Question on: JAMB Accounting - 2023
Salaries in arrears is treated in the balance sheet as a ___
A
current asset
B
current liability
C
long term liability
D
fixed asset
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Correct Option: B
Salaries in arrears represent unpaid salaries owed to employees for work already performed but not yet paid. Since these are amounts that the company owes to its employees and is expected to pay in the near future, they are categorized as a current liability on the balance sheet.
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