Answered

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 :

Zviko

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

Parrain

The financial statements that will be affected by this transaction are:

  • Balance Sheet.
  • Income statement.
  • Statement of Cashflows.

Effect on Financial statements

  • The Balance sheet will see a reduction in liabilities related to the accrued expense of the salary.
  • Income statement will recognize the salary expense.
  • Statement of Cashflows will recognize the decrease in liabilities.

In conclusion, several financial statements will be affected.

Find out more about accrued expenses at https://brainly.com/question/13450378.

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