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

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.