A General Capital Asset Constructed Several Years Ago by a Capital

question 63

Multiple Choice

A general capital asset constructed several years ago by a capital projects fund was sold by the General Fund. Entries are necessary in the:

• A) General Fund only.
• B) General Fund and the capital projects fund.
• C) General Fund and governmental activities.
• D) Governmental activities only.

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Definitions:

Original Principal

The initial amount of money borrowed or invested, before the addition of interest or profits.

Principal's Instructions

Guidelines or orders given by a principal to an agent detailing how to perform specific tasks or duties.

Agent's Authority

The scope of power given to an agent to act on behalf of a principal in legal or business matters.

Best for Principal

A standard or principle requiring actions or decisions to be made in the best interest of the principal or the party represented.