When vacation benefits are paid, Vacation Benefits Expense is debited.

Name: When vacation benefits are paid, Vacation Benefits Expense is debited.
Brand: Quizplus
Rating: 4.8 (61 reviews)

Question

Quizplus · Accepted Answer

When vacation benefits are paid, the correct accounting entry typically involves debiting Vacation Benefits Payable (or a similar liability account) and crediting Cash or Bank. Vacation Benefits Expense would have been debited when the expense was initially recognized, not when the payment is made.

When Vacation Benefits Are Paid, Vacation Benefits Expense Is Debited