Employees of the General Fund of Scott City Earn Ten

question 27

Multiple Choice

Employees of the General Fund of Scott City earn ten days of vacation for each 12 months of employment.The City permits employees to carry the vacation days forward as long as they wish.During the current year employees earned $800,000 of vacation benefits, of which the City estimates that $500,000 will be taken in the next year and the balance will be carried forward.Assuming that the City maintains its books and records in a manner that facilitates the preparation of its fund financial statements, which of the following entries is the correct entry in the General Fund to record the vacation pay earned during the current period?

• A)Debit Expenditures $800,000; Credit Vacation pay payable $800,000.
• B)Debit Expenditures $500,000; Credit Vacation pay payable $500,000.
• C)Debit Vacation expense $800,000; Credit Vacation pay payable $800,000.
• D)No entry required.

Graph systems of linear inequalities in two variables.

Analyze the collinearity of points in the coordinate plane.

Calculate areas of geometric shapes using coordinates.

Understand and graph systems of linear inequalities.

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Definitions:

Net Profit Margin

The percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.

Return on Assets

A measure of a company's profitability relative to its total assets, indicating how efficiently a company uses its assets to generate earnings.

Cost of Borrowing

The total charges, including interest and any other fees, that a borrower pays to secure and use borrowed money.

Acid-Test Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.