Question :
83.If the government primarily or secondarily liable for the payment : 1255446
83.If the government is primarily or secondarily liable for the payment of debt principal and interest for a special assessment project,:
A)The tax levy and debt service expenditures should be recorded in an internal service fund.
B)A special revenue fund should account for the proceeds of the debt and construction expenditures
C)The project is accounted for within governmental type funds as if it were a governmental project
D)The debt is not recorded in the government-wide statements
84.With respect to Debt Service Funds, which of the following is true?
A)Payments under capital lease obligations may be reported in debt service funds
B)Debt service funds use accrual accounting
C)Each separate long-term obligation must be accounted for in a separate debt service fund
D)All of the above are true
85.Which of the following statements regarding serial bonds is false?
A)The principal on serial bonds is paid over the term of the bonds.
B)The assets of a debt service fund may include Cash with Fiscal Agent
C)The principal repayment on an annuity serial bonds decreases each year as the outstanding balance decreases
D)If the first payment is delayed for more than a year with equal payments thereafter, the bonds are deferred serial bonds
86.Which of the following is true with respect to long-term debt?
A)Term bonds mature in equal installments over the term of the bond.
B)If a sinking fund is required by creditor or law, the unexpended resources of its debt service fund would be classified as assigned.
C)Resources transferred to the debt service fund from the General Fund would typically be classified as Other Financing Sources by the debt service fund.
D)If bonds supporting a capital project are issued at a premium, typically the premium may be used on capital expenditures.
87.Which of the following is not correct regarding Government Trust Accounting?
A)If a trust is to benefit the government or its citizenry, it should be accounted for in a special revenue or permanent fund.
B)If a trust is to benefit individuals, private organizations, or other governments, it should be accounted for in a private-purpose trust fund.
C)The journal entry to establish a permanent fund would include a credit to Fund Balance – Nonspendable.
D)Trust funds accounted for in a permanent fund use accrual accounting
88.Which of the following projects would normally be accounted for in a capital projects fund?
A)The construction of a police station addition.
B) The construction of a parking garage operated as an enterprise fund.
C)Payment of interest on bonds issued to finance the construction of a new city hall.
D)Both A and B would be accounted for in a capital projects fund.
89.General fixed assets that are acquired with governmental fund resources are reported as assets in the:
A)General Fund.
B)Capital Projects Fund.
C)General Fund or Capital Projects Fund, depending upon which fund provided the resources.
D)None of the above.
90.When a purchase order is issued under a Capital Projects fund, how should the transaction be recorded?
A)Debit Encumbrances and credit Budgetary Fund Balance — Reserve for Encumbrances.
B)Debit Expenditures and credit Budgetary Fund Balance — Reserve for Encumbrances.
C)Debit Expenditures and credit Vouchers payable.
D) Debit Encumbrances Control and credit Vouchers payable.
91.Which of the following lease criteria would not qualify a lease as a capital lease?
A)The lease transfers ownership of the property to the lessee by the end of the lease term.
B)The lease contains an option to purchase the leased property at its fair market value.
C)The lease term is equal to or greater than 75% of the estimated economic life of the leased property.
D)The present value of the minimum lease payments equals or exceeds 90% of the fair value of the leased property.
92.Where should a government report special assessment debt that the government is not liable for in any way?
A)Capital projects fund.
B)Debt service fund.
C)Government-wide statements (not in a fund).
D)None of the above.
