A long-term liability for compensated absences would typically be included in which component of net position of an Enterprise Fund?

Question

Quizplus · Accepted Answer

Long-term liabilities for compensated absences, such as vacation or sick leave that employees are entitled to be paid for, affect the unrestricted net position because they are not specifically restricted or tied to capital assets. These liabilities reduce the amount of net position that is available for any purpose.

A Long-Term Liability for Compensated Absences Would Typically Be Included