balance sheets.

EX$.2-4$

A special district's balance sheet may not capture its economic

resources and obligations.

A special district accounts for its general fund $($its only

fund$)$ on a modified accrual basis. In a particular period, it

engaged in the following transactions:

It issued $$20$ million in long$-$term bonds.

It acquired several tracts of land at a total cost of

$$4$ million, paying the entire amount in cash.