Under the cash basis of accounting, a certain expense may be incurred in one period but not entered until the following period.
a. True
b. False
Indicate whether the statement is true or false
Question 2
During its calendar year 2012, a city issued 800,000 of bonds to acquire various items of capital equipment. By the end of 2013, the city had spent all the bond proceeds to purchase capital assets.
Accumulated depreciation on the assets was 120,000, and 150,000 of the bonds had been paid off. How much should the city report in its government-wide statement of net position as net investment in capital assets?
a. 0
b. 30,000
c. 630,000
d. 650,000
