If the payment of employees’ compensation for future absences is probable, the amount can be reasonably estimated and the obligation relates to rights that accumulate, the compensation should be:*1 pointAccrued if attributable to employees’ services already rendered.Accrued if attributable to employees’ service not yet rendered.Accrued if attributable to employees' service whether already rendered or not.Recognized only when actually paid.

These entitlements to compensated or paid absences that are carried forward and can be used in future periods, but the employees are not entitled to a cash payment for unused entitlement upon leaving the entity-employer.*1 pointAccumulating and VestingAccumulating and Non-vestingNon-accumulating and VestingNon-accumulating and Non-vesting

If unpaid expenses incurred during the accounting period are not accrued, the income for the period will be understatedGroup of answer choicesTrueFalse

Question 2The following statement is true except:Answer :Profit sharing and bonus payable to employees are recognised as distribution of profits.    Accumulated short-term compensated leave is presented as current liabilities.    The amounts due and payable to employees for short term benefits should be recognised as accrued expenses.  Short-term employee benefits are generally employee benefits that are due to be settled 12 months after the end of the reporting period.

Which of the following statements is/are correct about employee benefits?*1 pointEmployee benefits are recognized as expense when employees have rendered services, except to the extent that the employee benefits form part of the cost of another asset.Any unpaid short-term benefits at the end of the reporting period shall be recognized as accrued expenseAny unpaid short-term benefits paid in advance shall be recognized as an asset to the extent, that it will lead to a reduction in future payments or a cash refundAll of these are correct

Adjusting entries for accrued expenses ensure that liabilities are reported for all amounts Blank______ at the end of the accounting period.Multiple choice question.paidthat represent probable future benefitsusedowed