Author Question: For a sale of 300, on which 8 percent sales tax is charged, the amount debited to Accounts ... (Read 70 times)

torybrooks · **on:** Jul 6, 2018

For a sale of 300, on which 8 percent sales tax is charged, the amount debited to Accounts Receivable is 324.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Assume that Kelly County issues 3,000,000 in general obligation bonds to build a new fire station and 7,000,000 in revenue bonds to finance the upgrade of its water treatment facility. How will these transactions affect the funds of the county?

a. Financial assets of the Capital Projects Fund will increase by 10,000,000, as will the related fund liabilities.
b. Financial assets and related fund liabilities of the Capital Projects Fund will increase by 3,000,000; current assets and long-term liabilities will increase by 7,000,000 in the Water Enterprise Fund.
c. Financial assets, but not the related fund liabilities, will increase in the General Fund by 10,000,000.
d. Financial assets, but not the related fund liabilities, will increase in the Capital Projects Fund by 3,000,000; current assets and the long-term liabilities will increase by 7,000,000 in the Water Enterprise Fund.
e. Financial assets and related fund liabilities will increase in the Debt Service Fund by 10,000,000.