Question

What is an example of an entry that records the payment of salaries by a business?

Debit salary expense and credit owner’s equity

Debit salary expense and credit cash

Debit cash and credit salary expense

Debit liabilities and credit salary expense

Answer 1

The correct entry that records the payment of salaries by a business is:

**Debit salary expense and credit cash**

This entry reflects the expense incurred for salaries (debited to salary expense) and the outflow of cash to pay those salaries (credited to cash).