Author Question: A city constructs a new building by issuing debt in the amount of 3 million. How should the city ... (Read 81 times)

kellyjaisingh · **on:** Jul 5, 2018

A city constructs a new building by issuing debt in the amount of 3 million. How should the city report the debt proceeds in its Capital Projects Fund statement of revenues, expenditures, and changes in fund balance?

a. as a revenue
b. as an other financing source
c. as a liability captioned general long-term obligations
d. as a liability captioned due to the debt service fund

Question 2

Source documents provide the input for the accounting process.
a. True
b. False
Indicate whether the statement is true or false