Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

تمرين 76

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.