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APA Exam CPP-Remote Topic 7 Question 49 Discussion

Actual exam question for APA's Certified Payroll Professional exam
Question #: 49
Topic #: 7
[All Certified Payroll Professional Questions]

What is the effect of failing to record salaries that are earned but not paid at the end of an accounting period?

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Suggested Answer: A

by Stephen at Jun 30, 2024, 09:14 AM

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Van
2 months ago
I'm scratching my head on this one. Guess I need to brush up on my accrual accounting. Oh well, time to dive into the books!
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Leota
2 months ago
D) overstatement of liabilities for the period
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Heike
2 months ago
C) understatement of assets for the period
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Tiara
2 months ago
B) overstatement of expenses for the period
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Detra
2 months ago
A) understatement of expenses for the period
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Stevie
3 months ago
B) overstatement of expenses for the period
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Lelia
3 months ago
Haha, I'm just hoping I don't get this question wrong and end up having to 'work for free' like these poor folks! D is the way to go.
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Linwood
24 days ago
D) overstatement of liabilities for the period
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Selma
26 days ago
C) understatement of assets for the period
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Makeda
29 days ago
B) overstatement of expenses for the period
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Ciara
1 months ago
A) understatement of expenses for the period
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Brett
1 months ago
D) overstatement of liabilities for the period
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Georgiann
2 months ago
C) understatement of assets for the period
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Gilma
2 months ago
B) overstatement of expenses for the period
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Ilona
2 months ago
A) understatement of expenses for the period
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Lashandra
3 months ago
I agree with Audry, not recording earned but unpaid salaries would make expenses appear lower than they actually are.
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Curt
3 months ago
I'm going with D. This is a classic accrual accounting principle. Gotta keep those books balanced, you know?
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Audry
3 months ago
A) understatement of expenses for the period
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Fabiola
3 months ago
B seems more logical to me. If you don't record the salaries, it would lead to an overstatement of expenses for the period.
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Sabrina
3 months ago
Definitely D. Unpaid salaries are liabilities that need to be recorded, so failing to do so will overstate the company's financial position.
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Annmarie
2 months ago
D) overstatement of liabilities for the period
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Lawana
2 months ago
C) understatement of assets for the period
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Craig
2 months ago
B) overstatement of expenses for the period
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Alpha
2 months ago
A) understatement of expenses for the period
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Karma
3 months ago
What is the effect of failing to record salaries that are earned but not paid at the end of an accounting period?
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Casie
3 months ago
Hmm, I think the correct answer is D. Overstatement of liabilities for the period. Unpaid salaries should be recorded as accrued liabilities.
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Paulina
3 months ago
I see your point, but I still think it's D. Overstatement of liabilities for the period.
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Delila
3 months ago
I disagree, I think the correct answer is A. Understatement of expenses for the period.
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Loise
3 months ago
No, I believe it is B. Overstatement of expenses for the period.
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Verona
3 months ago
I think the correct answer is A. Understatement of expenses for the period.
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