Solved

The City of Ruth Owns and Operates an Electric Utility

Question 22

Multiple Choice

The City of Ruth owns and operates an electric utility. The utility purchases new electric transmission lines for $6,000,000 so that it can provide electricity to new customers. This purchase will most likely


A) Increase expenditures reported in the General Fund by $6,000,000.
B) Increase capital assets reported in the Capital Projects Fund by $6,000,000.
C) Increase capital assets reported in the Enterprise Fund by $6,000,000.
D) Increase expenses reported in the Enterprise Fund by $6,000,000.

Correct Answer:

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