Revenues and expenses should be recorded in the same period to which they relate.
a. True
b. False
Indicate whether the statement is true or false
Question 2
The city's Capital Projects Fund had an excess of expenditures over revenues for the current year. Which of the following explanations for the excess isnot plausible?
A. The city financed a substantial portion of the project in the previous year.
B. The city financed a significant portion of the project by issuing long-term bonds during the year
C. The city financed a significant portion of the project from transfers from the General Fund.
D. All of the above are plausible explanations.
