Answer
Wages and salaries paid during the accounting period also include salaries and wages unpaid to the end of the previous accounting period. Thus, this amount should be subtracted from wages and salaries of the current period because it is affiliated with the previous period. In close relation, wages and salaries paid/settled during the year will not include wages and salaries affiliated with hours of labor during the current period but not actually settled until the next accounting period. This should be included (added) while determining wages and salaries expense.
Work Step by Step
Wages and salaries paid during the accounting period also include salaries and wages unpaid to the end of the previous accounting period. Thus, this amount should be subtracted from wages and salaries of the current period because it is affiliated with the previous period. In close relation, wages and salaries paid/settled during the year will not include wages and salaries affiliated with hours of labor during the current period but not actually settled until the next accounting period. This should be included (added) while determining wages and salaries expense.
