24-25

Which is the most correct time to report a liability in government-wide statements? a. when the liability occurred b. When it is paid c. never reported in the government-wide statement d. when it is both known and measurable Employees for your city earned $3.6 million in vacation pay that they did not use in the current year. Your city estimates that of this amount $2.8 million will be paid next year and the $.6 million will be paid in subsequent years and that the balance of $.2million will never be paid. Assume that the city records this in their general fund. What is the amount that you will report in the government-wide statements for this year? a. $.6 million b. $3.4 million c. $2.8 miltion d. $.2 million e. $3.0 mitlion t. 50 g. $3.6 million