The Entry in the General Fund to Record the Reimbursement

question 60

Multiple Choice

The entry in the General Fund to record the reimbursement from a capital projects fund for legal services paid by the General Fund on its behalf would include:

• A)​a debit to Expenditures.
• B)​a credit to Other Financing Sources.
• C)​a credit to Expenditures.
• D)​a credit to Revenues.

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Definitions:

Valuation Allowance

A reserve set aside against deferred tax assets due to uncertainty regarding their realization in the future.

Fair Value Adjustments

Fair value adjustments are accounting practices to revise the book value of an asset or liability to its current market value.

Trading Security

A financial asset that a company holds primarily for the purpose of selling it in the short term to profit from price fluctuations.

Fair Value

The estimated market value of an asset or liability, based on current market conditions.