Question 1

How would the $3,990,000 be accounted for?

Accepted Answer

A)  As a capital asset in the government-wide Statement of Net Assets 
B)  As an expenditure in the capital projects fund 
C)  Both (a) and (b) 
D)  As an expenditure in the capital projects fund and as an expense in the government-wide Statement of Activities 
A)  As a capital asset in the government-wide Statement of Net Assets 
B)  As an expenditure in the capital projects fund 
C)  Both (a) and (b) 
D)  As an expenditure in the capital projects fund and as an expense in the government-wide Statement of Activities

Question 2

Which of the following statements about Special Assessments is correct:

Accepted Answer

A)  They're accounted for only in the General Fund or a special revenue fund 
B)  They can only raise taxes for funding the projects 
C)  Construction type special assessment projects can only account for short term projects to be considered special assessment 
D)  Accounting for construction type special assessments depends on the existence of any contingent liability on the part of the government 
A)  They're accounted for only in the General Fund or a special revenue fund 
B)  They can only raise taxes for funding the projects 
C)  Construction type special assessment projects can only account for short term projects to be considered special assessment 
D)  Accounting for construction type special assessments depends on the existence of any contingent liability on the part of the government

Question 3

How would the $3,000,000 bond sale be recorded?

Accepted Answer

A)  As a liability in the debt service fund 
B)  As a liability in the capital projects fund 
C)  As an other financing source in the capital projects fund 
D)  As an other financing use in the debt service fund 
A)  As a liability in the debt service fund 
B)  As a liability in the capital projects fund 
C)  As an other financing source in the capital projects fund 
D)  As an other financing use in the debt service fund

Question 4

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

Accepted Answer

A)  The construction of a parking lot for use by employees of the City Water Utility 
B)  The construction of a police station addition 
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 parking lot for use by employees of the City Water Utility 
B)  The construction of a police station addition 
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 5

Proceeds of debt issues should be recognized by a Capital Projects fund at the time the debt is authorized.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true regarding accounting for investments of permanent funds?

Accepted Answer

A)  Investments with determinable fair values must be reported at fair value 
B)  Gains and losses on investments would not be reported in the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances until realized by sale 
C)  Both of the above are true 
D)  Neither of the above is true 
A)  Investments with determinable fair values must be reported at fair value 
B)  Gains and losses on investments would not be reported in the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances until realized by sale 
C)  Both of the above are true 
D)  Neither of the above is true

Question 7

Which of the following serial bonds has the first installment delayed for a period of more than 1 year after the date of the issue?

Accepted Answer

A)  Annuity Serial Bonds 
B)  Regular Serial Bonds 
C)  Irregular Serial Bonds 
D)  Deferred Serial Bonds 
A)  Annuity Serial Bonds 
B)  Regular Serial Bonds 
C)  Irregular Serial Bonds 
D)  Deferred Serial Bonds

Question 8

An annuity serial bond is one where the amount of the principal increases each year by the same amount that the interest payments decrease.

Accepted Answer

A) True 
 B)False

Question 9

When using debt service accounting, long term interest 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 10

Private-purpose Trust Funds benefit individuals, private organizations or other governments.

Accepted Answer

A) True 
 B)False

Question 11

Debt service funds should use the same measurement focus and basis of accounting as:

Accepted Answer

A)  Special revenue funds 
B)  Internal service funds 
C)  Both (a) and (b) 
D)  None of the above 
A)  Special revenue funds 
B)  Internal service funds 
C)  Both (a) and (b) 
D)  None of the above

Question 12

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

Accepted Answer

A)  A gift of $500,000 to a city, to be invested permanently, with the proceeds to be used to maintain the city cemetery 
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 one half of the proceeds added to principle each year and the remainder to be used for low income housing 
D)  A gift of $500,000 to a city to be used for a new caretaker's residence at the local cemetery 
A)  A gift of $500,000 to a city, to be invested permanently, with the proceeds to be used to maintain the city cemetery 
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 one half of the proceeds added to principle each year and the remainder to be used for low income housing 
D)  A gift of $500,000 to a city to be used for a new caretaker's residence at the local cemetery

Question 13

A _________ exists when new debt is issued and the proceeds are used to call the existing debt.

Accepted Answer

A)  Current refunding 
B)  Advance refunding 
C)  Defeasment 
D)  Current exchange 
A)  Current refunding 
B)  Advance refunding 
C)  Defeasment 
D)  Current exchange

Question 14

What is a bond refunding and why do governments refund bonds?
What is the difference between a current refunding and advance refunding?

Accepted Answer

A Bond refunding is issuing new debt to

Question 15

Budgets are typically recorded for Special Revenue Funds.

Accepted Answer

A) True 
 B)False

Question 16

Funds whose earnings benefit individuals, private organizations or other governments are reported in permanent funds.

