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Which statement best describes the accrual for outstanding salaries at year end?

A Debit salary expense, credit salaries payable
B Debit salaries payable, credit cash
C Debit cash, credit salary expense
D No entry is required until payment

Answer

Debit salary expense, credit salaries payable

The expense belongs to the period in which the work was performed, and the unpaid amount is recognised as a current liability at the reporting date.

All Accounting MCQs

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