Exam 5: Accounting for Other Governmental Fund Types: Capital Projects, debt Service, and Permanent

The following description provides the best definition for which fund: Accounts for resources that are legally restricted and both earnings and principal may be used to support government programs.

The General Fund is always considered to be a major fund.When are other governmental funds considered major?

Bond refunding is repurchasing bonds from bondholders using residual money left over after a capital project has been completed.

Which two governmental funds are commonly used to acquire capital assets?

Use the following to answer the next six questions: During the fiscal year ended December 31, 2012, the City of Johnstown issued 6% general obligation serial bonds in the amount of $3,000,000 at 101 ($3,030,000) and used $2,970,000 of the proceeds to construct a fire station. The $30,000 premium was transferred to a debt service fund. The $30,000 left in the capital projects fund at the end of the project was transferred to the debt service fund. The bonds were dated April 1, 2012 and paid interest on October 1 and April 1. The first of 10 equal annual principal payments was due on April 1, 2013. -How would the $30,000 premium be accounted for?

If the government is primarily or secondarily liable for the payment of debt principal and interest for a special assessment project:

With respect to financial reporting for governmental funds,which of the following statements is true?

Cash provided by the General Fund for a capital project would be recorded in a capital projects fund as a (an):

Newly constructed buildings are reported in a capital projects fund using which method?

Fund balances of debt service funds are classified as assigned or unassigned according to the categories identified in GASB Statement 54.

Premiums generated from the issuance of bonds for a capital projects fund are generally:

With respect to Capital Projects Funds,GASB standards require the accrual basis of accounting.

Unexpended resources transferred to the debt service fund from the General Fund would typically be classified as Restricted Fund Balance.

Which of the following would be accounted for as a permanent fund?

When governments construct projects that are financed with special assessment debt,to be paid back by affected property owners,those projects would never be accounted for in capital projects funds.

Proceeds of debt issues should be recognized by a Capital Projects fund at the time the debt is authorized.

Which of the following is true regarding accounting for investments of permanent funds?

Write yes or no in each box to indicate whether each property applies to the following funds:

Which of the following is true regarding the governmental fund financial statements?

Capital Project funds: