Riviera Township Reported the Following Data for Its Governmental Activities

question 41

Multiple Choice

Riviera Township reported the following data for its governmental activities for the year ended June 30,20X9:
Additional information available is as follows:
All of the long-term debt was used to acquire capital assets.Cash of $475,000 is restricted for debt service.
-Based on the preceding information,on the statement of net assets prepared at June 30,20X9,what amount should be reported for total net assets?

• A)$2,425,000
• B)$4,200,000
• C)$2,900,000
• D)$3,625,000

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Definitions:

Purchase Discounts Lost

Purchase discounts lost refer to the additional amount paid by a buyer for failing to take advantage of the early payment discount offered by a supplier.

Net Method

An accounting technique used to record purchases or sales of goods after deducting any discounts offered at the time of purchase or sale.

Discounts Lost

Charges incurred from not taking advantage of early payment discounts offered by suppliers.

Net Method

An accounting method for recording purchases where the purchase price includes a cash discount for early payment.