Question

During the first year of operations, employees earned vacation pay of $35,000. The vacations will be taken during the second year. The vacation pay expense should be recorded in the second year as the vacations are taken by the employees. True or False?

Answer 1

Answer:

False

Explanation:

In the given question it is mentioned that the employees earned vacation pay of $35,000 during the first year of the operation.

the expenses should be recorded as the vacation pay expenses in the same year not in the following year i.e the second year whether the employees take the vacation in the same year or the next year.

Answer 2

Answer:

False

Explanation:

In the given question it is mentioned that the employees earned vacation pay of $35,000 during the first year of the operation.

Hence,

the expenses should be recorded as the vacation pay expenses in the same year not in the following year i.e the second year whether the employees take the vacation in the same year or the next year.