Accepted Answer

A) True 
 B)False

Question 17

The City of Buffalo River had the following transactions related to the construction of a new courthouse.
(a). 1/2/09: 20 year 6% General Obligation Serial Bonds with a face value of $5,000,000 are issued at 101. Interest payments are made on Jan. 1 and July 1 of each year. The premium was transferred into the Debt Service Fund. The general fund will fully fund each payment as they become due
(b). 3/1/09: Land is purchased for a new courthouse at a cost of $ 250,000
(c). 3/1/09: A contract is signed for construction of the new courthouse in the amount of $ 4,200,000
(d). 6/15/09: $275,000 is transferred from the general fund for the 7/1 payment due on the courthouse fund serial bonds
(e). 7/1/09: Interest ($150,000) and principal ($125,000) are paid on the courthouse fund serial bonds
(f). 12/1/09: Receive an invoice for progress completed to date on the courthouse construction project in the amount of $900,000
(g). 12/27/09: $146,250 is transferred from the general fund for the 1/1/10 interest payment due on the courthouse fund serial bonds. Interest is accrued as of 12/31/09, following the exception permitted by GASB
Required: Prepare a Statement of Revenues, Expenditures and Changes in Fund Balance for the Capital Projects and Debt Service Funds. Assume this is the first year for each fund (beginning fund balances are zero) and the City has no other long-term debt than that described above. Use separate columns for the two funds

Accepted Answer

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@#LAT-DLM&@#LAT-DLM&@#LAT-DLM&@#LAT-DLM&@#LAT-DLM&@#LAT-DLM&@#LAT-DLM&@#LAT-DLM&@#LAT-DLM&@#LAT-DLM&CAPITAL PROJECTS A

Question 18

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

Question 19

A non-expendable trust which benefits a government or its citizenry and which stipulates that earnings only (not principal) may be used for its prescribed purpose would be reported in a Special Revenue Fund.

Accepted Answer

A) True 
 B)False

Question 20

Cash provided by the General Fund for a capital project would be recorded in a capital projects fund as a (an):

Accepted Answer

A)  Revenue 
B)  Other Financing Source 
C)  Direct addition to Fund Balance 
D)  Other Financing Use 
A)  Revenue 
B)  Other Financing Source 
C)  Direct addition to Fund Balance 
D)  Other Financing Use

How would the $3,990,000 be accounted for?

Which of the following statements about Special Assessments is correct:

How would the $3,000,000 bond sale be recorded?

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

Proceeds of debt issues should be recognized by a Capital Projects fund at the time the debt is authorized.

Which of the following is true regarding accounting for investments of permanent funds?

Which of the following serial bonds has the first installment delayed for a period of more than 1 year after the date of the issue?

An annuity serial bond is one where the amount of the principal increases each year by the same amount that the interest payments decrease.

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

Private-purpose Trust Funds benefit individuals, private organizations or other governments.

Debt service funds should use the same measurement focus and basis of accounting as:

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

A _________ exists when new debt is issued and the proceeds are used to call the existing debt.

What is a bond refunding and why do governments refund bonds? What is the difference between a current refunding and advance refunding?

Budgets are typically recorded for Special Revenue Funds.

Funds whose earnings benefit individuals, private organizations or other governments are reported in permanent funds.

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.

A non-expendable trust which benefits a government or its citizenry and which stipulates that earnings only (not principal) may be used for its prescribed purpose would be reported in a Special Revenue Fund.

Cash provided by the General Fund for a capital project would be recorded in a capital projects fund as a (an):

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 Trust Funds

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

Filters

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

How would the $3,990,000 be accounted for?

Which of the following statements about Special Assessments is correct:

How would the $3,000,000 bond sale be recorded?

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

Proceeds of debt issues should be recognized by a Capital Projects fund at the time the debt is authorized.

Which of the following is true regarding accounting for investments of permanent funds?

Which of the following serial bonds has the first installment delayed for a period of more than 1 year after the date of the issue?

An annuity serial bond is one where the amount of the principal increases each year by the same amount that the interest payments decrease.

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

Private-purpose Trust Funds benefit individuals, private organizations or other governments.

Debt service funds should use the same measurement focus and basis of accounting as:

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

A _________ exists when new debt is issued and the proceeds are used to call the existing debt.

What is a bond refunding and why do governments refund bonds? What is the difference between a current refunding and advance refunding?

Budgets are typically recorded for Special Revenue Funds.

Funds whose earnings benefit individuals, private organizations or other governments are reported in permanent funds.

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.

A non-expendable trust which benefits a government or its citizenry and which stipulates that earnings only (not principal) may be used for its prescribed purpose would be reported in a Special Revenue Fund.

Cash provided by the General Fund for a capital project would be recorded in a capital projects fund as a (an):

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 Trust Funds

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

Filters