Wages payable is the amount of money which a firm is owing its employees in respect of services already rendered by them but for which they have not been compensated. This liability generally is found on the balance sheet and is defined as wages, salaries, or other compensation that has still not been paid at the date of the report. For instance, if the employees are paid on a biweekly basis and the financial period closes before that, amount due to the employees is accrued as wages payable. It affirms the correctness in acknowledging expenditure by synchronizing them with the periods they were made.
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