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White raven [17]
3 years ago
13

Proceeds of debt issued for the construction or acquisition of capital assets are recognized by the capital projects fund as "ot

her financing sources" and as a liability in the governmental activities journal.A. TRUEB. FALSE
Business
1 answer:
Genrish500 [490]3 years ago
6 0

Answer:

The correct answer is letter "A": True.

Explanation:

In governmental accounting, capital project fund is used to record the resources necessary for major capital assets which are those expected to generate value over the long-run such as <em>buildings, machinery, </em>and<em> vehicles</em>. <em>Current liabilities</em> derived from the capital assets are recognized by capital fund but<em> long-term liabilities </em>are recorded in the governmental activities journal.

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Mekhanik [1.2K]

Answer:

The answer is (A)

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6 0
3 years ago
What does it mean if a company has a debt ratio of 101.5%?
7nadin3 [17]

Explanation:

Debt ratio is basically the ratio between the total debts and the total assets of a company. It shows the percentage of total debts of the company in accordance or in comparison of the total assets. If the debt ratio is high, it means the company has more liabilities than the assets. Higher debt ratio may lead a company towards default.

In this question, 101.5% debt ratio means the total liabilities of the company are 1.5% more than the total assets of the company. This shows that the company's debt ratio is high. Liabilities are more than the assets. In this situation, a company is considered at a risk if precautionary measures are not taken immediately.

6 0
3 years ago
Nicole has a contract to buy 14 cases of hammers from Tyler. Tyler breaches the contract. Even though she can get similar hammer
mario62 [17]

Answer:

B) No, because she can get similar hammers elsewhere.

Explanation:

When someone sues for specific performance he/she is asking the court to order the defendant to complete performance the contract. They are not suing to recover any damages that may have resulted from the breaching of the contract.

In this case, Nicole would have probably been able to sue Tyler for some type of compensatory damages, but since the hammers are such a common good, it would be very difficult for her to obtain an specific performance order.

4 0
3 years ago
Land used for raising crops or livestock is generally called a
lozanna [386]

Answer:

A tract of land used for raising crops or livestockcan be called a field or a farm.

8 0
3 years ago
Read 2 more answers
Companies generate income from their "regular" operations and from other sources like interest earned on the securities they hol
SCORPION-xisa [38]

Answer:

$4,250

Explanation:

The computation of the operating income or EBIT is shown below:

Earning before interest and taxes = Sales reported - operating cost  other than depreciation - depreciation expense

= $12,500 - $7,250 - $1,000

= $4,250

We simply deduct the operating cost and the depreciation expense from the sales reported to arrive the earning before interest and taxes

All other information which is given in the question is not relevant. hence, ignored it

6 0
4 years ago
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