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

What amount would be reported as debt service expenditures for 2017?

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

The General Fund is always considered to be a major fund. When are other governmental funds considered major?

Capital assets are not reported in governmental funds.

The portion of a permanent fund which is spendable should be reported as Unassigned Fund Balance.

Which of the following statements regarding serial bonds is false?

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

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

If taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are:

A gift of $1,000,000 to a city, to be invested permanently, with the proceeds to be used to maintain the city war memorials should be accounted for in a special revenue fund.

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

Fund balances of debt service funds are classified among the categories of Restricted and Unrestricted.

Net assets represented by supplies and prepaid expenses are classified in governmental funds as Nonspendable Fund balance.

What is the difference between a current refunding and advance refunding?

All of the governmental funds except permanent funds use the modified accrual basis of accounting.

During the fiscal year ended December 31, 2017, 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, 2017 and paid interest on October 1 and April 1. The first of 10 equal annual principal payments was due on April 1, 2018. -What would be the amount of expenditures recorded by the debt service fund for the fiscal year ended December 31, 2017?

Capital project funds record the proceeds of debt issued as:

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

Capital Projects funds recognize expenses, but not encumbrances.

Governmental funds, other than the General Fund, are considered major if: I. Total Assets, Liabilities, Revenues, or Expenditures of that individual governmental fund are at least 10% of the corresponding total assets, liabilities, and so forth for all governmental funds. II. Total Assets, Liabilities, Revenues, or Expenditures of the individual governmental fund are at least 5% of the corresponding total for all governmental and enterprise funds combined.