2a,b

Using the proper name of the funds, what is the best fund to report the following: The governmental entity makes a $1,000,000 payment to their general contractor for partial payment on a building under construction (In answering this question do not use the word fund, funds, trust or trusts - If you do the question will be read as wrong. However, if the fund has more than one name you must use both and you must be accurte) Answer: Intrerperiod equity refers to a condition whereby a. Current year revenues cover both operating and capital expenditures b. Total tax revenues are approximately the same from year to year c. Taxes are distributed fairly among all taxpayers regardless of income level d. Current year revenues are sufficient to pay for current year expenditures