On the Statement of Revenues,expenditures,and Changes in Fund Balance for a Capital

question 9

Multiple Choice

On the statement of revenues,expenditures,and changes in fund balance for a capital projects fund,proceeds of general obligation bonds should be reported:

• A)in the revenue section of the statement.
• B)as a direct addition to the beginning balance of unreserved fund balance.
• C)in the other financing sources (uses)section of the statement.
• D)as a subtraction from construction expenditures.

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Definitions:

Estimated Useful Life

The expected period during which an asset is predicted to be usable for the purpose it was acquired.

Depreciation Expense

An accounting method to allocate the cost of a tangible asset over its useful life to represent wear and tear over time.

Straight-Line Method

A method of calculating depreciation that spreads the cost of an asset evenly over its useful life.

Gain or Loss

The financial result from selling assets or settling liabilities at amounts different from their carrying amount, showing either a profit (gain) or deficit (loss).