Author Question: The City of Ruth owns and operates an electric utility. The utility purchases new electric ... (Read 168 times)

awywial · **on:** Jul 6, 2018

The City of Ruth owns and operates an electric utility. The utility purchases new electric transmission lines for 6,000,000 so that it can provide electricity to new customers. This purchase will most likely

A. Increase expenditures reported in the General Fund by 6,000,000.
B. Increase capital assets reported in the Capital Projects Fund by 6,000,000.
C. Increase capital assets reported in the Enterprise Fund by 6,000,000.
D. Increase expenses reported in the Enterprise Fund by 6,000,000.

Question 2

Assets are
a. always lower than liabilities
b. equal to liabilities less owner's equity
c. the same as expenses because they are acquired with cash
d. financed by the owner and/or creditors