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Each Full-Time Employee of Hydroponics Greenhouse Is Entitled to Ten

Question 64

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Each full-time employee of Hydroponics Greenhouse is entitled to ten paid sick days each year.The sick pay is not vested,but any unused sick days can be carried over to subsequent years.Under FASB ASC Topic 710,Hydroponics Greenhouse should


A) recognize sick pay as an expense when actually paid.
B) recognize an estimated current liability for unused sick pay at the end of each period.
C) recognize an estimated noncurrent liability for unused sick pay at the end of each period.
D) accrue or not accrue sick pay based on historical rates of absenteeism.

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