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 prescribed purpose would be reported in a Special Revenue Fund.

Which of the following statements is correct?

Regarding capital projects funds, which of the following is correct?

A major source of funding for Capital Project Funds include the issuance of long term debt.

If a trust is to be used for the benefit individuals, private organizations or other governments, the following funds should be used:

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 should be reported in a:

Regarding Capital Projects Funds, which of the following is incorrect?

The principal of permanent funds is classified as Nonspendable Fund Balance.

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

Since long-term liabilities are not recorded in the governmental funds, payments of debt principal are recorded as expenditures, rather than reductions of outstanding liabilities.

A Debt Service Fund is a fund type that is used to account for revenues and other financing sources that are intended to service debt.

With respect to Debt Service Funds, which of the following is correct?

If a government has debt service due no more than one month after the end of a fiscal year and has the resources available, then it is permitted to accrue expenditures and a fund liability for the debt service.

Unexpended intergovernmental grants and taxes dedicated to capital improvements in a capital projects fund are likely to be classified as Restricted Fund Balance

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

If a sinking fund is required by creditors or law, the unexpended resources would be classified as Restricted Fund Balance.

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?

When a government receives a gift that must be invested permanently and the investment proceeds are used to benefit the government or its citizens, it would be appropriate to account for that gift in a private purpose trust fund.

Expenditures of capital projects funds are reported in the capital outlay character classification in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances.

General Funds and special revenue funds typically record budgets.