Question

Sun Smarts Solar installs solar panels in large newly constructed buildings. The company employs several expert installers who work on a full-time basis. Although the installation team works every day, the company pays them at the end of the month, for the previous month's work. Employee salaries are recorded as ___________ on Sun Smarts's balance sheet.

Answer 1

Answer:

The correct answer is 4) current liabilities

Explanation:

Current liabilities also are known current liabilities is the payment process that is recognized in the accounting of the company as short-term payments: These liabilities are used in companies to pay credits, debts and other debts that must be paid before the end of the cycle operating of the company.

For example, in the case of Sun Smarts Solar, they record the payments of their employees as current liabilities in their balance sheet, since it is a payment that must be made periodically, considered in the short term before the end of the operating cycle.

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