According to current GAAP, which of the following is not a condition suggesting that an accrual for vacation pay be made?
A)The obligation must relate to rights that vest.
B)The payment of compensation is probable.
C)The obligation must relate to employee services already rendered.
D)The amount can be reasonably estimated.

Question

Quizplus · Accepted Answer

Under GAAP, an accrual for vacation pay is required if the obligation relates to rights that vest or accumulate, not just vest.

According to Current GAAP, Which of the Following Is Not