In relation to long-service leave, which of the following statements are correct?
I. The entry to accrue long-service leave is:
DR Long-service leave expense; CR Provision for long-service leave.
II. The leave is paid at the rate of pay applicable when the leave is taken.
III. Employees only starts to accrue long service leave after being employed for a predetermined length of time (often 10 years).

Question

Quizplus · Accepted Answer

Statement I is correct as the accounting entry to accrue long-service leave is DR Long-service leave expense and CR Provision for long-service leave. 
Statement II is correct as the leave is paid at the rate of pay applicable when the leave is taken. 
Statement III is incorrect as the length of service required to accrue long-service leave may vary by location, industry, and employer. Some employees may start to accrue long-service leave after a certain number of years of service, while others may accrue it gradually over time.

In Relation to Long-Service Leave, Which of the Following Statements