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.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 3TP: Assume you are a newly-hired accountant for a local manufacturing firm. You have enjoyed working for...
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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.
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Accrual expenses indicate the obligations of the corporation which requires to be paid off in the future.
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