Explain how accrual accounting differs from cash-basis accounting; apply the revenue and expense recognition principles
Response to the following problem:
As the controller of Brumley Consulting, you have hired a new employee, whom you must train. She objects to making an adjusting entry for accrued salaries at the end of the period. She reasons, "We will pay the salaries soon. Why not wait until payment to record the expense?
In the end, the result will be the same." Write a reply to explain to the employee why the adjusting entry is needed for accrued salary expense.