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Most Accounting Systems Evolve as the Business Grows and Requires

question 94

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Most accounting systems evolve as the business grows and requires changes in its methods for collecting, accumulating, and reporting information.


Definitions:

Salaries Payable

An account representing the owed but not yet paid salaries to employees at the end of a period.

Salary Expense

Salary expense refers to the total amount paid by an employer to its employees for work performed during a specific period, which is reported on the income statement.

Cash Paid

Amounts of cash disbursed by a business for various purposes, including operating expenses, asset purchases, and debt repayments.

Free Cash Flow

A financial metric indicating the amount of cash generated by a company after accounting for capital expenditures.

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