Tryst Inc Has a Policy of Accruing $1,500 for Every Employee

question 142

Multiple Choice

Tryst Inc. has a policy of accruing $1,500 for every employee as a vacation benefit. Sarah, an employee, took a vacation. Which of the following is the correct journal entry for the vacation benefit paid?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Vacation Benefit Payable } & 1,250 & \\
• \hline \text { Vacation Benefit Expense } & & 1,250 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Vacation Benefit Expense } & 1,500 & \\
• \hline \text { Cash } & & 1,500 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Vacation Benefit Payable } & 1,500 & \\
• \hline \text { Cash } & & 1,500 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Vacation Benefit Expense } & 1,250 & \\
• \hline \text { Vacation Benefit Payable } & & 1,250 \\
• \hline
• \end{array}\]

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Definitions:

Sales Data

Sales data encompasses the records and information regarding the quantity, price, and characteristics of products or services sold by a company.

Percentage Increase

A measure of how much a quantity has grown relative to its previous value, expressed as a percentage.

Horizontal Analysis

A financial analysis technique that compares historical financial data across consecutive periods to identify trends and growth patterns.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) or income and expenses is represented as a proportion of a total account.