Which of the following entries records the payment of insurance for the current month?
a. Cash, debit; Insurance Expense, credit
b. Insurance Expense, debit; Cash, credit
c. Insurance Expense, debit; Accounts Receivable, credit
d. Prepaid Insurance, debit; Cash, credit
Question 2
A city a long-term general government liability for compensated absences of 700,000 at the beginning of the year and 650,000 at the end of the year.
What adjustment is needed to fund balance to reconcile the governmental funds balance sheet information to net assets for governmental activities in the government-wide statement?
a. 50,000
b. (50,000)
c. (650,000)
d. No adjustment is required on this reconciliation
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