Assume that in the 20X7 fiscal year the General Fund collected 10,300 of taxes that were levied and due in 20X5 . What worksheet conversion adjustment would be necessary as the government-wide statements were being prepared?
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a. Cash 10,300Property Tax Revenue 10,300
b. Property Tax Revenue 10,300Net Assets 10,300
c. Cash 10,300Net Assets 10,300
d. Cash 10,300
Deferred Revenue 10,300
e. Property Tax Revenue 10,300
Deferred Revenue 10,300
Question 2
How does paying a liability in cash affect the accounting equation?
a. assets increase; liabilities decrease
b. assets increase; liabilities increase
c. assets decrease; liabilities decrease
d. liabilities decrease; owner's equity increases
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