Verification of the legitimacy of year-end unpaid bonuses to officers and employees can be accomplished by comparing the recorded accrual to the amount
A)in the expense account.
B)used in the prior period.
C)authorized and recorded in the minutes of the board of directors.
D)paid in the subsequent period.

Question

Quizplus · Accepted Answer

Verification of the legitimacy of year-end unpaid bonuses involves ensuring that the accrual aligns with the company's formal decisions. This is best accomplished by comparing the recorded accrual to the amount authorized and recorded in the minutes of the board of directors, as these minutes officially document the company's decisions regarding bonuses.

Verification of the Legitimacy of Year-End Unpaid Bonuses to Officers