If an accrued liability for salaries is not recorded,income for the following period will be understated.

Question

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An accrued liability for salaries represents wages owed to employees for work performed but not yet paid. If this liability is not recorded, it means that wages expense for the period has been understated, which in turn means that net income has been overstated. Therefore, income for the following period will be understated.

If an Accrued Liability for Salaries Is Not Recorded,income for the Following