are part of the expenses reported on the company s income statement.

Wages payable and other payable accounts are recorded in the current liabilities. Balance sheets function like a snapshot of the financial state of the company at a given point in time. Wages payable does not go on a company s income statement. Meanwhile people often compare a company s balance sheet to others in the same business.

Salaries and wages as expenses on income statement. Salaries wages and expenses on a balance sheet. An income statement shows revenues and expenses over a period of time.