Cash payments to employees equals salary expense plus the:

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The decrease in salary payable represents the amount that was paid to employees during the period. Salary expense is recorded when the work is performed, but the actual cash payment to employees is only recorded when it is paid. Therefore, cash payments to employees equal salary expense plus the decrease in salary payable. The increase in salary payable would represent the amount owed to employees that has not yet been paid, and the beginning and ending balances in salary payable are not directly related to cash payments made during the period.

Cash Payments to Employees Equals Salary Expense Plus The