Microsoft
MB-310 · Question #44
A company provides employee life insurance to all full-time employees. Employee life insurance policies are paid twice a year to the insurance company. Transactions for current employees must be…
The correct answer is C. For new employees, use a Debit accrual scheme. In the ledger accrual, set the offset to the D. For current employees, use a Debit accrual scheme. In the ledger accrual, set the offset to the. For both current and new employees, it has to be Debit accrual scheme. The financial impact has to be same and only the date has to be different.
Implement financial management
Question
A company provides employee life insurance to all full-time employees. Employee life insurance policies are paid twice a year to the insurance company. Transactions for current employees must be recognized in the general ledger twice a month with an employee's pay. Transactions for new employees must be recognized in the general ledger based upon the employee's first pay date. You need to configure accrual schemes for the new fiscal year. Which two configurations should you use? Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point.
Options
- AFor new employees, use a Credit accrual scheme. In the ledger accrual, set the offset to the first
- BFor current employees, use a Credit accrual scheme. In the ledger accrual, set the offset to the
- CFor new employees, use a Debit accrual scheme. In the ledger accrual, set the offset to the
- DFor current employees, use a Debit accrual scheme. In the ledger accrual, set the offset to the
How the community answered
(55 responses)- A15% (8)
- B7% (4)
- C78% (43)
Explanation
For both current and new employees, it has to be Debit accrual scheme. The financial impact has to be same and only the date has to be different.
Topics
#accrual schemes#ledger accruals#debit accrual#credit accrual
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