Question
Why do capital outlay and depreciation move in opposite directions on the change reconciliation?
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Answer
Capital outlay is added back; depreciation is subtracted.
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Question
What is the most-tested sign trap in government-wide conversion?
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Answer
Bond proceeds are subtracted; principal repayments are added back.
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Question
What adjustment is made for principal repayment on the conversion worksheet?
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Answer
Dr Bonds Payable; Cr Expenditures–Principal.
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Question
How should bond proceeds be adjusted on the conversion worksheet?
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Answer
Dr Bond Proceeds; Cr Bonds Payable.
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