Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

تمرين 81

The employees of the City of Jones earn vacation time that totals $1,000 per week during the year. Of this amount, $12,000 is actually taken in Year 1 and the remainder is taken in Year 2.
What amount of liability should the city recognize on fund financial statements at December 31, Year 1 Assume that all remaining vacations will be taken in July.
a. It depends on whether the employees work at governmental activities or business-type activities.
b. $-0-.
c. $40,000.
d. $52,000.