MC2-1.3. Several years ayo, a city cutablishod a fund to retire yeneral obligation boods iasued foe the puppose Lo 2 of constructing a new police station. This year the city made a $50,000 contribution to that fund from is general revenues. The fand also fealized $15,000 is revenue from its inveament. The bonds due this year were retired. This year's transactions require acconenting recognilion in which funds? a. General Fund and Capital Projects Fund b. Debt Service Fund and Special Revenae Fund c. Debe Service Fund and General Fund d. Capital Projects Fund and Debt Service Fund MC2-14. Which of the following statements is irue regarding the accounting measurement implications of LO 2 the current financial resources measurement focus and modified accrual basis of accounting? a. Capital assets are recorded as assets when they are acquired. b. Property tax revenues are recognized in the year the tax is levied regardless of when the laxes are collected in cash. C. Expenditures and liabilities for salaries are recognized when incurred. d. A fund liability is recorded when cash from the sale of bonds is received