Vacation pay payable is reported on the balance sheet as a(n) A long-term liability B current liability C current liability or long-term liability, depending upon when the vacations will be taken by employees D expense

Question

Vacation pay payable is reported on the balance sheet as a(n) A long-term liability B current liability C current liability or long-term liability, depending upon when the vacations will be taken by employees D expense

Answer 1

C current liability or long-term liability, depending upon when the vacations will be taken by employeesVacation pay payable is reported on the balance sheet as either a current liability or a long-term liability. If the vacation is expected to be taken within one year, it is classified as a current liability. If it is expected to be taken after more than one year, it is classified as a long-term liability.

Problemas

Vacation pay payable is reported on the balance sheet as a(n) A long-term liability B current liability C current liability or long-term liability, depending upon when the vacations will be taken by employees D expense

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