Author Question: When preparing an income statement vertical analysis, each revenue and expense is expressed as a ... (Read 72 times)

deesands · **on:** Jul 5, 2018

When preparing an income statement vertical analysis, each revenue and expense is expressed as a percent of net income.
a. True
b. False

Indicate whether the statement is true or false

Question 2

A city's Enterprise Fund sold land, which rarely occurs in the government. The land was originally purchased at 35,000 and sold for 235,000 . The Enterprise fund would record the sale as a

A. Debit to cash for 235,000 and credit to non-operating revenues for 235,000.
B. Debit to cash for 235,000 and credit to operating revenues for 235,000.
C. Debit to cash for 235,000, a credit to capital assets (land) for 35,000, and a credit to non-operating revenues for 200,000.
D. Debit to cash for 235,000, a credit to capital assets (land) for 35,000, and credit to special item for 200,000.