Q29:

Internal accounting for governmental and not for profit organizations concentrate on the controls required to maintain legal compliance.

a.

FALSE

b.

TRUE

Q30:

Which of the following statements is true regarding accounting for capital assets by state and local governments?

a.

Capital outlays are recorded as capital outlay expenditures in the General Fund.

b.

Capital outlays are recorded as expenditures in Internal Service Fund

c.

Capital outlays are recorded as assets in enterprise Funds, but the depreciation on those assets is recorded in the General Fund.

d.

Capital outlays are recorded as assets in Special Revenue Funds and are depreciated in those funds.