A Local Industry Donated One of Its Properties to the Anywhere

question 31

Multiple Choice

A local industry donated one of its properties to the Anywhere School District. The school district plans to convert it to needed classroom space. In the year of the donation, the transaction will affect

• A) The government-wide statements only.
• B) The General Fund and General Capital Assets accounts.
• C) The General Fund, the General Capital Assets accounts, and the government-wide financial statements.
• D) The General Capital Assets accounts and the government-wide financial statements.

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Definitions:

Amortization Period

Refers to the total time taken to pay off a debt in regular installments until the loan amount and interest are paid in full.

Compounded Semi-annually

The method of determining interest by adding it to both the original amount of money deposited or borrowed and the interest that has already been added over two periods within a year.

Amortization

The process of paying off a debt over time through regular payments.

Compounded Semi-annually

A method of calculating interest where the interest is added to the principal amount twice a year, leading to interest being earned on interest.