Compensated absences are employee absences such as vacation, illness, and holidays for which it is expected that employees will be paid. <a href="http://www.sba.pdx.edu/faculty/rogerc/550/15.pdf">http://www.sba.pdx.edu/faculty/rogerc/550/15.pdf</a> Preview Maximize CHAPTER 12 Stockholdersu0027 Equity 12- 4 ANSWERS TO QUESTIONS 1.