In accounting for compensated absences, the difference between vested rights and accumulated rights is
A)vested rights are normally for a longer period of employment than are accumu?lated rights.
B)vested rights are not contingent upon an employee's future service.
C)vested rights are a legal and binding obligation on the company, whereas accumulated rights expire at the end of the accounting period in which they arose.
D)vested rights carry a stipulated dollar amount that is owed to the employee; accumulated rights do not represent monetary compensation.

Question

Quizplus · Accepted Answer

Vested rights are the employee's legally binding right to receive compensation for future absences, regardless of whether the employee continues to work for the company. Accumulated rights, on the other hand, accumulate over time based on an employee's length of service and expire at the end of the accounting period in which they arose.

In Accounting for Compensated Absences, the Difference Between Vested Rights