Author Question: A transaction in which a government issues general obligation bonds to finance the construction of a ... (Read 77 times)

Garrulous · **on:** Jul 6, 2018

A transaction in which a government issues general obligation bonds to finance the construction of a new police station would

A. Increase liabilities in a Debt Service Fund.
B. Increase liabilities in a Capital Projects Fund.
C. Decrease fund balance in a Debt Service Fund.
D. Increase fund balance in a Capital Projects Fund.

Question 2

Earning revenue
a. increases assets, increases owner's equity
b. increases assets, decreases owner's equity
c. increases one asset, decreases another asset
d. decreases assets, increases liabilities