Sun Smarts Solar installs solar panels in large newly constructed buildings. The company employs several expert installers who work on a full-time basis. Although the installation team works every day, the company pays them at the end of the month, for the previous month's work. Employee salaries are recorded as __________ on Sun Smarts's balance sheet.
A. capital cash flows
B. current liabilities
C. retained earnings
D. long-term liabilities

Sun Smarts Solar installs solar panels in large newly constructed buildings. The company employs several expert installers who work on a full-time basis. Although the installation team works every day, the company pays them at the end of the month, for the previous month's work. Employee salaries are recorded as long-term liabilities on Sun Smarts's balance sheet.

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marvineetesh3 marvineetesh3 · Answer 2 · 2022-04-29T09:02:42+02:00

Sun Smarts Solar company paid the salaries to their employees at the end of the next month, then the salary of the employees recorded as current liabilities on Sun Smarts's balance sheet.

What are the current liabilities?

Current liabilities are defined as any business liabilities that must be settled in cash during the fiscal year or the operating cycle of a company, whichever term is longer.

In the above case, the Sun Smarts Solar record the salaries of their employees on the balance sheet as the current liabilities, as these salaries will settle in cash within the operating cycle.

Therefore, option B is correct.

Learn more about the current liabilities, refer to:

https://brainly.com/question/14287268