Governments,unlike business organizations,generally do not incur expenditures/expenses for the employer's share of FICA taxes and for contributions to other retirement plans established by law.

Question

Quizplus · Accepted Answer

Fringe benefits given to employees of state and local governments whose salaries are paid by a governmental fund must be authorized by appropriations and therefore result in expenditures; fringe benefits for employees paid by a proprietary fund result in expenses.

Governments,unlike Business Organizations,generally Do Not Incur Expenditures/expenses for the Employer's