Q25:

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 encumbrances capital equipment

b.

A debit to unreserved fund balance

c.

A credit to revenues proceeds from sale of general fixed assets

d.

A credit to a fixed assets account

Q26:

A property owner after payment of taxes received tax abetment due to his commitments to a local regulations, this will be handled by

a.

Allowance for property tax refund

b.

No need for adjustment

c.

Estimated discount on property taxes

d.

Allowance for uncollectible property taxes