As the controller of Chardon Consulting, you have hired a new employee, whom you must train. She objects to making an adjustin

Question

15 days ago

7

As the controller of Chardon Consulting, you have hired a new employee, whom you must train. She objects to making an adjustin

g 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.

Business

1 answer:

arsen [2.9K] · Answer 1 · 2026-03-20T17:53:13+03:00

Explanation:

It is not accurate to record an expense only when payment is made, as maintaining proper accounting within an organization is crucial for documentation and control over its financial transactions. This allows firms to gain insights and make informed decisions based on the company's current state.

Consequently, every income and expense for that period needs to be documented to reflect the true financial activities of the organization during that time frame.

As the controller of Chardon​ Consulting, you have hired a new​ employee, whom you must train. She objects to making an adjustin

As the controller of Chardon Consulting, you have hired a new employee, whom you must train. She objects to making an adjustin