State Community College, a Public College, Grants Faculty Members a One-Year

question 13

Multiple Choice

State Community College, a public college, grants faculty members a one-year sabbatical leave after each seven years of service.There are no requirements for research, study or service during the compensated sabbatical leave.A particular faculty member earns $40,000 per year.Assuming that the college maintains its books and records in a manner that facilitates the preparation of the government-wide financial statements and assuming that any appropriate accruals have been made, what is the appropriate entry to record the employee's salary paid while on sabbatical?

• A)Debit Expenditures $40,000; Credit Cash $40,000.
• B)Debit Sabbatical leave payable $40,000; Credit Cash $40,000.
• C)Debit Expenditures $40,000; Credit Cash $40,000
• D)No entry required.

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Definitions:

Coefficient of Correlation

A quantitative index showing the magnitude and direction of a linear correlation between two variables.

Y-intercept

The point where a line or curve intersects the y-axis of a graph, corresponding to the value of the dependent variable when all independent variables are zero.

Least Squares Line

A line of best fit determined by minimizing the sum of squares of the differences between observed values and the values predicted by the line.

Sample Regression Line

A line of best fit through a scatterplot of sample data points in regression analysis, used to estimate the relationship between variables.