Which of the Following Would Be Considered a General Capital

question 60

Multiple Choice

Which of the following would be considered a general capital asset?

• A) A vehicle purchased from General Fund revenues.
• B) A vehicle purchased and maintained by an enterprise fund.
• C) A computer purchased from revenues of an internal service fund and used by the supplies department.
• D) Real estate purchased with the assets of a pension trust fund.

Understand the concepts and importance of managing accounts receivable and the allowance for doubtful accounts.

Learn how to estimate uncollectible accounts using different methods, including the aging method and the income statement approach.

Grasp the process and accounting implications of writing off uncollectible accounts under the allowance method.

Recognize the effects of year-end adjustments for estimated bad debts on financial statements.

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Definitions:

Motor Vehicle Exemption

A provision in bankruptcy law that allows an individual to keep a vehicle up to a certain value as exempt from seizure by creditors.

Federal Bankruptcy Exemptions

Provisions allowing an individual to exempt certain types of property from the bankruptcy estate, thus protecting them from being seized to pay off creditors under federal bankruptcy law.

Liquidation

The process of closing a business and distributing its assets to claimants, typically occurring when a company is insolvent.

Perfection

In legal and financial contexts, perfection refers to the process of securing a legal claim or interest, ensuring its enforceability against third parties, especially in cases of bankruptcy or sale of the associated collateral.