Total Payroll for a Given Week Is $12,000 $\begin{array}{l}\text { Estimated Liability for Vacation Pay }&840\\\text { Cash }&&840\end{array}$

question 151

Multiple Choice

Total payroll for a given week is $12,000.If 70 percent of the company's employees typically qualify to receive two weeks' paid vacation per year,assuming 50 working weeks,the entry to record the estimated liability for vacation pay for the week is:

• A)
• \(\begin{array}{l}
• \text { Estimated Liability for Vacation Pay }&840\\
• \text { Cash }&&840
• \end{array}\)
• B)
• \(\begin{array}{llr}
• \text { Vacation Pay Expense} &480\\
• \text { Cash } &&480\\
• \end{array}\)
• C)
• \(\begin{array}{llr}
• \text { Vacation Pay Expense } &336\\
• \text {Estimated Liability for Vacation Pay } &&336\\
• \end{array}\)
• D)
• \(\begin{array}{llr}
• \text { Cash} &168\\
• \text { Estimated Liability for Vacation Pay} &&168\\
• \end{array}\)

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Definitions:

Cereal

A food product made from processed grains, often eaten as breakfast and typically served cold with milk.

Price Elasticity of Demand

A measure of how responsive the quantity demanded of a good is to a change in its price, with higher elasticity indicating greater sensitivity.

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels over a specified time frame.

Price Elastic

Price elasticity refers to the degree to which the quantity demanded of a good or service changes in response to a change in its price.