Question

Employee vacation benefits: Multiple Choice Are recorded as an expense when the employee retires. Increase net income. Are estimated liabilities. Are contingent liabilities. Are recorded as an expense when the employee takes a vacation.

Answer 1

Answer: are estimated liabilities

Explanation:

Employee vacation benefits are estimated liabilities. It should be noted that an estimated liability is an obligation or a debt of an unknown amount which an economic agent i.e an individual, firm or the government can reasonably estimated.

It is a known liability that everyone is aware of but don't really know the exact cost.