Final answer:
When a company recognizes accrued salary expense, it means that the company has recorded an expense for wages that have been earned but not yet paid by the employees.
Step-by-step explanation:
When a company recognizes accrued salary expense, it means that the company has recorded an expense for wages that have been earned by the employees but have not yet been paid. This typically occurs when the company has a pay period that ends before the actual payday. By recognizing the accrued salary expense, the company is acknowledging its obligation to pay the employees for their work.
For example, let's say a company's pay period ends on the last day of the month, but the employees will not receive their paychecks until the following week. In this case, the company would recognize the accrued salary expense for the days worked by the employees in the current month, even though the actual payment will be made in the next month.
Recognizing accrued salary expense does not necessarily mean that the employees will receive a higher or lower salary. It simply means that the company is accounting for the wages that have been earned but not yet paid.