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

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 is an example of a:

Which of the following should be accounted for in a permanent fund?

Grant proceeds received from the state for a capital project would be recorded in a capital projects fund of a city government as a (an):

Newly constructed buildings are accounted for in a capital projects fund using which method?

When a purchase order is issued under a Capital Projects fund, how should the transaction be recorded?

If bonds issued to fund a capital project are sold at a premium, the additional money received is:

Budgets are typically not recorded for capital projects, debt service and permanent funds.

Capital projects funds are established by a governmental unit to account for all plant and equipment acquired by construction." Do you agree? Why or why not?

Fixed assets are not capitalized in governmental funds.

Under governmental accounting principles for capital and operating leases; expenditures are recorded each period for the amount of the annual lease payment for all leases, but the expenditures are classified differently for capital and operating leases.