According to Current GAAP, Which of the Following Is Not

question 98

Multiple Choice

According to current GAAP, which of the following is not a condition suggesting that an accrual for vacation pay should be made?

• A) The obligation must relate to rights that vest.
• B) The payment of compensation is probable.
• C) The obligation must relate to employee services already rendered.
• D) The amount can be reasonably estimated.

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Definitions:

McGregor

Douglas McGregor, an American social psychologist who proposed the Theory X and Theory Y concepts of employee motivation and management.

Theory Y

A management concept based on the belief that employees are intrinsically motivated to work and can be trusted with responsibility and autonomy.

Participative Management

A management style that encourages the involvement and contribution of all employees in decision-making processes.

Equity Norm

The principle that individuals in a group should receive benefits proportional to their contributions.