A Municipality Allows Its Employees to Accumulate Up to 45

question 21

Multiple Choice

A municipality allows its employees to accumulate up to 45 days' vacation pay that may be "cashed in" by the employees on retirement.Many employees whose salaries are paid from General Fund appropriations avail themselves of this opportunity.Where does this liability appear on the governmental funds balance sheet when employees are not expected to retire in the near future?

• A)General Fund column;Accrued vacation leave caption
• B)This liability is not reported in the governmental funds balance sheet.
• C)General Fund column;Noncurrent liabilities caption
• D)General Fund column;Payable from restricted assets caption

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Definitions:

Exporting Industry

A sector of a country's economy that produces goods or services for sale abroad.

Imported Good

A product or service that is brought into one country from another and offered for sale.

Exported Good

A product manufactured in one country but shipped and sold abroad, contributing to a country's foreign trade balance.

Government Tax Revenue

Funds collected by the government from taxes imposed on individuals and businesses, used to fund public services and infrastructure.