Since Vacation Time Is Paid When Used, There Is No

question 30

True/False

Since vacation time is paid when used, there is no need to accrue this time in a liability account at the end of each accounting period.

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Definitions:

Unilateral Contract

A promise made by one party in exchange for the performance of a task or action by another party.

Past Consideration

A benefit already provided or an action already performed, which cannot legally constitute consideration for a current contract.

Consideration

A value that is exchanged between parties in a contract, making the agreement legally binding.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another party, if the latter has reasonably relied on that promise to their detriment.