Why Do Salary Expenses Need to Be Accrued at the Financial

question 92

Multiple Choice

Why do salary expenses need to be accrued at the financial reporting date?

• A) Salaries incurred are an actual expense for the time period in which they are accrued.
• B) If not accrued the company will not have to pay the amounts in the future.
• C) The liability account will be overstated if not accrued.
• D) The expense account will be overstated if not accrued.

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Definitions:

Needs Assessment

A process to identify and evaluate needs within a group or organization to determine necessary actions or solutions.

Stimulus-response Model

A communication or behavioral theory suggesting that an external stimulus can elicit a particular response from an individual or audience.

Sales Presentation

A promotional talk or demonstration given to introduce or describe a product or service to potential buyers, aiming to persuade them to make a purchase.

Black Box

A system or device where the inputs and outputs are known, but the internal workings are not visible or easily understood.