The purpose of recording an adjusting entry for salaries and wages is to record wages:
A)incurred but not yet paid.
B)paid during the accounting period.
C)paid in the prior accounting period.
D)to be incurred in the next accounting period.

Question

Quizplus · Accepted Answer

Although the amount due to employees will not be paid until after the accounting period ends,the expense relates to work done (and revenues generated)during the accounting period,so the expense recognition principle ("matching")requires an adjustment be made to accrue the wages incurred and owed by the company.

The Purpose of Recording an Adjusting Entry for Salaries and Wages