Question

A company recognized an accrued salary expense in Year 1 and paid its employees in Year 2. The financial statements affected in Year 2 are the ______.

Answer 1

Answer:

Statement of Financial Position and Cash Flow Statement.

Explanation:

Year 2

1. Statement of Financial Position

Decrease the Liability : Salaries Owing

Decrease the Assets : Cash

2. Cash Flow Statement

Decrease in Liability : Cash Outflows

3. Income Statement

No Effect

4. Statement of Changes in Equity

No Effect