A computer was purchased from unrestricted resources for a general government department. The government paid cash for the computer at the purchase date. Which of the following is not an effect of this transaction in the General Fund?

Question

Quizplus · Accepted Answer

The purchase of the computer results in an increase in a capital asset, which is recorded in the government-wide financial statements. However, there is no effect on the General Fund since this fund only records current assets, liabilities, and fund balance. Therefore, choice B is not an effect of the transaction in the General Fund. Choices A, C, and D are all correct effects in the General Fund.

A Computer Was Purchased from Unrestricted Resources for a General