Assume that the General Fund paid out in cash, $195,000 related to compensated absences during the year. If the beginning balance of compensated absences for the governmental activities was $65,000 and the ending balance was $55,000, then the expenses related to compensated absences in the governmental activities column would be? A. $195,000 B. $185,000 C. $65,000 D. $55,000 E. $0

B. 185.000

Explanation:

Fisrt. The forecast of the account begins with a balance of 65,000, during the year 195,000 were paid, this means that an expense of 130,000 is recorded, (195,000 - 65,000, since the expense of 65,000 was previously recorded)

Second. If at the end of the year a provision of 55,000 is determined, on the other hand the expense must be recorded for the same amount.

Then 130,000 of expenses plus the forecast of 55,000 = 185,000