To Properly Recognize the Expense Associated with Compensated Absences, a Company

question 22

Multiple Choice

To properly recognize the expense associated with compensated absences, a company should

• A) Expense these obligations in the period the employee is absent
• B) Estimate and expense these obligations when a new employee is hired
• C) Estimate and expense these obligations in the period that the employee earns those days
• D) Not recognize any expense for compensated absences

---

Definitions:

Emotional Roots

The underlying emotional causes or bases for behaviors, thoughts, or feelings, often linked to past experiences.

Just-World Phenomenon

The cognitive bias to believe that the world is fundamentally fair, leading people to rationalize an unjust situation as deserved by the victim.

Bergen-Belsen

A Nazi concentration camp in Germany, notorious for its role in the Holocaust and the deaths of thousands due to starvation, disease, and mistreatment.

Social-Responsibility Norm

A societal expectation that people will help those in need or those dependent upon them.