For Each of the Following Transactions, Select the Area of Accounting

question 76

Essay

For each of the following transactions, select the area of accounting records in which an entry will be recorded for governmental fund financial statements and for government-wide financial statements.
(A) General fund only.
(B) Governmental activities only.
(C) General fund and Governmental activities.
(D) General fund and Debt service fund.
(E) Capital projects fund and Governmental activities.
(F) Debt service fund and Governmental activities.
(G) Special revenue fund and Governmental activities.
___ (1.) The city council adopts an annual budget for the general fund.
___ (2.) Property taxes are levied.
___ (3.) Computers are ordered for the fire department.
___ (4.) A transfer of funds is made from the general fund to the debt service fund.
___ (5.) The principal and interest of a bond are paid.
___ (6.) A building is acquired for the police department, and renovations begin immediately.
___ (7.) Depreciation on fire trucks is recorded.
___ (8.) Citizens are assessed for a street lighting project that has been legally restricted for those
citizens.
___ (9.) A grant is received to landscape tree-lined areas beside city-owned streets.
___ (10.) The city spends grant money received in (9.) above and landscapes the tree-lined areas
beside the streets for which the grant money was received.

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Definitions:

Variable Costs

are expenses that vary directly with the level of production or output.

AVC

Average Variable Cost refers to the total variable costs per unit of output in economics, helping businesses analyze production expenses.

ATC

Average Total Cost, which is the total cost per unit of output produced, calculated by adding all production costs and dividing by the number of units produced.

Marginal Output

The increase in output resulting from a one-unit increase in the level of input, while holding other inputs constant.