Question

A government has the following liabilities at the end of the year:
General obligation bonds $1,500,000
Compensated absences 120,000
Salaries payable 40,000
What amount of liabilities should be reported in the governmental activities column of the
government-wide statement of net position?
A. $40,000
B. $160,000
C. $1,540,000
D. $1,660,000

Answer 1

Answer:

option (D) $1,660,000

Explanation:

Data provided in the question:

General obligation bonds = $1,500,000

Compensated absences = $120,000

Salaries payable = $40,000

Now,

The amount of liabilities that should be reported in the governmental activities column of the  government-wide statement of net position

= General obligation bonds + Compensated absences + Salaries payable

= $1,500,000  + $120,000  + $40,000

= $1,660,000

Hence,

The answer is option (D) $1,660,000