Suppose Searing School District provides paid time off (PTO) to its employees, and unused PTO may be
Question:
Suppose Searing School District provides paid time off (PTO) to its employees, and unused PTO may be transferred to the next fiscal year. During the year, employees earned $100,000 of PTO and carried $10,000 of it to next fiscal year. Further, the $10,000 is expected to be used up by employees in 5 years.
a. What would be dollar amount of the PTO expense recorded on a full accrual basis?
b. What would be the dollar amount of the PTO outflow recorded on a cash basis?
c. What would be the dollar amount of the PTO expenditure recorded on a modified accrual basis?
d. In each case, explain your answer.
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a 100000 b 90000 c 90000 d On a full accrual basis the PTO represents the consumption of ...View the full answer
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Related Book For 
Financial Management For Public Health And Not-for-Profit Organizations
ISBN: 9781071835333
7th Edition
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
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