Multiple Choice Question

What will be the effect on the accounts when the salaries and wages that were incurred and recorded in the prior accounting period are finally paid?

Salaries and Wages Expense will decrease and Cash will decrease.

Salaries and Wages Expense will increase and Salaries and Wages Payable will decrease.

Salaries and Wages Payable will decrease and Cash will decrease.

Salaries and Wages Expense will increase and Cash will decrease.