Under What Conditions Is an Employer Required to Accrue a Liability

question 120

Multiple Choice

Under what conditions is an employer required to accrue a liability for sick pay?

• A) Sick pay benefits can be reasonably estimated.
• B) Sick pay benefits vest.
• C) Sick pay benefits equal 100% of the pay.
• D) Sick pay benefits accumulate.

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Definitions:

Enforceable

Capable of being imposed or brought into effect legally, typically referring to contracts, agreements, or laws.

Offer

A proposal presented by one party to another with the intention to create a legally binding agreement upon acceptance.

Escrow Account

An escrow account is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction, ensuring fair and secure dealings.

Objective Theory

A legal principle stating that the terms of a contract are interpreted based on external expressions (actions, words) rather than internal intentions.