Similarities & Differences Between Salaries Expense And Accrued Salaries / Salaries Payable
1. Salaries Expense is the amount which is paid to the employees by the company in the current accounting period and it is called Indirect Expense categories under Operating Expense In Income Statement while Accrued Salaries is the amount payable at some future date to employees who already delivered their task for the respective tasks or projects, so it is a Current Liability shown on Balance Sheet . 2. Salaries and Salaries Payable are the two accounting terms used in the accounting period and these are changed with each other means that when the company paid salaries to employees in the current month, then it becomes Salaries Expense and when it is not paid eventhough the employees earned it then it becomes Salaries Payable. So, in the whole accounting period, either there is record for Salaries Expense or Salaries Payable in the Financial Statements . 3. Salaries Expense operates under Cash Basis of Accounting while Accrued Salaries works on Ac...