Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 80

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.