Consider That You Are a Finance Manager, and One of Your

question 69

Essay

Consider that you are a finance manager, and one of your junior staff wanted an explanation of the term percentage of sales approach. Provide a definition that conveys what the term means from a finance perspective.

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Definitions:

Adjusting Journal Entries

Entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Closing Journal Entries

Entries made in the accounting records at the end of an accounting period to transfer balances from temporary to permanent accounts.

Salary Expense

An expense account that records the total amount of salary payments made to employees over a period of time.

Accrued Salaries

Salaries that have been incurred but not yet paid, representing a liability for the company.