Compensated Absences Flashcards
1
Q
What do compensated absences include?
A
Vacation, Holiday and sick leave for which an employee is compensated.
2
Q
When is an amount less than the total benefit earned by employees accrued?
A
When not all earned benefits are expected to be paid
3
Q
What is the exception to the requirement that compensated absence expense be accrued?
A
Sick pay benefits
4
Q
What is the most likely recognition of the effect of a pay raise between the time of recognition of compensated absence liability and payment?
A
Increase in expense in the period of payment
5
Q
What is the meaning of “accumulate” in the context of compensated absences?
A
Benefits carry over to future periods although there may be limits
