Author Question: A fiscal year that ends when business activities have reached their lowest point is called the ... (Read 125 times)

james0929 · **on:** Jul 5, 2018

A fiscal year that ends when business activities have reached their lowest point is called the natural business year.
a. True
b. False

Indicate whether the statement is true or false

Question 2

(Identifying transactions to the appropriate fund - relatively simple situations)

A small village maintains a General Fund, Special Revenue Fund, Capital Projects Fund, and Internal Service Fund.

State the fund (or funds) that would be used to record each of the following events.
a. Property taxes were collected to finance the day-to-day activities of the village.
b. The village issued debt for the purpose of constructing a new firehouse.
c. The village paid an invoice for construction of a new firehouse.
d. Mechanics' salaries were paid by the Motor Pool Fund, which was established to provide a centralized location for servicing all village vehicles on a user-charge basis.
e. The village paid the salaries of its police officers.
f. The village received a check from the state to help finance the new firehouse.
g. The village received a grant, which must be used for beautifying and creating nature walks within the park.
h. The Motor Pool Fund sent an invoice for maintenance of police and fire vehicles.

johnpizzaz · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

True

Answer to Question 2

a. General Fund
b. Capital Projects Fund
c. Capital Projects Fund
d. Internal Service Fund
e. General Fund
f. Capital Projects Fund
g. Special Revenue Fund
h. Internal Service Fund and General Fund