Author Question: If an Internal Service Fund provides 60 of its services to the General Fund and 40 of its services ... (Read 83 times)

AEWBW · **on:** Jul 5, 2018

If an Internal Service Fund provides 60 of its services to the General Fund and 40 of its services to an Enterprise Fund, then governmental activities column in the government-wide financial statements will

A. Include 60 of the capital assets of the Internal Service Fund.
B. Reflect a reduction in expenses equal to 60 of the profit the Internal Service Fund reported for the year.
C. Include none of the capital assets of the Internal Service Fund.
D. Reflect a reduction in expenses equal to 100 of the profit the Internal Service Fund reported for the year.

Question 2

How will the following adjusting journal entry affect the accounting equation? Unearned Subscriptions 11,500 Subscriptions Earned 11,500
a. Increase assets, increase revenues
b. Increase liabilities, increase revenues
c. Decrease liabilities, increase revenues
d. Decrease liabilities, decrease revenues