The General Fund of the City of Plymouth Purchased a Police

question 1

Multiple Choice

The General Fund of the City of Plymouth purchased a police car in the amount of $25,000.Which of the following would be true?

• A) The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances would report an expenditure of $25,000.
• B) The government-wide Statement of Activities would report an expense of $25,000.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Process Costing System

An accounting methodology used for homogenous products, allocating costs across units of production, making it easier to determine per-unit costs.

Processing Department

A division within a manufacturing facility where a specific type of processing or production takes place.

Operations

The day-to-day activities required for the continued functioning of a business, focusing on producing goods or providing services.

Weighted-Average Method

An inventory costing method that assigns the same cost to each unit, calculated as the total cost of goods available for sale divided by the total units available.