The obligation for compensated absences should be valued at known future wage rates.

Question

Quizplus · Accepted Answer

The obligation for compensated absences should be valued at known future wage rates because it represents the estimated future cost of the employer's obligation to provide compensation for unused absences of the employee. This is in accordance with generally accepted accounting principles (GAAP) and ensures accurate financial reporting.

The Obligation for Compensated Absences Should Be Valued at Known