123. Which of the following would be true as of January 1, 2014?
A) An entry would be made debiting Expenditures and crediting Other Financing Sources-Capital Leases in a governmental fund, both in the amount of $40,000.
B)An entry would be made debiting Equipment and crediting Capital Leases Payable in a governmental fund, both in the amount of $33,699.
C)An entry would be made debiting Capital Expenditure and crediting Capital Leases Payable in a governmental fund, both in the amount of $33,699.
D)An entry would be made debiting Expenditures and crediting Other Financing Sources-Capital Leases in a governmental fund, both in the amount of $33,699.
124.Premiums generated from the issuance of bonds for a capital projects fund are generally:
A) Transferred to the General Fund.
B) Transferred to the debt service fund.
C) Retained in the capital projects fund.
D) None of the above.
125.The following are sources of funds for the debt service fund except:
A) Tax levies specifically designed for debt service.
B) General taxes levied by the General Fund and transferred to the debt service fund.
C) Special assessments levied against property.
D) All of the above are sources of funds for the debt service fund.
126.Which of the following is/are true regarding Capital Projects Funds?
A) A major source of funding for capital projects funds is the issuance of long-term debt.
B) Capital project funds only exist for the duration of the project for which it is created.
C) Capital Project funds use the Modified Accrual Basis of Accounting.
D) All of the above are true.
127.A non-expendable trust which benefits a government or its citizenry and which stipulates that earnings only (not principal) may be used for its provided purpose should be reported in a:
A) Special Revenue Fund.
B) Permanent Fund.
C) Private-purpose Trust Fund.
D) None of the Above.
128.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.
A) Capital projects.
B) Special Revenue.
C) General Fund.
D) Permanent.
129.A construction contract was issued for an addition to the county jail in the amount of $2,100,000. When the project was approximately half finished, the contractor submitted an invoice for payment of $1,050,000. Which partial entry below is not required to record this transaction?
A) Credit Contracts Payable $1,050,000.
B) Debit Construction Expenditures $1,050,000.
C) Credit Encumbrances Control $2,100,000.
D) Credit Encumbrances Control $1,050,000.
130.A special assessment tax is
A) Assessed against all property owners following a referendum in which voters approved the special project being constructed.
B) A waiver of property taxes for businesses willing to locate within a government’s jurisdiction.
C) Assessed only against certain property owners who are deemed to benefit from the service or project being paid for by the proceeds of the special assessment levy.
D) None of the above
131.Which of the following serial bonds has the first scheduled installment delayed for a period of more than 1 year after the date of the issue?
A) Annuity Serial Bonds.
B) Regular Serial Bonds.
C) Irregular Serial Bonds.
D) Deferred Serial Bonds.
132.Capital project funds record the proceeds of debt issued as:
A) Revenues.
B) Other Financing Sources.
C) Expenses.
D) Liabilities.
