B5-M3 Govt Funds Part 1 (GRaS)

Question 1

When does a General Fund record interest on Bonds issued?

Answer 1

Interest expenditures should be recorded when legally payable per the bond agreement. Interest expenditures should not be accrued between payment dates.

See: Modified Accrual Method

Question 2

What are special items in the Statement of Revenue , expenditures and changes in fund balances

Answer 2

Special items are excluded from the computation of “excess (deficiency) of revenues over expenditures” on a governmental fund statement of revenues, expenditures, and changes in fund balance. Special items and other financing sources and uses are displayed after the “excess (deficiency) of revenues over expenditures” on a governmental fund statement of revenues, expenditures, and changes in fund balance.