A deficit unassigned fund balance was reported in a city Capital ...

[magmichele12]

A deficit unassigned fund balance was reported in a city Capital Projects Fund balance sheet. Which of the following explanations for the deficit is not plausible?
 
  A. The city financed a substantial portion of the project in the previous year.
  B. The city financed current year expenditures by issuing bond anticipation notes that are not general long-term liabilities.
  C. The city entered into a two-year construction contract. Transfers from the General Fund will be made each year to cover actual expenditures.
  D. The city had a large assigned fund balance.

Question 2

An adjusting entry would adjust an expense account so the expense is reported when incurred.
 a. True
  b. False
 
   Indicate whether the statement is true or false

[kingdude89]

Answer to Question 1

A

Answer to Question 2

True