Before an adjusting entry for accrued salaries is made, the amount in Salaries Expense is understated and the amount in Salaries Payable is also understated.

Question

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This is because accrued salaries represent the portion of salaries earned by employees but not yet paid. Therefore, until an adjusting entry is made to recognize this expense and liability, both Salaries Expense and Salaries Payable will be understated.

Before an Adjusting Entry for Accrued Salaries Is Made, the Amount