Question: A school district grants teachers a sabbatical leave every seven
A school district grants teachers a sabbatical leave every seven years. Yet, consistent with GAAP, it fails to accrue a liability for such leave over the period in which the leave is earned—not even in its government-wide statements. How can you justify such accounting?
Answer to relevant QuestionsA government accounts for inventory on the consumption basis. Why do some accountants believe that it should offset the year-end inventory balance with a fund balance—nonspendable when no comparable fund balance is ...A city’s electric utility transfers $40 million to its general fund. Of this amount, $30 million is a return of the general fund’s initial contribution of “start-up capital.” The balance is a payment in lieu of ...The schedule that follows reports the beginning balances and activity during the year in a town’s supplies fund (a governmental fund). The government accounts for supplies on a purchases basis (in thousands).1. Compute ...The following schedule indicates selected accounts from a city’s preclosing 2015 and postclosing 2014 general fund trial balances:.:.All of the amounts shown relate only to supplies. All purchases during the year were ...Review the Comprehensive Annual Financial Report (CAFR) that you obtained.1. How does the government classify its governmental expenditures, by function or by “object”? Are the classifications approximately the same in ...
Post your question