A Company Gives Each of Its 100 Employees (Assume They

question 72

Multiple Choice

A company gives each of its 100 employees (assume they were all employed continuously through 2016 and 2017) 12 days of vacation a year if they are employed at the end of the year.The vacation accumulates and may be taken starting January 1 of the next year.The employees work 8 hours per day.In 2016,they made $17.50 per hour and in 2017 they made $20 per hour.During 2017,they took an average of 9 days of vacation each.The company's policy is to record the liability existing at the end of each year at the wage rate for that year.What amount of vacation liability would be reflected on the 2016 and 2017 balance sheets,respectively?

• A)$168,000; $234,000
• B)$192,000; $234,000
• C)$168,000; $240,000
• D)$192,000; $240,000

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Definitions:

Managerial Quality

The effectiveness and capability of managers in leading and making decisions that contribute to the success of an organization.

Vision

A statement or idea about what the future looks like, often used by organizations to guide long-term planning and decision-making.

Marketplace Needs

are the requirements and desires of consumers in a particular market segment, which businesses seek to satisfy through the development and offering of products or services.

Mental Exercises

Activities or practices that engage the brain, aiming to improve cognitive functions, memory, creativity, or problem-solving skills.