Q1:

If the city of Castle town sells an ambulance, which had been purchased by its general fund several years earlier, to a local rock group, the entry to record this sale on the books of the general fund should include which of the following:

a.

A debit to unreserved fund balance

b.

A credit to a fixed assets account

c.

A credit to revenues proceeds from sale of general fixed assets

d.

A debit to encumbrances capital equipment

Q2:

Control account is a summary account whose balance is equal to the total of the individual balances of its subsidiary accounts.

a.

False

b.

True