A Local Government Purchased a Building and Recorded the Event

question 20

Multiple Choice

A local government purchased a building and recorded the event by debiting Expenditures - Capital Outlay and crediting Cash. What would be the worksheet entry to prepare the government-wide statements?

• A) Debit to Capital Assets and credit to Expenditures - Capital Outlay
• B) Debit to Capital Assets and credit to Cash
• C) Debit to Capital Assets and credit to Accumulated Depreciation-Capital Assets and Expenditures - Capital Outlay
• D) Debit to Capital Assets for the book value of the asset and credit to Expenditures - Capital Outlay

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Definitions:

Automatic Transmission Fluid

A type of oil specially formulated for use in automatic transmissions to lubricate, clean, and cool internal components.

General Purpose

Designed for a variety of uses or tasks rather than specialized functions, applicable to many situations.

Parallelogram-type

Typically refers to a mechanism or structure whose opposite sides are parallel and equal in length, often used in steering systems to maintain wheel alignment.

Control Arm

A suspension component in a vehicle that connects the chassis to the wheel hub, allowing for motion while also maintaining alignment.