Why do salary expenses need to be accrued at the financial reporting date?
A) Salaries incurred are an actual expense for the time period in which they are accrued.
B) If not accrued the company will not have to pay the amounts in the future.
C) The liability account will be overstated if not accrued.
D) The expense account will be overstated if not accrued.

Question

Quizplus · Accepted Answer

Salaries incurred are an actual expense for the time period in which they are accrued, reflecting the matching principle of accounting, which states that expenses should be recognized in the period in which they are incurred to generate revenues.

Why Do Salary Expenses Need to Be Accrued at the Financial