De Benefits 257 PROBLEMS PROBLEM 1: MULTIPLE CHOICE Entity A's employees are entitled to six days paid sick leaves per year. Any unused sick leave is converted to cash when the employee resigns or retires. The sick leave benefits are considered vesting c. non-accumulating d. monetizing non-vesting 2 Compensated absences that can be carried forward and used in future periods if not fully used in the current period of entitlement are referred to as a contributory c. accumulating. b. non-contributory. d. vesting 3. Under a profit-sharing plan, Entity A agrees to pay its employees 5% of its annual profit. The bonus shall be divided among the employees currently employed as at year-end. Relevant information follows: Profit for the year P8,000,000 8 7 6. Employees at the beginning of the year Average employees during the year Employees at the end of the year ON If you are one of the employees of Entity A, how much bonus do you expect to receive? 4. 66,667 b. 57,143 c. 50,000 d. O Under this post-employment benefit plan, the retirement benefit cost is equal to the contribution due for the period. 2. Defined contribution plan c. State plan Defined benefit plan d. Multi-employer plan