Journalizing and posting closing entries must be completed before ...

[Charlie]

Journalizing and posting closing entries must be completed before financial statements can be prepared.
 a. True
  b. False
 
   Indicate whether the statement is true or false

Question 2

The City of Maysville's General Fund balance sheet for its December 31, 2013 year end shows inventory of 28,000 and prepaid rent of 10,000 . The city also had 60,000 of outstanding encumbrances in its General Fund at year-end.
 
  In December 2013, a grantor provided the City with 42,000 that must be used to pay musicians who perform in the city's series of summer concerts in the park during 2014 . How much should the city report as nonspendable fund balance in its General Fund on December 31, 2013?
   a. 10,000
   b. 28,000
   c. 38,000
   d. 42,000
   e. 60,000

[wtf444]

Answer to Question 1

False

Answer to Question 2

c