Which of the following choices accurately reflects how the recording of accrued salary expense affects the financial statements of a business?

A)Option A
B)Option B
C)Option C
D)Option D

Question

Which of the following choices accurately reflects how the recording of accrued salary expense affects the financial statements of a business?

A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Accruing salary expense increases liabilities (salaries payable)and increases expenses,which decreases net income and equity (retained earnings).It does not affect cash flows.

Which of the Following Choices Accurately Reflects How the Recording