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Alto City properly records its financial transactions using both the Fund-Type basis (modified accrual) and the Government-Wide basis (full accrual) accounting methods. For each of
Alto City properly records its financial transactions using both the Fund-Type basis (modified accrual) and the Government-Wide basis (full accrual) accounting methods. For each of the following transactions, list whether the item should be recorded as either an Asset (A), Liability (L) , Revenue (R), or Expense/Expenditure (E) by placing either an A, L, R, or E on the line provided. Note: For some items, more than one letter can be used. Please state if it belong under Fund Type or Government wide
Fund-Type Government-Wide
- Purchased a new fire engine (estimated 15 year life)
- Invested its surplus funds in equity investments.
- Prepaid the rent for the next three months.
- Made the monthly payment on a six-month lease.
- Completed the construction of a new bridge.
- Received a work of art from a donor.
- Purchased a work of art.
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