Question 1

Budgets are typically recorded for Capital Projects Funds.

Accepted Answer

A) True 
 B)False

Question 2

With respect to Permanent Funds,which of the following is not true?

Accepted Answer

A)  The principal is classified as Nonspendable Fund balance 
B)  Permanent Funds are created when resources are provided by private donation. 
C)  Earnings in excess of expenditures must be added to principal corpus. 
D)  Permanent Funds use the current financial resources measurement focus. 
A)  The principal is classified as Nonspendable Fund balance 
B)  Permanent Funds are created when resources are provided by private donation. 
C)  Earnings in excess of expenditures must be added to principal corpus. 
D)  Permanent Funds use the current financial resources measurement focus.

Question 3

Which of the following is a common source of funding for capital projects?

Accepted Answer

A)  Issuance of long term debt 
B)  Proceeds of dedicated taxes 
C)  Grants from other governments 
D)  All of the above are sources of funding for capital projects 
A)  Issuance of long term debt 
B)  Proceeds of dedicated taxes 
C)  Grants from other governments 
D)  All of the above are sources of funding for capital projects

Question 4

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?

Accepted Answer

A)  Regular. 
B)  Deferred. 
C)  Annuity. 
D)  Irregular. 
A)  Regular. 
B)  Deferred. 
C)  Annuity. 
D)  Irregular.

Question 5

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

Accepted Answer

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 
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

Question 6

When a capital project has been constructed entirely with bond proceeds and funds are left over at the end of the project,which of the following would normally take place?

Accepted Answer

A)  The funds would be transferred to a debt service fund; the capital projects fund would debit Other Financing Uses-Transfers Out and the debt service fund would credit Other Financing Sources-Transfers In. 
B)  The funds would be transferred to a debt service fund; the capital projects fund would debit Expenditures and the debt service fund would credit Other Financing Sources-Transfers In. 
C)  The funds would be transferred to the General Fund and expended for any purpose desired by the management of the government. 
D)  The funds would be returned to the bondholders. 
A)  The funds would be transferred to a debt service fund; the capital projects fund would debit Other Financing Uses-Transfers Out and the debt service fund would credit Other Financing Sources-Transfers In. 
B)  The funds would be transferred to a debt service fund; the capital projects fund would debit Expenditures and the debt service fund would credit Other Financing Sources-Transfers In. 
C)  The funds would be transferred to the General Fund and expended for any purpose desired by the management of the government. 
D)  The funds would be returned to the bondholders.

Question 7

Interest revenues should be accrued at year-end on investments held by a permanent fund.

Accepted Answer

A) True 
 B)False

Question 8

How should the acquisition of general fixed assets acquired by capital leases be accounted for?

Accepted Answer

General fixed assets acquired by capital

Question 9

Which of the following is not correct regarding Government Trust Accounting?

Accepted Answer

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 
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

Question 10

Which of the following projects would normally be accounted for in a capital projects fund?

Accepted Answer

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. 
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.

Question 11

What is the difference between Permanent Funds and Private Purpose Trust Funds?

Accepted Answer

Permanent Funds and Private Purpose Trus

Question 12

How would the government account for the unused bond proceeds?

Accepted Answer

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. 
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.

Question 13

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.

Accepted Answer

A)  Capital projects. 
B)  Special Revenue. 
C)  General Fund. 
D)  Permanent. 
A)  Capital projects. 
B)  Special Revenue. 
C)  General Fund. 
D)  Permanent.

Question 14

An encumbrance in a capital project fund is created when the contract for the work is signed or issued.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true with respect to long-term debt?

Accepted Answer

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. 
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.

Question 16

A special assessment tax is

Accepted Answer

A)  Assessed against all property owners following a referendum in which voters approved the special project being constructed. 
B)  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. 
C)  A waiver of property taxes for businesses willing to locate within a government's jurisdiction. 
D)  None of the above 
A)  Assessed against all property owners following a referendum in which voters approved the special project being constructed. 
B)  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. 
C)  A waiver of property taxes for businesses willing to locate within a government's jurisdiction. 
D)  None of the above

Question 17

Capital project funds exist for the duration of the project for which it is created and are then closed.

