Author Question: Assume a city's General Fund has 75,000 of inventory, 600,000 of long-term intergovernmental loans ... (Read 71 times)

dakota nelson · **on:** Jul 6, 2018

Assume a city's General Fund has 75,000 of inventory, 600,000 of long-term intergovernmental loans receivable, 250,000 long-term loans due from other funds, and 1,900,000 of investments.

Based solely on this information, the city's reserved fund balance would be
a. 925,000
b. 600,000
c. 1,900,000
d. 675,000
e. 850,000
f. either item a or e.

Question 2

If total assets decreased by 88,000 during a period of time and owner's equity increased by 71,000 during thesame period, then the amount and direction (increase or decrease) of the period's change in total liabilities is
a. 17,000 increase
b. 88,000 decrease
c. 159,000 increase
d. 159,000 decrease