A Capital Projects Fund awards the construction of a building to a construction contractor at a contract cost of $1,000,000. What entry is prepared by the Capital Projects Fund? A) Debit Expenditures $1,000,000, Credit Liability $1,000,000 B) Debit Building $1,000,000, Credit Expenditures $1,000,000 C) Debit Other Financing Uses $1,000,000, Credit Expenditures $1,000,000 D) Debit Encumbrances $1,000,000, Credit Reserve for Encumbrances $1,000,000
49) A Capital Projects Fund awards the construction of a building to a construction contractor at a contract cost of $1,000,000. What entry is prepared by the Capital Projects Fund?
A) Debit Expenditures $1,000,000, Credit Liability $1,000,000
B) Debit Building $1,000,000, Credit Expenditures $1,000,000
C) Debit Other Financing Uses $1,000,000, Credit Expenditures $1,000,000
D) Debit Encumbrances $1,000,000, Credit Reserve for Encumbrances $1,000,000
50) Which statement below is incorrect with respect to the Government-wide financial statements?
A) All governmental fund categories must convert to the modified accrual basis of accounting.
B) It is necessary to eliminate interfund balances within the governmental funds.
C) Capital lease liabilities associated with governmental funds must be included on the Government-wide financial statements.
D) All fixed assets and long-term debt for governmental funds must be included on the Government-wide financial statements.
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