Accepted Answer

A) True 
 B)False

Question 18

If taxes and/or special assessments are levied specifically for payment of interest and principal on long-term debt,those taxes are recognized as revenues of the debt service fund.

Accepted Answer

A) True 
 B)False

Question 19

When taxes and/or special assessments are levied specifically for payment of interest and principal on long-term debt,those taxes are recognized:

Accepted Answer

A)  As revenues in the General Fund with transfers made to the debt service funds for payments. 
B)  As Other Financing Sources in the debt service fund. 
C)  As revenues in the capital projects fund with transfers made to the debt service funds for payments. 
D)  As revenues in the debt service fund. 
A)  As revenues in the General Fund with transfers made to the debt service funds for payments. 
B)  As Other Financing Sources in the debt service fund. 
C)  As revenues in the capital projects fund with transfers made to the debt service funds for payments. 
D)  As revenues in the debt service fund.

Question 20

When bonds are sold to construct a capital asset through a capital projects fund,an entry would be made to debit Cash and credit Bonds Payable in the capital projects fund.

Accepted Answer

A) True 
 B)False

Budgets are typically recorded for Capital Projects Funds.

With respect to Permanent Funds,which of the following is not true?

Which of the following is a common source of funding for capital projects?

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?

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

When a capital project has been constructed entirely with bond proceeds and funds are left over at the end of the project,which of the following would normally take place?

Interest revenues should be accrued at year-end on investments held by a permanent fund.

How should the acquisition of general fixed assets acquired by capital leases be accounted for?

Which of the following is not correct regarding Government Trust Accounting?

Which of the following projects would normally be accounted for in a capital projects fund?

What is the difference between Permanent Funds and Private Purpose Trust Funds?

How would the government account for the unused bond proceeds?

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.

An encumbrance in a capital project fund is created when the contract for the work is signed or issued.

Which of the following is true with respect to long-term debt?

A special assessment tax is

Capital project funds exist for the duration of the project for which it is created and are then closed.

If taxes and/or special assessments are levied specifically for payment of interest and principal on long-term debt,those taxes are recognized as revenues of the debt service fund.

When taxes and/or special assessments are levied specifically for payment of interest and principal on long-term debt,those taxes are recognized:

When bonds are sold to construct a capital asset through a capital projects fund,an entry would be made to debit Cash and credit Bonds Payable in the capital projects fund.

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 Funds, Inter-fund Transactions

Government-Wide Statements: Capital Assets; Long-Term Debt

Accounting for Special-Purpose Entities Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

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

Budgets are typically recorded for Capital Projects Funds.

With respect to Permanent Funds,which of the following is not true?

Which of the following is a common source of funding for capital projects?

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?

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

When a capital project has been constructed entirely with bond proceeds and funds are left over at the end of the project,which of the following would normally take place?

Interest revenues should be accrued at year-end on investments held by a permanent fund.

How should the acquisition of general fixed assets acquired by capital leases be accounted for?

Which of the following is not correct regarding Government Trust Accounting?

Which of the following projects would normally be accounted for in a capital projects fund?

What is the difference between Permanent Funds and Private Purpose Trust Funds?

How would the government account for the unused bond proceeds?

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.

An encumbrance in a capital project fund is created when the contract for the work is signed or issued.

Which of the following is true with respect to long-term debt?

A special assessment tax is

Capital project funds exist for the duration of the project for which it is created and are then closed.

If taxes and/or special assessments are levied specifically for payment of interest and principal on long-term debt,those taxes are recognized as revenues of the debt service fund.

When taxes and/or special assessments are levied specifically for payment of interest and principal on long-term debt,those taxes are recognized:

When bonds are sold to construct a capital asset through a capital projects fund,an entry would be made to debit Cash and credit Bonds Payable in the capital projects fund.

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 Funds, Inter-fund Transactions

Government-Wide Statements: Capital Assets; Long-Term Debt

Accounting for Special-Purpose Entities Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters