An Important Consideration in Evaluating the Fairness of the Amounts

question 26

Multiple Choice

An important consideration in evaluating the fairness of the amounts accrued for vacation pay,sick pay,and other benefits is the

• A)consistent accrual of these liabilities relative to those of the preceding year.
• B)actual expense incurred for the prior period.
• C)amount expended to date in the current period.
• D)profitability of the client,which will enable these liabilities to be met.

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Definitions:

Car Accidents

Unplanned events involving vehicles on the road that result in damage, injury, or loss of life.

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method or decision.

Sole Responsibility

A situation or task where one person is entirely accountable without sharing duties or blame with others.

Recall

A measure of memory in which the person must retrieve information learned earlier, as on a fill-in-the-blank test.