Explain the interrelationship between the balance sheet and the ...

[go.lag]

Explain the interrelationship between the balance sheet and the statement of cash flows.

Question 2

A city government purchased a new fire truck in Year 1 for 270,000 . The city incurred an additional 30,000 in transportation and calibration costs to ready it for use.
 
  It has an estimated useful life of 20 years, though it is being financed over a 15 year period. The amount of depreciation that will be reported each year in the General Fund will be
  A. 0.
  B. 13,500.
  C. 15,000.
  D. 18,000.

[medine]

Answer to Question 1

The cash reported on the balance sheet is also reported as the end-of-period cashon the statement of cash flows.

Answer to Question 2

A

[go.lag]

Thank you

[medine]

No problemo