A liability for compensated absences such as vacations, for which it is expected that employees will be paid, should
A)be accrued during the period when the compensated time is expected to be used by
Employees.
B)be accrued during the period following vesting.
C)be accrued during the period when earned.
D)not be accrued unless a written contractual obligation exists.

Question

Quizplus · Accepted Answer

A liability for compensated absences should be accrued during the period when the benefits are earned by employees, as this reflects the obligation the employer has to pay for these benefits.

A Liability for Compensated Absences Such as Vacations, for Which