At the end of the period we must make an adjusting entry for accrued salary expense to

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$$

balance the adjusted trial balance

make sure we don't spend the cash owed to employees

reconcile the cash account

report all our salary expense of the period

$.$

The unpaid salary expense is our

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$$

asset owed from employees

expense in the future

liability to employees

$.$

If we fail to make this$$ adjustment, we

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$$

overstate both expenses and liabilities

overstate expenses

overstate liabilities

understate both expenses and liabilities

understate expenses

understate liabilities

$.$

As a result we would

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$$

overstate cash and expenses

overstate net income and retained earnings

understate cash and expenses

understate net income and retained earnings

on our financial statements.