Question

Cates Computing Systems develops and markets commercial software for personal computers and workstations. Three situations involving compensation for possible future absences of Cate's employees are described below.

a. Cate compensates employees at their regular pay rate for time absent for military leave, maternity leave, and jury time. Employees are allowed predetermined absence periods for each type of absence.

b. Members of the new product development team are eligible for three months' paid sabbatical leave every four years. Five members of the team have just completed their fourth year of participation.

c. Company policy permits employees four paid sick days each year. Unused sick days can accumulate and can be carried forward to future years.

Required:

1. What are the conditions that require accrual of an expense and related liability for employees' compensation for future absences?

2. For each of the three situations, indicate the circumstances under which accrual of an expense and related liability is warranted.

Answer 1

It is an issue on accumulation of leave you will likely choose if in the books of record it will be seemed assembled or ot Owe separate conditions are referenced underneath

1.When leave has assembled a. money is beyond question payable in future then it is vital to make in the book

2. In case accumulation of leave is obligated to the event of an event, no 11.4 is made in the book with the exception of if rt has happened

3. Again leave is now and again allowed to gather yet not benfitted with the exception of if something has happened For such leave in like manner no commitment should be made in the b.ks of record

Answer of segment 2:

In the issue. three sorts of leave has been suggested They are surveyed in the light of centers discussed in the past pares

I. Exactly when a delegates needs to remain missing in view of reasons like:

a. Military activities

b maternity and

c Injury time,

by then compensation is payable Here leave will be yielded exactly when something has happened Military leave is payable exactly when a work is called to do the proportional Similarly a female master. get maternity leave exactly when she is pregnant Finally harm leave is taken only.en there is disaster in course of business and work has persisted harm