Salary expense plus amortization of deferred compensation expense for the year would equal cash paid for salaries.

Name: Salary expense plus amortization of deferred compensation expense for the year would equal cash paid for salaries.
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Question

Quizplus · Accepted Answer

Amortization of deferred compensation expense is a non-cash expense, meaning it does not involve actual cash outflow. Therefore, adding it to salary expense would overstate the cash paid for salaries.

Salary Expense Plus Amortization of Deferred Compensation Expense for the Year