When an employee takes a paid vacation, the Vacation Benefits Payable account will be decreased with a credit.

(A) True

(B) False

Question

Davin Burgess

Business

3 January, 06:37

When an employee takes a paid vacation, the Vacation Benefits Payable account will be decreased with a credit.

(A) True

(B) False

+5

Answers (1)

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Monkey · Answer 1

(B) False

Explanation:

The Vacation Benefits payable account represents a liability that the employer has with the employee that has already earned its days of paid vacations but has not used them yet. When the employee is going to enjoy paid vacations days, this account (as all liability accounts) is decreased through a debit, and the bank's account is credited.

When an employee takes a paid vacation, the Vacation Benefits Payable account will be decreased with a credit.(A) True(B) False

When an employee takes a paid vacation, the Vacation Benefits Payable account will be decreased with a credit.

(A) True

(B) False