Are salaries liabilities or expenses?

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Beaudry 0 Comments

I have just learnings a bit accounting and I have quite a lot of questions. Are the salaries that a company pays both expenses and liabilities or just expenses?

1 Answer

score 0 · Answer 1 · 2012-12-02T19:37:55+00:00

I assume that you are referring to the salaries that company pays. In this case, the salaries are an expense (part of the payroll) so they are a debit.

The other entry (a credit) is either your cash or the liabilities if you haven’t yet paid out the salaries.