During the Fiscal Year Ended June 30,2009,an Enterprise Fund of St.Cloud

question 42

Multiple Choice

During the fiscal year ended June 30,2009,an enterprise fund of St.Cloud acquired computer equipment costing $110,000 on account and issued $400,000 of long-term bonds.Revenues of the enterprise fund will be used to repay bond interest and principal.What effect did these transactions have on St.Cloud's enterprise fund assets and long-term debt?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

Recognize how revenue and expenses are reported and their impact on net income and financial statements.

Understand the classification of items on the balance sheet and the distinction between assets, liabilities, and equity.

Calculate net income given a set of financial information.

Recognize the importance and procedure of audits in ensuring the credibility of financial statements.

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Definitions:

Satisfactory Solution

A resolution or answer to a problem that meets the minimum requirements or expectations of the involved parties.

Behavioral Decision Theory

A field of study that examines the decision-making processes of individuals, focusing on the actual observable behavior rather than on hypothetical models.

Complete Certainty

A situation where all variables and outcomes in a decision-making process are known and predictable.

Organizational Socialization

The process by which newcomers are transformed from outsiders to participating, effective members of the organization.