An Enterprise Fund in Bobby County Donated a Vehicle That

question 47

Multiple Choice

An enterprise fund in Bobby County donated a vehicle that had an original cost of $50,000 to one of the County's general government departments. The net book value of the vehicle as of the date of donation was $15,000. The enterprise fund would record the transaction as a

• A) Debits to transfer out of $15,000 and to accumulated depreciation of $35,000, and credit to capital assets of $50,000
• B) Debit to transfer out of $15,000 and credit to capital assets of $15,000
• C) Debits to nonoperating expense of $15,000 and to accumulated depreciation of $35,000, and credit to capital assets of $50,000
• D) Debit to capital contribution of $15,000 and credit to capital assets of $15,000

---

Definitions:

Dividend Per Share

The amount of dividend that a company pays out to its shareholders for each share they own.

Return on Equity

An indicator of a company's financial performance, showing the amount of profit generated per dollar of shareholders' investment.

Required Return

The minimum expected return an investor demands for investment in a specific asset, considering its risk profile.

Earnings

The profit a company makes after deducting its operating expenses, taxes, and costs from its revenue.