Which statement isfalsewith respect to reporting for compensated absences by state and local governments?

Only compensated absences expected to be paid with current financial resources are reported in the governmental funds operating statement.

If the benefit depends on future services provided by the employee, no expense is reported in the proprietary funds.

The compensated absence expense reported in the proprietary funds is generally lower than the compensated absence expenditure reported in the governmental funds.

Most sick leave is not accrued by proprietary funds.