Abbott Co Has 5 Employees Who Worked the Entire Year

question 79

Multiple Choice

Abbott Co. has 5 employees who worked the entire year. Each employee earns 6 paid vacation days annually. Vacation days may be taken during December of 2016 and all of 2017. All unused vacation days are paid when the employee leaves the company. The daily wage in 2016 per employee is $100. This is an example of

• A)a definite liability.
• B)a third party liability.
• C)a gain contingency.
• D)unearned revenue.

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Definitions:

Board Of Directors

A group of individuals elected to represent shareholders and oversee the major decisions and policies of a company.

Par Value

Par Value is the face value of a bond or a stock as stated by the issuing company, which may not reflect the actual market value.

Market Value

The current price at which an asset or service can be bought or sold in a market.

Own Name

The legal identification used by an individual or entity for conducting transactions or signing contracts.