Cash payments for compensated absences were $685,000 for the year. The current portion of the compensated absences liability decreased by $62,000 during the year, but the noncurrent portion of the liability increased by $32,000. How will the General Long-Term Liabilities accounts be affected?

Question

Quizplus · Accepted Answer

The General Long-Term Liabilities accounts will be affected by the increase in the noncurrent portion of the liability, which is $32,000. Cash payments and changes in the current portion do not affect these accounts.

Cash Payments for Compensated Absences Were $685,000 for the Year