Wages accrued is shown in the balance sheet as

Assessment: WAEC SSCE - Financial Accounting - 2021 (Objective) Subject: Financial Accounting

Question 1 Report

Wages accrued is shown in the balance sheet as 

Answer Details
Wages accrued is shown in the balance sheet as a liability. A liability is an amount that a company owes to someone else, such as employees for work that has been done but not yet paid for. Wages accrued is the amount of money that a company owes to its employees for the work they have done, but the payment has not yet been made. This means that the company has an obligation to pay the employees in the future, and this obligation is considered a liability on the balance sheet. In simple terms, the balance sheet is a snapshot of a company's financial position at a given point in time, and it lists all the assets, liabilities, and equity that the company has. Wages accrued is listed as a liability because it represents money that the company owes to others.
Read lesson note on Nature And Significance Of Accounting (JAMB)
Read lesson note on Principles Of Double Entry (JAMB)
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