A city constructs curbing in a new neighborhood and finances it as a special assessment. Under what condition should these transactions be recorded in an agency fund? Never; the work is reported in the capital projects funds. Only if the city is secondarily liable for any debt incurred to finance construction costs. Only if the city is in no way liable for the costs of the construction. In all cases.
A city constructs curbing in a new neighborhood and finances it as a special assessment. Under what condition should these transactions be recorded in an agency fund? Never; the work is reported in the capital projects funds. Only if the city is secondarily liable for any debt incurred to finance construction costs. Only if the city is in no way liable for the costs of the construction. In all cases.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A city constructs curbing in a new neighborhood and finances it as a special assessment. Under what condition should these transactions be recorded in an agency fund?
- Never; the work is reported in the capital projects funds.
- Only if the city is secondarily liable for any debt incurred to finance construction costs.
- Only if the city is in no way liable for the costs of the construction.
- In all cases.
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