Author Question: Which of the following groups of accounts have a normal debit balance? a. revenues, liabilities, ... (Read 26 times)

dakota nelson · **on:** Jul 5, 2018

Which of the following groups of accounts have a normal debit balance?
a. revenues, liabilities, and capital
b. capital and assets
c. liabilities and capital
d. assets and expenses

Question 2

A city acquired a dump truck for general government use. The government paid nothing down and signed a 10, short-term note payable for the price of the truck, 80,000 . The note will mature in the next fiscal year.

What items should appear in the statement of revenues, expenditures, and changes in fund balance for the General Fund in the year the truck was purchased?
a. Capital outlay expenditures of 80,000, but no interest.
b. Interest expenditures on the note, but no capital outlay expenditures since nothing was paid.
c. Capital outlay expenditures of 80,000 and interest expenditures on the note.
d. Depreciation expenses (depending on the estimated useful life of the truck) and interest expenditures on the note.