Question 1

Which of the following is true regarding capital projects funds?

Accepted Answer

A)  Capital projects funds are considered to be governmental funds. 
B)  Capital projects funds use the economic resources measurement focus and accrual basis of accounting. 
C)  Encumbrance accounting is not used. 
D)  Fixed assets are depreciated in capital projects funds. 
A)  Capital projects funds are considered to be governmental funds. 
B)  Capital projects funds use the economic resources measurement focus and accrual basis of accounting. 
C)  Encumbrance accounting is not used. 
D)  Fixed assets are depreciated in capital projects funds.

Question 2

Use the following to answer the next six questions:
During the fiscal year ended December 31, 2015, the City of Johnstown issued 6% general obligation serial bonds in the amount of $2,000,000 at 102 ($2,040,000) and used $1,980,000 of the proceeds to construct a fire station. The $40,000 premium was transferred to a debt service fund. The $20,000 left in the capital projects fund at the end of the project was later transferred to the debt service fund. The bonds were dated April 1, 2015 and paid interest on October 1 and April 1. The first of 10 equal annual principal payments was due on April 1, 2016.
-What would be the amount of expenditures recorded by the debt service fund for the fiscal year ended December 31,2016?

Accepted Answer

A)  $440,000. 
B)  $324,000. 
C)  $320,000. 
D)  $120,000. 
A)  $440,000. 
B)  $324,000. 
C)  $320,000. 
D)  $120,000.

Question 3

When using debt service accounting,interest on long term debt is not to be accrued unless the payment is due in no more than one month and the government has resources available for payment.

Accepted Answer

A) True 
 B)False

Question 4

Debt service funds should accrue interest and report principle payments due within the next12 months following year end.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  A gift of $65,000 to a school district, to be invested permanently, with the proceeds to be awarded as college scholarships to graduating seniors. 
B)  A gift of $65,000 to a school district, to be used for landscaping improvements. 
C)  A gift of $65,000 to a city to be invested permanently, with the proceeds to be used to buy books for the city library. 
D)  Both A and C 
A)  A gift of $65,000 to a school district, to be invested permanently, with the proceeds to be awarded as college scholarships to graduating seniors. 
B)  A gift of $65,000 to a school district, to be used for landscaping improvements. 
C)  A gift of $65,000 to a city to be invested permanently, with the proceeds to be used to buy books for the city library. 
D)  Both A and C

Question 6

When a governmental unit is primarily or secondarily liable for the debt,debt proceeds for special assessment obligations levied for the construction phase of a capital improvement project should be reported in which of the following fund types?

Accepted Answer

A)  General. 
B)  Capital projects. 
C)  Agency. 
D)  Debt service. 
A)  General. 
B)  Capital projects. 
C)  Agency. 
D)  Debt service.

Question 7

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

Accepted Answer

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. 
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.

Question 8

The fund balance of permanent funds should be classified as Nonspendable,Spendable and Committed.

Accepted Answer

A) True 
 B)False

Question 9

Capital project funds

Accepted Answer

A)  Receive all of their money from tax revenues. 
B)  Exist only for the duration of the project for which they are created. 
C)  Record debt issuances as revenues. 
D)  all of the above. 
A)  Receive all of their money from tax revenues. 
B)  Exist only for the duration of the project for which they are created. 
C)  Record debt issuances as revenues. 
D)  all of the above.

Which of the following is true regarding capital projects funds?

When using debt service accounting,interest on long term debt is not to be accrued unless the payment is due in no more than one month and the government has resources available for payment.

Debt service funds should accrue interest and report principle payments due within the next12 months following year end.

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

When a governmental unit is primarily or secondarily liable for the debt,debt proceeds for special assessment obligations levied for the construction phase of a capital improvement project should be reported in which of the following fund types?

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

The fund balance of permanent funds should be classified as Nonspendable,Spendable and Committed.

Capital project funds

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

Which of the following is true regarding capital projects funds?

When using debt service accounting,interest on long term debt is not to be accrued unless the payment is due in no more than one month and the government has resources available for payment.

Debt service funds should accrue interest and report principle payments due within the next12 months following year end.

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

When a governmental unit is primarily or secondarily liable for the debt,debt proceeds for special assessment obligations levied for the construction phase of a capital improvement project should be reported in which of the following fund types?

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

The fund balance of permanent funds should be classified as Nonspendable,Spendable and Committed.

Capital project funds

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