Author Question: A government received insurance proceeds of 35,000 in the General Fund for water and smoke damage ... (Read 70 times)

jayhills49 · **on:** Jul 5, 2018

A government received insurance proceeds of 35,000 in the General Fund for water and smoke damage that occurred at City Hall. What journal entry best describes the accounting treatment in the General Fund for the receipt of these funds?

A. Debit cash and credit revenues.
B. Debit cash and credit other financing sources.
C. Debit cash and credit expenditures.
D. Debit cash and credit other financing uses.

Question 2

In accordance with the debit and credit rules, which of the following is true?
a. Debits increase assets.
b. Credits increase assets.
c. Debits increase both assets and capital.
d. Credits increase both assets and liabilities.