What Is the Effect on the General Fund's Fund Balance

question 119

Multiple Choice

What is the effect on the General Fund's fund balance when capital assets are purchased during a year from General Fund revenues?

• A) Fund balance is increased.
• B) Fund balance is decreased.
• C) There is no effect, since one asset cash is replaced by another capital asset.
• D) None of the above, capital assets must be purchased through a capital projects fund.

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