Salaries are an Expense

Expense is one of the categories of accounts that are used in accounting. Salaries are a type of expense incurred by a business or organization in order to compensate employees for their work. Therefore, the correct answer is option 'B' which states that salaries are an expense.

Explanation

To understand why salaries are considered an expense, it's important to define what an expense is. An expense is any cost that a business incurs in order to generate revenue. Salaries are a cost that a business incurs in order to compensate its employees for their work. Therefore, salaries are classified as an expense.

Salaries are not an asset because assets are resources that a business owns and controls that can be used to generate revenue. While employees are a valuable resource for a business, they are not owned or controlled by the business in the same way that physical assets, such as equipment or property, are owned and controlled.

Salaries are not a liability because a liability is a debt or obligation that a business owes to another party. While a business may owe its employees wages for work that has been completed, this is not considered a liability in accounting terms because the employee is not a separate entity from the business.

Conclusion

In conclusion, salaries are classified as an expense because they are a cost that a business incurs in order to compensate its employees for their work. Expenses are one of the categories of accounts used in accounting to track the costs associated with generating revenue.