Assume that inspection services were performed by the General Fund department on a capital project that is being accounting for in a Capital Project Fund. The inspection is being charged to the project.
The entry to record this transaction in the Capital Project Fund would be
A. Debit expenditures and credit due to General Fund.
B. Debit capital asset and credit due to General Fund.
C. Debit other financing uses and credit due to General Fund.
D. Debit expenditures and credit revenues.
Question 2
A state enacts a gasoline tax that is restricted for new highway construction. Which fund should be used to account for the proceeds from the tax?
A. Debt Service Fund.
B. General Fund.
C. Capital Projects Fund.
D. General Long-Term Liabilities Fund.
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