GAAP relating to compensated absences
A)applies to items such as vacation pay, severance pay, sick pay, and other long-term fringe benefits
B)establishes the same accruing standards for vacation pay, holiday pay, and sick pay
C)requires the use of current pay rates to accrue for compensated absences
D)does not require the accrual of accumulated nonvested sick pay

Question

Quizplus · Accepted Answer

GAAP does not require the accrual of nonvested sick pay because it is not a guaranteed obligation to the employee.

GAAP Relating to Compensated Absences