For a Month's Transactions for a Typical Medium-Sized Business, the Salary

question 168

True/False

For a month's transactions for a typical medium-sized business, the salary expense account is likely to have only credit entries.

---

Definitions:

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the preparation of financial statements in the U.S.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that guide companies in preparing financial statements globally.

Cash-Basis Accounting

An accounting method where revenues and expenses are recorded only when cash is received or paid, irrespective of when the transactions occurred.

General Journal

A primary accounting record used to record all types of accounting transactions including both debits and credits.