Question : 93.If taxes and/or special assessments levied by the General Fund, : 1255447

93.If taxes and/or special assessments are levied by the General Fund, and then are subsequently transferred to the debt service fund, they are:

A)Recorded as revenues of the debt service fund.

B)Included in the revenues of the General Fund and are also reported by the General Fund as transfers out to the debt service fund.

C)Included as transfers out in the General Fund but are not as revenue in that fund.

D)Recorded as an expense and voucher payable by the General Fund and are recorded as a revenue and receivable by the debt service fund.

94.If taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are:

A)Included as a liability of the General Fund.

B)Recorded as operating transfers to the debt service fund.

C)Included as revenues of the debt service fund.

D)Both A and B are correct.

95.Which of the following bond types has a payment schedule in which the amount of annual principal repayment is scheduled to increase each year by approximately the same amount that interest payments decrease?

A)Regular.

B)Deferred.

C)Annuity.

D)Irregular.

96.Governmental funds, other than the General Fund, are considered major if:

I.              Total Assets, Liabilities, Revenues, or Expenditures of that individual governmental fund are at least 10% of the corresponding total (assets, liabilities, and so forth) for all governmental funds.

II.              Total Assets, Liabilities, Revenues, or Expenditures of the individual governmental fund are at least 5% of the corresponding total for all governmental and enterprise funds combined.

A)I only.

B)II only.

C)Either I or II, but need not be both.

D)Both I and II.

Use the following to answer the next five questions:

On October 1, 2013, the City of Mizner issued $3,500,000 in 4%, general obligation bonds at 101 for the purpose of constructing an addition to City Hall. The premium was transferred to a debt service fund. A total of $3,475,000 was used to construct the addition, which was completed prior to June 30, 2014. The remaining funds were transferred to the debt service fund. The bonds were dated October 1, 2013, and paid interest on April 1 and October 1. The first of 20 annual principal payments of $175,000 is due October 1, 2014.  The fiscal year for Mizner is July 1- June 30.

97.In addition to a $3,500,000 liability in the government-wide Statement of Net Assets, how would the bond sale be reported?

A)As a $3,535,000 other financing source in the capital projects fund, a $35,000 other financing use in the capital projects fund, a $35,000 other financing source in the debt service fund.

B) As a $3,500,000 other financing source in the capital projects fund, a $35,000 other financing source in the debt service fund, and as a $3,500,000 liability in the debt service fund.

C)As a $3,500,000 revenue in the capital projects fund, a $35,000 revenue in the debt service fund, and a $3,500,000 expenditure in the debt service fund.

D)As a $3,475,000 revenue in the capital projects fund and a $25,000 revenue in the debt service fund.

98.In addition to a capital asset in the government-wide Statement of Net Assets, how would the construction costs of $3,475,000 be reported at year-end?

A)As an expenditure of the capital projects fund and an expense in the government-wide Statement of Activities.

B)As an expenditure of the capital projects fund and a capital asset in the government-wide Statement of Net Assets.

C)As an expenditure of the capital projects fund only.

D)As a capital asset in the Statement of Net Assets only.

99.What amount would be reported as debt service expenditures in the year ended June 30, 2014?

A)$315,000.

B)$140,000.

C)$105,000.

D)$        -0-.

100.              What would be the amount of debt service expenditures reported in the fiscal year ended June 30, 2015?

A)$140,000.

B)$175,000.

C)$315,000.

D)$345,625.

101.              How would the government account for the unused bond proceeds?

A)As a revenue in the debt service fund and as an expenditure in the capital projects fund.

B)As an other financing source in the capital projects fund and as an other financing use in the debt service fund.

C)As an other financing source in the government-wide Statement of Activities.

D)As an other financing source in the debt service fund and as an other financing use in the capital projects fund.

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

A) An intergovernmental grant of $500,000 to a city to be used for low income housing.

B)A gift of $500,000 to a city, to be invested permanently, with the proceeds to be distributed as scholarships.

C)A gift of $500,000 to a city, to be invested permanently, with the proceeds to be used to maintain the city cemetery.

D)A gift of $500,000 to a city to be used for a new caretaker’s residence at the local cemetery.