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    saba999's Avatar
    saba999 Posts: 29, Reputation: 1
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    #1

    May 10, 2012, 01:47 PM
    Accrued expense
    Your company accrued $20,000 of salary expense at the end of Year 1, then paid $30,000 of salaries early in Year 2.How much salary expense applies to Years 1 and 2 respectively?
    a. $30,000 and $0
    b. $0, and $30,000
    c. $10,000 and $20,000
    d. $20,000 and $10,000

    I guess option "d" is correct .Can someone comment am I right?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    May 10, 2012, 11:27 PM
    Quote Originally Posted by saba999 View Post
    Your company accrued $20,000 of salary expense at the end of Year 1, then paid $30,000 of salaries early in Year 2.How much salary expense applies to Years 1 and 2 respectively?
    a. $30,000 and $0
    b. $0, and $30,000
    c. $10,000 and $20,000
    d. $20,000 and $10,000

    I guess option "d" is correct .Can someone comment am i right?
    You should not quess, accounting is not a guessing competition but is based on sound mathematics and logic

    Accrued expense means expense related to one period that will be paid in a subsequent period therefore 20,000 relates to period 1 and 10,000 relates to period 2

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