Company B has a policy that employees are entitled to a yearly 2 weeks sick leave....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Company B has a policy that employees are entitled to a yearly 2 weeks sick leave. policy is accumulating and non-vesting. Sick leave Sick leave unused in a financial year can only be carried forward for 1 financial year. example, unused sick leave in the financial year ended 30 June 2018 must be used by 30 June For 2019. When taking sick leave, current year entitlements must be used first before any prior year carried forward balance is to be used. In year 30 June 2018, an employee Mr CEO Drama Queen has taken 6 days of sick leave. There was no opening balance brought forward on 1 July 2017. It is expected that the Mr CEO Drama will take sick leave in next year under the follow scenario: (Scenario W) 8 days sick leave next year, (Scenario X) 10 days. A likely scenario when the competition is higher in the industry. (Scenario Y) 13 days. A likely scenario when competition is high and the flu season is bad. (Scenario Z) 18 days. A likely scenario when competition is high, flu season is bad, and the board is hiring a CFO candidate who is known for having an aggressive work style. The CEO yearly salary is $260,000. What is the sick leave EXPENSE for Mr Drama in the year ended 30 June 2018 under the different scenario? What is the sick leave EXPENSE for Mr Drama in the year ended 30 June 2018 under the different scenario? a) All 10 days entitlement $10,000 is the expense. b) Only the 6 days used or $6,000 is the expense. c) W: ($1000 x 6) + ($1000 x 0) X: ($1000 x 6 ) + ($1000 x 0) Y: ($1000 x 6) + ($1000 x 3) Z: ($1000 x 6) + ($1000 x 8) d) W: ($1000 x 6) + ($1000 x 0) X: ($1000 x 6 ) + ($1000 x 0) Y: ($1000 x 6) + ($1000 x 3) Z: ($1000 x 6) + ($1000 x 4) e) None of the above. Company B has a policy that employees are entitled to a yearly 2 weeks sick leave. policy is accumulating and non-vesting. Sick leave Sick leave unused in a financial year can only be carried forward for 1 financial year. example, unused sick leave in the financial year ended 30 June 2018 must be used by 30 June For 2019. When taking sick leave, current year entitlements must be used first before any prior year carried forward balance is to be used. In year 30 June 2018, an employee Mr CEO Drama Queen has taken 6 days of sick leave. There was no opening balance brought forward on 1 July 2017. It is expected that the Mr CEO Drama will take sick leave in next year under the follow scenario: (Scenario W) 8 days sick leave next year, (Scenario X) 10 days. A likely scenario when the competition is higher in the industry. (Scenario Y) 13 days. A likely scenario when competition is high and the flu season is bad. (Scenario Z) 18 days. A likely scenario when competition is high, flu season is bad, and the board is hiring a CFO candidate who is known for having an aggressive work style. The CEO yearly salary is $260,000. What is the sick leave EXPENSE for Mr Drama in the year ended 30 June 2018 under the different scenario? What is the sick leave EXPENSE for Mr Drama in the year ended 30 June 2018 under the different scenario? a) All 10 days entitlement $10,000 is the expense. b) Only the 6 days used or $6,000 is the expense. c) W: ($1000 x 6) + ($1000 x 0) X: ($1000 x 6 ) + ($1000 x 0) Y: ($1000 x 6) + ($1000 x 3) Z: ($1000 x 6) + ($1000 x 8) d) W: ($1000 x 6) + ($1000 x 0) X: ($1000 x 6 ) + ($1000 x 0) Y: ($1000 x 6) + ($1000 x 3) Z: ($1000 x 6) + ($1000 x 4) e) None of the above.
Expert Answer:
Answer rating: 100% (QA)
B Only the 6 days used or 6000 is the expense EXPLANATION The expense for Mr Drama would only ... View the full answer
Related Book For
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
In Alomar Company, employees are entitled to 1 days vacation for each month worked. In January, 50 employees worked the full month. Record the vacation pay liability for January assuming the average...
-
In Estrada Company, employees are entitled to 1 day's vacation for each month worked. In January, 35 employees worked the full month. Record the vacation pay liability for January assuming the...
-
A company has a policy that employees wishing to be project managers must first spend one to one-and-a-half years in the functional employee side of the house so that they can get to know the...
-
A Hydrogen atom has one proton in the nucleus and one electron in the shell. In a classic model of the atom, in a certain state, this electron is in a circular orbit around the nucleus with an...
-
The Darl Company operates a simple chemical process to convert a single material into three separate items, referred to here as X, Y, and Z. All three end products are separated simultaneously at a...
-
Multiple Choice Questions 1. In a particular year, a not-for-profit hospital provides free care to charity patients, which, if billed at standard rates, has a value of $3 million. During the same...
-
Consider the statement Customer complaints are customer opportunitiesbut only if we know about them. Do you agree or disagree? Why?
-
Following is a partially completed balance sheet for Epsico, Inc., at December 31, 2010, together with comparative data for the year ended December 31, 2009. From the statement of cash flows for the...
-
2. Determine two different row-echelon forms for the following augmented matrix: - 3. Reduce the following augmented matrix to row-echelon form. Make sure that there are no fractions in the final...
-
Name the fallacy in each statement below and explain why it is fallacious. 1. The best restaurant in New York city is either buddy's bistro or clyde's emporium. 2. Everyone is going to buddy's...
-
Choose one section from your textbook America, A Narrative History and write a two-page critical analysis. This means youll need to do a little research on the topic of the section youve chosen so...
-
What do the terms activity cost driver and activity cost driver rates mean?
-
Would it be permissible to allocate all vocational training funds for students with disabilities to separate programs? Should all vocational training programs integrate students with disabilities and...
-
Conventional product costing systems are likely to overcost high-volume products. Do you agree with this statement? Explain.
-
Is there harm done to the public by awarding a student a diploma when the student has not completed competency requirements? Is this different from a situation involving higher education? That is, is...
-
What is a job-cost sheet? Prepare a comprehensive job-cost sheet of a firm having two departments.
-
Bernoulli's equation for fluid flow in an open channel with a small bump is Q 2gb Q +ho = +h+H 2gbh ho Q- h H where Q = 1.2 m/s = volume rate of flow g = 9.81 m/s = gravitational acceleration b = 1.8...
-
The age-old saying for investing is "buy low and sell high," but this is easier said than done. Investors who panic about falling prices sell their investments, which in turn lowers the price and...
-
The following are the major balance sheet classifications: Current assets (CA).......... Current liabilities (CL) Long-term investments (LTI)....... Long-term liabilities (LTL) Property, plant, and...
-
Indicate whether the following accounts generally will have (a) Debit entries only, (b) Credit entries only, or (c) Both debit and credit entries. (1) Cash. (2) Accounts Receivable. (3) Owners...
-
Distinguish between a master budget and a sales forecast.
-
Nitrogen, traveling at \(12 \mathrm{~m} / \mathrm{s}\) with a pressure of \(14 \mathrm{bar}\) abs. at a temperature of 800 \(\mathrm{K}\), enters a device with an area of \(0.05 \mathrm{~m}^{2}\). No...
-
Cold water with an enthalpy of \(8 \mathrm{Btu} / \mathrm{lbm}\) enters a heater at the rate of \(5 \mathrm{lbm} / \mathrm{sec}\) with a velocity of \(10 \mathrm{ft} / \mathrm{sec}\) and at a...
-
The control volume shown in Figure \(P 2.15\) has steady, incompressible flow, and all properties are uniform at the inlet and outlet. For \(u_{1}=1.256 \mathrm{MJ} / \mathrm{kg}\) and...
Study smarter with the SolutionInn App