Which entry records wages expense of $3,000?

Study for the Accounting CBE Exam. Gain insights with flashcards and multiple-choice questions, each paired with detailed explanations. Prepare for your accounting certification!

Multiple Choice

Which entry records wages expense of $3,000?

Explanation:
When you record wages, you’re recognizing an expense and reducing cash. Expenses increase with a debit, and cash (an asset) decreases with a credit. So the correct entry is a debit to Wages Expense for 3,000 and a credit to Cash for 3,000. This shows the cost being incurred and the cash outflow, keeping the accounting equation in balance. Other formats would imply the opposite effects (increasing cash or decreasing the expense) which don’t match the transaction.

When you record wages, you’re recognizing an expense and reducing cash. Expenses increase with a debit, and cash (an asset) decreases with a credit. So the correct entry is a debit to Wages Expense for 3,000 and a credit to Cash for 3,000. This shows the cost being incurred and the cash outflow, keeping the accounting equation in balance. Other formats would imply the opposite effects (increasing cash or decreasing the expense) which don’t match the transaction.

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