To account for vacation pay, employers should record the vacation pay expense in the accounting period when it is paid.

Name: To account for vacation pay, employers should record the vacation pay expense in the accounting period when it is paid.
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Employers should record the vacation pay expense in the accounting period when the employee earns it, not when it is paid, to adhere to the matching principle of accounting.

To Account for Vacation Pay, Employers Should Record the Vacation