Yang Company recognized accrued salary expense. The recognition will affect which of the following financial statements?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter2: Introduction To Financial Statements
Section: Chapter Questions
Problem 12Q: Explain the purpose of the statement of cash flows and why this statement is needed.
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Yang Company recognized accrued salary expense. The recognition will affect which of the following financial statements?

Balance sheet
Income statement
Income statement and the balance sheet
Statement of cash flows
Transcribed Image Text:Balance sheet Income statement Income statement and the balance sheet Statement of cash flows
Expert Solution
Step 1

Accrual Accounting:

Accrual accounting is a concept, in which all the revenues and expenses related to a specific accounting period are recorded in the same accounting period, irrespective of the cash transactions.

 

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