Laid Back Corp

question 56

Multiple Choice

Laid Back Corp.follows the practice of paying all employees for vacation.The vacation pay is not vested,but it carries over for one year if unused.Under GAAP,the obligation for earned but unused vacation should be

• A) accrued as a current liability.
• B) disclosed as a contingent liability.
• C) ignored until incurred.
• D) accrued or not accrued according to the judgment of management.

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Definitions:

Haworth Structure

A way of representing cyclic structures of sugars in a three-dimensional manner, showing the spatial arrangement of atoms.

α-Pyranose

A cyclic form of glucose where the molecule forms a six-membered ring structure.

Monosaccharides

The simplest form of carbohydrates, consisting of a single sugar molecule such as glucose or fructose.

Enediol Rearrangement

A chemical rearrangement involving the migration of double bonds along with hydrogen atoms, often seen in carbohydrate chemistry.