Pandora Company Determined That It Has an Obligation Relating to Employees

question 78

Multiple Choice

Pandora Company determined that it has an obligation relating to employees' rights to receive compensation for future absences attributable to employees services already rendered.The obligation relates to rights that vest,and payment of the compensation is probable.The amounts of Pandora's obligations as of December 31 are reasonably estimated as follows:

In its December 31 balance sheet,what amount should Pandora report as its liability for compensated absences?

• A)$190,000
• B)$110,000
• C)$80,000
• D)$0

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Definitions:

Rank Order

A method of arranging data points based on their value, from highest to lowest or vice versa.

Measurement

The process or the result of determining the size, length, or amount of something, usually according to a set of standard units.

Nominal Scale

A classification system where numerical or non-numerical data are categorized without a natural order or ranking.

Measurement

The process of quantifying the characteristics of phenomena observed, usually by assigning numbers in a valid and reliable way.