The Amount of the Liability for Compensated Absences Should Be

question 167

Multiple Choice

The amount of the liability for compensated absences should be based on1. the current rates of pay in effect when employees earn the right to compensated absences.2. the future rates of pay expected to be paid when employees use compensated time.3. the present value of the amount expected to be paid in future periods.

• A) 1.
• B) 2.
• C) 3.
• D) Either 1 or 2 is acceptable.

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Definitions:

Prenatal Development

The progression of maturation and advancement inside the uterus from the point of conception until delivery.

Cognitive Behavior

A psychological concept that refers to thoughts, beliefs, and attitudes influencing how people perceive and react to the world around them.

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The front part of the brain associated with complex cognitive functions, including planning, reasoning, and impulse control.