Wages Payable is a liability account which indicates wages that a company must pay to the hourly applicable employees who have rendered services that are not compensated yet. Such unpaid wages are brought in books at the end of an accounting period to make sure that the expenditure gets the corresponding revenues that it assisted in getting. Wages payable is also a current liability in the balance sheet since the company would pay them soon. This bookkeeping entry makes the financial reporting transparent and assists in meeting the accrual accounting standards.

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