Author Question: The General Fund provides a recurring annual subsidy to the Mass Transit Enterprise Fund to keep bus ... (Read 103 times)

Zoey63294 · **on:** Jul 5, 2018

The General Fund provides a recurring annual subsidy to the Mass Transit Enterprise Fund to keep bus fares at a reasonable level. How should the General Fund report the subsidy in its financial statements?

a. as an expenditure
b. as a long-term advance
c. as a transfer out
d. as a reimbursement

Question 2

An increase in a revenue account may also result in an increase in the accounts receivable account.
a. True
b. False
Indicate whether the statement is true or false