For each transaction select the letter of the type of adjustment that would be required
-The cost of salaries earned by employees, but not paid at the end of the accounting period is recorded
A)Deferred expense
B)Deferred revenue
C)Accrued liability
D)Accrued asset

Question

Quizplus · Accepted Answer

This transaction represents an accrued liability, meaning that the company owes money to its employees for the salaries that have been earned but not yet paid. A deferred expense would be for a payment made in advance of the expense being incurred, while a deferred revenue would be for money received in advance of the revenue being earned. An accrued asset would be for money that the company has earned but not yet received.

For Each Transaction Select the Letter of the Type of Adjustment