Assume that General Fund employees accrued $125,000 of compensated absences liability during the year. Compensated absences liability, which is considered to be a long-term liability, decreased $30,000 from the beginning of the year to the end of the year. The fund also actually paid $550,000 in salaries and wages during the year. At the end of the fiscal year, salaries and wages payable was $12,000. The General Fund would report salaries and wages expenditures for the year of

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The correct answer is A.The General Fund would report salaries and wages expenditures for the year of $532,000. This is calculated as follows:Salaries and wages paid $550,000Less: Salaries and wages payable at end of year 12,000Add: Compensated absences liability at beginning of year 155,000Less: Compensated absences liability at end of year 125,000Salaries and wages expenditures $532,000

Assume That General Fund Employees Accrued $125,000 of Compensated Absences