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.

Understand the role and impact of legislation and policies on the United States' preparation for and participation in World War II.

Recognize the significance of key historical events and their dates during World War II.

Evaluate the effectiveness of the Allied conferences in shaping post-war geopolitics.

Assess the impact of World War II on American industry and economic practices.

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Definitions:

Payable

This term refers to an amount of money that is due to be paid.

Compounded Annually

Interest on an investment that is calculated once a year, where the interest earned each year is added to the principal.

Loan Principal

The initial amount of money borrowed in a loan, excluding interest and other charges.

42 Months

A time period equal to three and a half years.