How accrued payroll affects the balances sheet?



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If your company pays salary then the statements affected are cash in Baloance sheet & operating expenses in income statement. How accrued payroll affects the balances sheet? salaries paid is revenue expenditure. How it can affect Balance sheet

2 Answer(s)


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Accrued payroll would be wages, salaries, commissions, bonuses, and the related payroll taxes and benefits that have been earned by a company’s employees, but have not yet been paid or recorded in the company’s accounts.

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Before this salary is actually paid, it is accumulated/accrued and shows up under the accrued payroll item. Once the salary is paid, then this account will made zero.