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Ya know this is something I've been meaning to ask for a while but I've been putting it off.

Is accrued compensation a "good" liability? My reasoning is:

1. Accrued compensation is vacation time, sick leave etc. This is shown on the books in dollars but it is really measured in hours.

2. When an employee gets a raise the hours of earned vacation and sick leave remain the same but the dollar value of that time has gone up.

3. So in a sense there is interest being paid on this liability. I'm not sure if it is as "good" a liability as Accounts Payable or Deferred Revenue.


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