A city has a long-term general government liability for compensated absences of 700,000 at the beginning of the year and 650,000 at the end of the year.
What adjustment is needed to the fund balance to reconcile the governmental funds balance sheet information to net position for governmental activities in the government-wide statement?
A. (650,000).
B. (50,000).
C. 50,000.
D. 700,000.
Question 2
A government has 1,000,000 of 6, 10-year general obligation bonds outstanding. The bonds were issued on August 15, 20X6 to finance construction of a general capital asset. Interest is payable semiannually on February 15 and August 15 .
What is the maximum amount of interest expenditures that the government would be permitted to report on the bonds for 20X6?
A. 0.
B. 22,500.
C. 30,000.
D. 60,000.
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