When Recording the Costs Associated with a Postemployment Benefit of a Employer

question 23

Multiple Choice

When recording the costs associated with a postemployment benefit of a employer that was just laid off in the current period, a debit will be made to

• A) Salaries expense for the total estimated cost of the postemployment benefit
• B) Salaries expense for the current period cost of the unemployment benefit
• C) Benefits payable for the total estimated cost of the postemployment benefit
• D) Benefits payable for the current period cost of the unemployment benefit

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Definitions:

Judicial Dissolution

The process by which a court orders the dissolution or termination of an entity, such as a corporation or partnership, based on legal grounds.

LLC

Abbreviation for Limited Liability Company, a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Transferable Interest

The portion of a member's ownership in a limited liability company (LLC) that can be transferred or sold to other parties, typically including the right to receive financial distributions.

Default

Failure to fulfill a legal obligation, especially failure to pay a debt on time.