The most important consideration in evaluating the fairness of the amounts accrued for vacation pay, sick pay, and other benefits is the
A) consistent accrual of these liabilities relative to those of preceding periods.
B) actual expense incurred for the prior period.
C) amount expended to date in the current period.
D) profitability of the client which will enable these liabilities to be met.
A
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The gross profit method of inventory valuation is invalid when
a. a portion of the inventory is destroyed. b. there is a substantial increase in inventory during the year. c. there is no beginning inventory because it is the first year of operation. d. none of these.
All of the following are leading to relentless downward pressure on price, EXCEPT:
A. increasing competitive intensity B. product substitutability C. rapidity of technological innovation D. rapidity of technological change E. expense creep