Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 46

A $110,000 payment is made on a long-term liability. Of this amount, $10,000 represents interest. Which of the following is not true
a. Reduce liabilities by $100,000 in the government-wide financial statements.
b. Record a $110.000 expenditure in the fund financial statements.
c. Reduce liabilities by $100,000 in the fund financial statements.
d. Recognize $10,000 interest expense in the government-wide financial statements.