State University, a Public University, Has a Policy of Granting

question 29

Multiple Choice

State University, a public university, has a policy of granting faculty members a one-year paid sabbatical leave after a period of seven years continuous employment. The leave is for further study, research, or public service. A particular faculty member earns $90,000 per year. Assuming that the college maintains its books and records in a manner that facilitates the preparation of fund 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 leave?

• A) Debit Expenditures $90,000; Credit Cash $90,000.
• B) Debit Expenses $90,000; Credit Cash $90,000.
• C) Debit Sabbatical leave payable $90,000; Credit Cash $90,000.
• D) No entry required.

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Definitions:

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Trade benefits refer to the advantages a country gains from engaging in international trade, such as increased economic growth, diversity of goods, and improved efficiency.

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