Laid Back Corp follows the practice of paying all employees for vacation. The vacation pay is not vested, but it carries over for one year if unused. Under GAAP, the obligation for earned but unused vacation should be
a. accrued as a current liability.
b. disclosed as a contingent liability.
c. ignored until incurred.
d. accrued or not accrued according to the judgment of management.
A
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Indicate whether the statement is true or false
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Morris Manufacturing is in the 25 percent tax bracket and has a 10 percent rate of return. The after-tax rate of return is:
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