Which of the following is a condition for accruing a liability for the cost of compensation for future absences?
A) The obligation relates to the rights that vest or accumulate.
B) Payment of the compensation is probable.
C) The obligation is attributable to employee services already performed.
D) All of these are conditions for the accrual.

Question

Quizplus · Accepted Answer

All of the given conditions must be met for a liability for the cost of compensation for future absences to be accrued. The liability must relate to the rights that vest or accumulate, payment of the compensation must be probable, and the obligation must be attributable to employee services already performed.

Which of the Following Is a Condition for Accruing a Liability