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

question 27

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 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 Expenses $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:

Pathogens

Microorganisms or agents that are capable of causing disease or illness in their hosts.

Tumor Cells

Abnormal cells that grow and divide uncontrollably, forming a tumor, and may invade nearby tissues or spread to other parts of the body.

Coronary Heart Disease

A condition characterized by reduced blood flow to the heart muscle due to build-up of plaque in the arteries of the heart.

Percent

A mathematical term representing a part per hundred, used to describe proportions, ratios, or fractions in terms of hundredths.