When a company performs an actual count of goods on hand, this is called a
a. Physical Inventory
b. Inventory Shrinkage
c. Inventory Count
d. Inventory Take
Question 2
A deficit unreserved fund balance was reported in a city Capital Projects Fund balance sheet. Which of the following explanations for the deficit is not plausible?
a. The city financed a substantial portion of the project in the previous year.
b. The city financed current year expenditures by issuing bond anticipation notes that are not general long-term liabilities.
c. The city entered into a two-year construction contract. Transfers from the General Fund will be made each year to cover actual expenditures.
d. All of the above are plausible explanations
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