QUESTION 15

Polk County's solid waste landfill operation is accounted for in a governmental fund. Polk used available cash to purchase equipment that is included in the estimated current cost of closure and post-closure care of this operation. How would this purchase affect the asset amount in Polk's governmental capital assets and the liability amount in Polk's government-wide financial statements?

Asset AmountLiability Amount

1. IncreaseDecrease
2. IncreaseNo effect
3. No effectDecrease
4. No effectNo effect