F8 - Governmental Funds

Question 1

Receipts from a special tax levy to retire and pay interest on general obligation bonds should be recorded in which fund?

Answer 1

Debt service.

Question 2

Capital assets donated to a governmental unit should be recorded:

Answer 2

At estimated fair value when received

Question 3

The debt service fund services:

Answer 3

General Debt

Both Fiduciary funds and proprietary funds record their own long-term liabilities and service their own debt.

Question 4

Journal entries to report fixed assets in government-wide financials:

Answer 4

Manner Acquired: Amount Recorded:
Purchase Cost to buy
Construction Cost to construct
Capital Lease P.V. lease payments
Donated FMV
Forfeiture Lower of cost or market

Question 5

Interest expenditures should be recorded when:

Answer 5

Legally payable per bond agreement. Interest expenditures should not be accrued between payment dates.