Laid Back Corp

question 56

Multiple Choice

Laid Back Corp.follows the practice of paying all employees for vacation.The vacation pay is not vested,but it carries over for one year if unused.Under GAAP,the obligation for earned but unused vacation should be

• A) accrued as a current liability.
• B) disclosed as a contingent liability.
• C) ignored until incurred.
• D) accrued or not accrued according to the judgment of management.

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Definitions:

Embarrassing Topics

Subjects that may cause discomfort, shame, or awkwardness when discussed, often due to personal or societal sensitivities.

Age

A measure of the length of time that a person or object has existed.

Level Of Education

A measure of the highest degree of formal schooling completed or the extent of academic achievement.

Causation

Refers to the relationship between cause and effect, where one action or event directly results in another.