If a Government Forecloses on Property Because of Unpaid Taxes

question 19

Multiple Choice

If a government forecloses on property because of unpaid taxes in the General Fund and retains it for general government use, which of the following funds and/or accounts would most likely be affected by the transaction?

• A) General Fund only.
• B) General Capital Assets accounts only.
• C) General Fund and General Capital Assets accounts.
• D) General Capital Assets and General Long-Term Liabilities accounts.

---

Definitions:

Subsidiary Company

A company that is completely or majority-owned by another corporation, known as the parent company.

Parent Company

A corporation that owns enough voting stock in another corporation to control its management and operations.

Amortization

The process of gradually writing off the initial cost of an asset over its useful life.

Bond Investment

An investment in debt securities issued by corporations or governments to finance their operations.