If you see Salaries expense on the income statement,you know that an adjustment related to accrual of employee salaries has been made.

Question

Quizplus · Accepted Answer

Salaries expense on the income statement reflects the total salary expenses incurred during a period, but it does not specifically indicate whether an adjustment for accrual of employee salaries has been made. Accrual adjustments are related to the timing of expense recognition and are not directly identifiable on the income statement.

If You See Salaries Expense on the Income Statement,you Know