Which Statement Is True with Respect to Reporting for Compensated

Multiple Choice

Which statement is true with respect to reporting for compensated absences by state and local governments?

A) Only compensated absences expected to be paid with current financial resources are reported in the proprietary funds operating statement.
B) If the benefit depends on future services provided by the employee, an expense is not reported in the proprietary funds.
C) The compensated absence expense reported in the proprietary funds is generally lower than the compensated absence expenditure reported in the governmental funds.
D) Most sick leave is accrued by governmental funds.