The hoarding of annual leave by staff can lead to large liabilities on the balance sheet and

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The hoarding of annual leave by staff can lead to large liabilities on the balance sheet and ineffective staff.

1. Explain how staff not taking annual leave can lead to liabilities on the balance sheet.

2. Some organisations force staff to take all of their annual leave for health reasons, but also to improve the financial statements. What impact would this action have on the:

a. Income statement?

b. Balance sheet?

c. Statement of cash flows?
Assume that no additional staff are hired to replace them while on leave.

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Financial Accounting An Integrated Approach

ISBN: 9780170349680

6th Edition

Authors: Ken Trotman, Michael Gibbins, Elizabeth Carson

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Question Posted: Jan 25, 2024 05:00 AM

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The hoarding of annual leave by staff can lead to large liabilities on the balance sheet and

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1 When staff members do not take their annual leave it accumulates as a liability for the company in ...View the full answer

Financial Accounting An Integrated Approach

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