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An Enterprise Provides for Paid Vacation Periods for Many of Its

Question 43

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An enterprise provides for paid vacation periods for many of its employees.It is probable that these vacations will be taken,and there is a definite amount that accrues each year for each employee.Vacation benefits accrue in the amount of one paid vacation day per complete month of service,that is,an employee must work a complete month before receiving the benefits of another paid vacation day. Given the above information,which of the following statements is correct?


A) Given only the above information,vacation pay should be accrued monthly,as employees render service.
B) Only if the benefits vest should vacation pay be accrued before payment.
C) Only if the benefits accumulate should the vacation pay be accrued before payment.
D) If the benefits neither vest nor accumulate,then the vacation pay should be recognized as expense only when paid.

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