Accrued compensation increase shouldn't correspond to it being expensed?

Working through the M&I 400 guide - I'm lost as to why the accrued comp increasing should mean that the expense is being recognized. Wouldn't it be the other way around? Since accrued comp is a liability, when we reduce the balance of accrued comp by actually paying the employees, that's when the expense is reflected in the IS?

 
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