A Governmental Entity May Record Long-Term Assets in Which of the Following

question 39

Multiple Choice

A governmental entity may record long-term assets in which of the following funds or account groups?

• A)General Fund
• B)Internal service funds.
• C)Capital Project Fund
• D)Debt Service Fund.

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Definitions:

Direct Write-off Method

An accounting approach where bad debts are recognized and recorded as an expense directly when they are deemed uncollectible.

General Journal

A fundamental accounting ledger that records all businesses transactions in chronological order, prior to being transferred to specific accounts.

Direct Write Off Method

An accounting practice where uncollectable accounts receivable are directly removed from the books when deemed uncollectible.

Direct Write-off Method

An accounting practice where uncollectible accounts receivable are directly written off against income at the time they are deemed unrecoverable.