The Great Gap University issues long-term debt to build a bridge over the gap between its two main campuses.The debt would be accounted for in the

Question

Quizplus · Accepted Answer

The correct answer is D) Investment in Plant. When a university issues long-term debt for capital projects such as building a bridge, the accounting entry is made in the Investment in Plant fund. This fund tracks the investment in physical assets and infrastructure, including costs associated with their acquisition or construction.

The Great Gap University Issues Long-Term Debt to Build a Bridge