Two Cities Entered into a Contractual Agreement to Operate a Landfill

question 19

Multiple Choice

Two cities entered into a contractual agreement to operate a landfill. The cities each contributed the necessary assets to operate the landfill in proportion to their populations. Each city has the ability to appoint two members of the governing body of the landfill. The assets contributed by First City were primarily in the form of property and equipment that had been used in general government activities. In what manner would the landfill be included in First City's fund financial statements?

• A) In a governmental fund only.
• B) In the schedule of changes in capital assets only.
• C) In a proprietary fund only.
• D) Not be recognized in the financial statements.

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Definitions:

Breathe

The process of inhaling and exhaling air to facilitate gas exchange, primarily oxygen intake and carbon dioxide expulsion, in living organisms.

Hindbrain

The hindbrain is a part of the brain located towards its lower back area, responsible for fundamental life functions such as breathing, heart rate, and balance.

Medulla

An essential part of the brainstem that controls vital body functions such as breathing and heart rate.

Cerebellum

A region of the brain that plays an important role in motor control, and may also be involved in some cognitive functions.