General Fixed Assets That Are Acquired with Governmental Fund Resources

question 143

Multiple Choice

General fixed assets that are acquired with governmental fund resources are reported as assets in the:

• A) General Fund.
• B) Capital Projects Fund.
• C) General Fund or Capital Projects Fund, depending upon which fund provided the resources.
• D) None of the above.

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Definitions:

Unsecured Promissory Note

A financial agreement for borrowing money that does not require collateral from the borrower.

Total Book Value

The net value of a company's assets found on its balance sheet, calculated by subtracting total liabilities from the total assets.

Corporate Promoter

An individual or entity involved in establishing a company or raising capital for it before its incorporation.

Common Shares

Represents ownership equity in a corporation, providing voting rights and dividends to shareholders.