Vacation pay payable is reported on the balance sheet as a (n)

A) current liability or long-term liability, depending on when the vacations will be taken by employees
B) current liability
C) expense
D) long-term liability

Vacation pay payable is reported as either a current liability or a long-term liability on the balance sheet, depending on the timing of when the vacations will be taken by employees. If the vacations are expected to be taken within the next year, it is classified as a current liability. If they are expected to be taken beyond the next year, it could be classified as a long-term liability.