The Correct Cutoff and Valuation of Accrued Salaries and Wages

Multiple Choice

The correct cutoff and valuation of accrued salaries and wages

A) is to calculate the exact hours of pay that were earned in the current period and paid in a subsequent period.
B) is to compute an approximate proportion of the wages that were earned in the current period and use that amount as the accrual.
C) allows the client to choose between A and B (above) each year.
D) depends on company policy and whether it is consistently followed.