Under accrual accounting,salaries earned by employees but not yet paid should be expensed:
A)In the period in which they are earned.
B)In the period in which they are paid.
C)In the period with the higher earnings.
D)In the period with the lower earnings.

Question

Quizplus · Accepted Answer

Under accrual accounting, expenses should be recognized in the period in which they are earned or incurred, regardless of when they are paid. Therefore, salaries earned by employees but not yet paid should be expensed in the period in which they are earned.

Under Accrual Accounting,salaries Earned by Employees but Not Yet Paid