Wages Outstanding’ is appearing in the Trial Balance of a company. While preparing the Income Statement and Balance Sheet, ‘Wages Outstanding’ should appear in-

The correct answer is: A. the Balance Sheet only.

Wages outstanding are a liability of a company. They represent the amount of money that the company owes to its employees for work that has already been done. As such, they should be reported on the balance sheet as a current liability.

The income statement reports the company’s revenues and expenses for a specific period of time. Wages outstanding are not an expense, as they have not yet been paid. Therefore, they should not be reported on the income statement.

Here is a brief explanation of each option:

• Option A: The Balance Sheet only. This is the correct answer. Wages outstanding are a liability of a company and should be reported on the balance sheet as a current liability.
• Option B: The Income Statement only. This is incorrect. Wages outstanding are not an expense, as they have not yet been paid. Therefore, they should not be reported on the income statement.
• Option C: Both Income Statement and Balance Sheet. This is incorrect. Wages outstanding are a liability of a company and should be reported on the balance sheet as a current liability. They are not an expense, as they have not yet been paid. Therefore, they should not be reported on the income statement.
• Option D: Neither Income Statement nor Balance Sheet. This is incorrect. Wages outstanding are a liability of a company and should be reported on the balance sheet as a current liability.