Question 1

Capital projects funds are not normally included in the Budgetary Comparison Schedule.

Accepted Answer

A) True 
 B)False

Question 2

The journal entry for the Debt Service fund upon the receipt of money from the General Fund would be:

Accepted Answer

A)  Debit to Cash and a credit to Transfers payable. 
B)  Debit to Transfer In and credit to Cash. 
C)  Debit to Cash and credit to Transfer In. 
D)  Debit to cash and credit to Transfer Out 
A)  Debit to Cash and a credit to Transfers payable. 
B)  Debit to Transfer In and credit to Cash. 
C)  Debit to Cash and credit to Transfer In. 
D)  Debit to cash and credit to Transfer Out

Question 3

Net assets represented by supplies and prepaid expenses are classified in governmental funds as Nonspendable Fund balance.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true regarding the Governmental Fund Statement of Revenues,Expenditures,and Changes in Fund Balances?

Accepted Answer

A)  Revenues are generally reported by source. 
B)  Expenditures are generally reported by object classification. 
C)  Both of the above are true. 
D)  Neither of the above is true. 
A)  Revenues are generally reported by source. 
B)  Expenditures are generally reported by object classification. 
C)  Both of the above are true. 
D)  Neither of the above is true.

Question 5

An annuity serial bond is one where the amount of the principal increases each year by the same amount that the interest payments decrease.

Accepted Answer

A) True 
 B)False

Question 6

A special assessment tax is

Accepted Answer

A)  Assessed against all tax payers regardless of who benefits. 
B)  Assessed randomly to taxpayers. 
C)  Never assessed to anyone. 
D)  Assessed only against certain taxpayers who are deemed to benefit from the service or project being paid for by the proceeds of the special assessment levy. 
A)  Assessed against all tax payers regardless of who benefits. 
B)  Assessed randomly to taxpayers. 
C)  Never assessed to anyone. 
D)  Assessed only against certain taxpayers who are deemed to benefit from the service or project being paid for by the proceeds of the special assessment levy.

Question 7

The City of Little River had the following transactions related to the construction of a new courthouse.
(a)1/2/09:
 20 year 6% General Obligation Serial Bonds with a face value of $2,000,000 are issued at 101.Interest payments are made on Jan.1 and July 1 of each year.The premium was transferred into the Debt Service Fund.The General Fund will fully fund each payment as they become due.
(b)3/1/09:
 Land is purchased for a new park at a cost of $200,000.
(c)3/1/09:
 A contract is signed for landscaping and construction of various structures in the park in the amount of $1,800,000.
(d)6/15/09:
 $110,000 is transferred from the General Fund for the 7/1 payment due on the courthouse fund serial bonds.
(e)7/1/09:
 Interest ($60,000)and principal ($50,000)are paid on the courthouse fund serial bonds.
(f)12/1/09:
 Receive an invoice for progress completed to date on the courthouse construction project in the amount of $385,000.
(g)12/27/09:
 $58,500 is transferred from the General Fund for the 1/1/10 interest payment due on the courthouse fund serial bonds.Interest is accrued as of 12/31/09,following the exception permitted by GASB.
Required:
 Prepare a Statement of Revenues,Expenditures and Changes in Fund Balance for the Capital Projects and Debt Service Funds.Assume this is the first year for each fund (beginning fund balances are zero)and the City has no other long-term debt than that described above.Use separate columns for the two funds

Accepted Answer

The answer of The City of Little River had the...

Question 8

Funds whose earnings benefit individuals,private organizations,or other governments are reported in permanent funds.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is false?

Accepted Answer

A)  Supplies and prepaid expenses are classified in governmental funds as Nonspendable Fund balance. 
B)  Capital Projects, debt service and permanent funds do not typically record budgets. 
C)  Debt service and permanent funds do not record encumbrances. 
D)  Principal of permanent funds is classified as Committed Fund Balance. 
A)  Supplies and prepaid expenses are classified in governmental funds as Nonspendable Fund balance. 
B)  Capital Projects, debt service and permanent funds do not typically record budgets. 
C)  Debt service and permanent funds do not record encumbrances. 
D)  Principal of permanent funds is classified as Committed Fund Balance.

Question 10

Debt service and permanent funds do not typically record encumbrances.

Accepted Answer

A) True 
 B)False

Capital projects funds are not normally included in the Budgetary Comparison Schedule.

The journal entry for the Debt Service fund upon the receipt of money from the General Fund would be:

Net assets represented by supplies and prepaid expenses are classified in governmental funds as Nonspendable Fund balance.

Which of the following is true regarding the Governmental Fund Statement of Revenues,Expenditures,and Changes in Fund Balances?

An annuity serial bond is one where the amount of the principal increases each year by the same amount that the interest payments decrease.

A special assessment tax is

Funds whose earnings benefit individuals,private organizations,or other governments are reported in permanent funds.

Which of the following statements is false?

Debt service and permanent funds do not typically record encumbrances.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

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

Capital projects funds are not normally included in the Budgetary Comparison Schedule.

The journal entry for the Debt Service fund upon the receipt of money from the General Fund would be:

Net assets represented by supplies and prepaid expenses are classified in governmental funds as Nonspendable Fund balance.

Which of the following is true regarding the Governmental Fund Statement of Revenues,Expenditures,and Changes in Fund Balances?

An annuity serial bond is one where the amount of the principal increases each year by the same amount that the interest payments decrease.

A special assessment tax is

Funds whose earnings benefit individuals,private organizations,or other governments are reported in permanent funds.

Which of the following statements is false?

Debt service and permanent funds do not typically record encumbrances.

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Proprietary Funds

Fiduciary Trustfunds

Government-Wide Statements, capital Assets, long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters