Northwest Company determined that it has an obligation relating to employees' rights to receive compensation for future absences attributable to employees services already rendered. The obligation relates to rights that vest, and payment of the compensation is probable. The amounts of Northwest's obligations as of December 31 are reasonably estimated as follows:

In its December 31 balance sheet, what amount should Northwest report as its liability for compensated absences?

Question

Northwest Company determined that it has an obligation relating to employees' rights to receive compensation for future absences attributable to employees services already rendered. The obligation relates to rights that vest, and payment of the compensation is probable. The amounts of Northwest's obligations as of December 31 are reasonably estimated as follows:

In its December 31 balance sheet, what amount should Northwest report as its liability for compensated absences?

Quizplus · Accepted Answer

The Answer of Northwest Company determined that it has an obligation relating to employees' rights to receive compensation for future absences attributable to employees services already rendered. The obligation relates to rights that vest, and payment of the compensation is probable. The amounts of Northwest's obligations as of December 31 are reasonably estimated as follows:

In its December 31 balance sheet, what amount should Northwest report as its liability for compensated absences?

Northwest Company Determined That It Has an Obligation Relating to Employees