Pandora Company Determined That It Has an Obligation Relating to Employees

question 51

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

---

Definitions:

Equal Status

A state or condition in which all participants or groups in a given situation are given the same rights, opportunities, and respect.

Social-Responsibility Norm

A societal expectation that people should help those who are dependent upon them or in need, fostering a sense of community and welfare.

Ingroup Bias

The tendency to favor and extend more positive judgments or treatment to members of one's own group over those outside the group.

Just-World Phenomenon

The cognitive bias to believe that the world is fundamentally fair, leading to attributing consequences to actions on a moral basis.