State University, a very large public university, has a policy of granting faculty members a one-year sabbatical leave after a period of seven years of continuous employment.The leave is to be used for further study, research, or service.During the fiscal year ended 6/30/11, the university paid $3 million to faculty members on sabbatical leave and estimated that faculty members currently not on sabbatical leave earned $3.5 million toward sabbatical leaves they are likely to take in the future.The amount of sabbatical expenditures for the year ended 6/30/11 should be
A)$0 million.
B)$3 million.
C)$3.5 million.
D)$6.5 million.

Question

Quizplus · Accepted Answer

The question states that the university paid $3 million for sabbatical leaves during the fiscal year ended 6/30/11, which is the amount of sabbatical expenditures for that year. The $3.5 million estimated for future sabbatical leaves is not an actual expenditure for the year ended 6/30/11.

State University, a Very Large Public University, Has a Policy