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NEW QUESTION: 1
At its balance sheet date, an entity reliably estimates that the expected cost of compensated absences resulting from short-term disability will be US $100,000. This unused entitlement arose from employee services rendered during the period and is accumulating. How should it be accounted for?
A. Only a disclosure should be made because recognition does not occur until the absences occur.
B. An asset of US $100,000 should be recognized.
C. An expense should be recorded for US $100,000.
D. A direct reduction to retained earnings of US $100,000 should occur.
Answer: C
Explanation:
Short-term employee benefits expected to be paid as a result of service rendered during the period ordinarily should be recognized as an expense and a liability accrued expense). For short-term compensated absences, the timing of recognition del ends on whether the benefits accumulate. If the benefits for compensated absences accumulate, the .,.i_1ect1d cost of short-term compensated absences is recognized when services are rendered that increase the employees entitlement to future compensated absences. The obligation is recognized whether it is vesting the employee is entitled to a cash payment for an unused entitlement upon leaving the entity) or not vesting. The amount should not be discounted. It equals the additional amount expected to be paid as a result of the unused accumulated entitlement at the balance sheet date. Hence, the entity should debit expense and credit liability for US $100,000 because the entitlement accumulates and the employees have rendered services during the period that increase their future entitlement.

NEW QUESTION: 2
You set up three pay-when-paid (PWP) terms and assign them to the vendors for a project. For the first PWP term,you set the account code for all vendors (All). For the second PWP term,you set the account code for an individual vendor (Table). For the third PWP term,you set the account code for a group of vendors (Group).
What is the order of precedence for assigning the PWP terms when you create a project purchase order?
A. Table,Group,All
B. All,Group,Table
C. All,Table,Group
D. Table,All,Group
Answer: A

NEW QUESTION: 3
QUESTION NO: 405.
A municipal securities principal must directly supervise municipal securities operations.
This includes reviewing all but one of the following. Which task is NOT involved in
directly supervising municipal securities operations?
A. Providing quotations to customers
B. Handling customer complaints
C. Handling a municipal securities transaction
D. Opening the customer's account
Answer: A