Which of the Following Criteria Is Not Required for the Recognition

question 62

Multiple Choice

Which of the following criteria is not required for the recognition of a liability for compensated absences under FASB ASC Topic 710?

• A) The amount of the obligation must be estimable.
• B) Payment of the obligation must be probable.
• C) Payment of the obligation will require the use of current assets.
• D) The compensation either vests with the employee or can be carried forward to subsequent years.

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Definitions:

Commercial Paper

A written promise from one company to another to pay a specific amount of money.

Accounts Receivable

Funds that are due to a company by customers who have purchased goods or services on credit.