Which of the following describes the effects of a claims exchange transaction on a company's financial statements?

Question

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Recognizing accrued salary expense is a claims exchange transaction. The claims of creditors increase and the claims of stockholders decrease. Total claims remain unchanged. Specifically, the liabilities account, Salaries Payable, increases. The balance in the Salaries Payable account represents the amount of cash the company is required to pay the employee in the future. Recognizing salary expense decreases net income. There is no effect on the statement of cash flows because cash was not paid.

Which of the Following Describes the Effects of a Claims