If a company experiences a low turnover rate, vacation pay should be expensed when an employee actually takes the vacation.

Name: If a company experiences a low turnover rate, vacation pay should be expensed when an employee actually takes the vacation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Vacation pay should be expensed as the employee earns it, not when they actually take the vacation, to match expenses with the period in which the employee is providing services.

If a Company Experiences a Low Turnover Rate, Vacation Pay