At the end of the ﬁnancial period, the payroll accountant records the _____ of the employee's pay that is earned but not yet paid; in the next ﬁnancial period, this entry is _____ .
A)Accrual; reversed
B)Reversal; accrued
C)Total; carried forward
D)Amount; deleted

Question

Quizplus · Accepted Answer

Accrual accounting involves recording expenses and revenues when they are incurred or earned, regardless of when the cash transactions occur. At the end of a financial period, the payroll accountant records the accrual of the employee's pay that is earned but not yet paid. In the next financial period, this entry is reversed to avoid double counting the expense when it is actually paid.

At the End of the ﬁNancial Period, the Payroll Accountant