A company uses the accrual basis of accounting. The company has$7,800 of accrued salaries...

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Accounting

A company uses the accrual basis of accounting. The company has$7,800 of accrued salaries for this period, that won’t be paiduntil the next period. It was decided not to record the adjustingentry in this period; After all, sooner or later the expense willbe reported. How does this decision impact the financial reporting?Does it really matter if they record it in another period? Pleaseanswer both questions and be specific and detailed in yourresponse. Give examples.?

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The accrual basis of accounting recognizes expenses in the period in which they are incurred irrespective of the period in which they are paid Adjusting entries are recorded at the period end to record all such expenses that have accrued during the period but remain unpaid by See Answer

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In: AccountingA company uses the accrual basis of accounting. The company has$7,800 of accrued salaries for...A company uses the accrual basis of accounting. The company has$7,800 of accrued salaries for this period, that won’t be paiduntil the next period. It was decided not to record the adjustingentry in this period; After all, sooner or later the expense willbe reported. How does this decision impact the financial reporting?Does it really matter if they record it in another period? Pleaseanswer both questions and be specific and detailed in yourresponse. Give examples.?