Which of the Following Transactions Should the City of Highland

question 10

Multiple Choice

Which of the following transactions should the City of Highland account for in a trust fund?

• A)General fund contributions received by the City pension plan.
• B)Greens fees received from golfers at the City-owned golf course.
• C)Grants received from the Federal government to purchase buses to be used for public transit.
• D)Proceeds of bonds issued to construct a new city hall building.

Identify and classify expenses and revenues as either accrued or deferred.

Recognize the importance and implications of adjusting entries in financial reporting.

Distinguish between prepaid expenses and unearned revenues.

Understand how the matching principle applies to revenue and expense recognition.

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Definitions:

Steam

The gas phase of water, produced when water boils, transferring heat energy and being used in various industrial and cooking processes.

Crystalline

Consisting of or containing crystals, or being structured in a way that forms a repeating pattern at the atomic or molecular level.

Lattice Structure

The regular, repeated three-dimensional arrangement of atoms, ions, or molecules in a metal or other crystalline solid.

Oxidized

A chemical change in which a substance loses electrons, often associated with the addition of oxygen or the loss of hydrogen.