Which of the following statements regarding vacation benefits is correct?
A)No entry is needed until the employee takes paid vacation.
B)The account,Vacation Expense is debited when the employee takes paid vacation.
C)Health and pension benefits are recorded in the same manner as vacation benefits.
D)When an employee takes paid vacation,the account,Vacation Benefits Payable is credited.

Question

Quizplus · Accepted Answer

Health and pension benefits are recorded in the same manner as vacation benefits because they are both considered employee benefits and are accrued as liabilities when earned by the employee.

Which of the Following Statements Regarding Vacation Benefits Is Correct