As the controller of Chardon Consulting, you have hired a new employee, whom you must train. She objects to making an adjusting entry for accrued salaries at the end of the period. She reasons, "We will pay the salaries soon. Why not wait until payment to record the expense? In the end, the result will be the same." Write a reply to explain to the employee why the adjusting entry is needed for accrued salary expense. At the end of the period we must make an adjusting entry for accrued salary expense to (balance the adjusted trial balance, make sure we don't spend the cash owed to employees, reconcile the cash account, report all our, salary expense of the period). The unpaid salary expense is our (assent owed from employees, expenses in the future, liability to employees). If we fail to make this adjustment, we (overstate both expenses and liabilities, overstate expenses, overstate liabilities, understate both expenses and liabilities, understate expenses, understate liabilities). As a result we would (overstate cash and expenses, overstate net income and retained earnings, understate cash and expenses, understate net income and retained earnings) on our financial statements. If there are parentheses with words inside, then those are blanks with answer choices.
As the controller of Chardon Consulting, you have hired a new employee, whom you must train. She objects to making an adjusting entry for accrued salaries at the end of the period. She reasons, "We will pay the salaries soon. Why not wait until payment to record the expense? In the end, the result will be the same." Write a reply to explain to the employee why the adjusting entry is needed for accrued salary expense. At the end of the period we must make an adjusting entry for accrued salary expense to (balance the adjusted trial balance, make sure we don't spend the cash owed to employees, reconcile the cash account, report all our, salary expense of the period). The unpaid salary expense is our (assent owed from employees, expenses in the future, liability to employees). If we fail to make this adjustment, we (overstate both expenses and liabilities, overstate expenses, overstate liabilities, understate both expenses and liabilities, understate expenses, understate liabilities). As a result we would (overstate cash and expenses, overstate net income and retained earnings, understate cash and expenses, understate net income and retained earnings) on our financial statements. If there are parentheses with words inside, then those are blanks with answer choices.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
As the controller of Chardon Consulting, you have hired a new employee, whom you must train. She objects to making an adjusting entry for accrued salaries at the end of the period. She reasons, "We will pay the salaries soon. Why not wait until payment to record the expense? In the end, the result will be the same." Write a reply to explain to the employee why the adjusting entry is needed for accrued salary expense.
At the end of the period we must make an adjusting entry for accrued salary expense to (balance the adjusted trial balance , make sure we don't spend the cash owed to employees, reconcile the cash account, report all our, salary expense of the period). The unpaid salary expense is our (assent owed from employees, expenses in the future, liability to employees).
If we fail to make this adjustment, we (overstate both expenses and liabilities, overstate expenses, overstate liabilities, understate both expenses and liabilities, understate expenses, understate liabilities). As a result we would (overstate cash and expenses, overstate net income andretained earnings , understate cash and expenses, understate net income and retained earnings) on our financial statements.
If we fail to make this adjustment, we (overstate both expenses and liabilities, overstate expenses, overstate liabilities, understate both expenses and liabilities, understate expenses, understate liabilities). As a result we would (overstate cash and expenses, overstate net income and
If there are parentheses with words inside, then those are blanks with answer choices.
Expert Solution
Step 1
Accrual expenses indicate the obligations of the corporation which requires to be paid off in the future.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education