test 2 - MC Flashcards
Revenues in a Debt Service Fund are recognized when
a.They are measurable and earned.
b.They are measurable and available.
c.They are collected in cash.
d.Debt service payments are due.
They are measurable and available.
Equity in a Debt Service Fund is known as
a.Revenue minus expenditures
b.Net investment in capital assets.
c.Unrestricted net position.
d.Fund balance
Fund balance
Assume that the fair market value of investments in a Debt Service Fund decreased by $25,000 as of the end of the fiscal year. What entry would be necessary to reflect this change?
a. Debit interest expense and credit investments.
b.No entry is necessary since the investments have not actually been sold.
c.Debit investment income and credit investments.
d.Debit interest expense and credit cash
Debit investment income and credit investments.
Which of the following would NOT be a likely source of financial resources for a Debt Service Fund?
a.Transfers from the General Fund
b.Sales taxes
c.Proceeds from the sale of capital assets
d.Property taxes
Proceeds from the sale of capital assets
If cash from the General Fund is transferred to a Debt Service Fund, the entry in the Debt Service Fund would
a.Debit cash and credit fund balance.
b.Debit cash and credit revenues.
c.Debit cash and credit other financing sources.
d.Debit cash and credit accounts receivable.
Debit cash and credit other financing sources.
Which of the following capital asset-related transactions would most likely be accounted for through a Capital Projects Fund?
a. A major general government capital lease transaction.
b.Purchase of multiple computers for general government departments.
c.Construction of a general government office building.
d.Maintenance of general government fixed assets
Construction of a general government office building.
If a governmental entity issued a six-month, $400,000 note payable at 6% interest three months prior to the fiscal year end to help finance a new fire station, Capital Projects Fund interest payable should be accrued as of the end of the fiscal year in the amount of
a.$ 0
b.$ 6,000
c.$ 8,000
d.$ 24,000
$ 6,000
Which of the following is a distinguishing feature of a budget for a Capital Projects Fund?
a.A budget is not used for projects for which contracts will be issued.
b.The budget is usually for a single year.
c.Since a Capital Projects Fund usually just spends money, there is no reason for revenue or other financing sources to be part of the budget.
d.The budget is usually for the term (life) of the project.
The budget is usually for the term (life) of the project.
An Enterprise Fund made a debt service payment of $75,000 ($45,000 principal, $30,000 interest). The Enterprise Fund will report
a.$30,000 of expense.
b.$0 expense
c.Liability reduction of $75,000.
d.$75,000 of expense.
$30,000 of expense.
A city’s Enterprise Fund issued revenue bonds with a face value of $10,000,000. The bonds were issued with a 2% premium and the issuance costs totaled $150,000. When the bonds are issued, the Enterprise Fund will report total other financing sources in the amount of
a.$10,200,000
b.$9,850,000
c.$ 0
d.$10,000,000.
$ 0
A developer agreed to pay for water and wastewater infrastructure associated with one of his development projects. Once the work is completed and the new lines are connected, they will become part of the city’s Enterprise Fund capital assets. The entry that should be recorded by the Enterprise Fund when the project is complete would be
a.A debit to capital assets and a credit to nonoperating revenues.
b.A debit to capital assets and a credit to transfer in.
c.A debit to capital assets and a credit to capital contribution.
d.A debit to capital assets and a credit to net investment in capital assets
A debit to capital assets and a credit to capital contribution.
Which of the following would NOT have been an example of an Enterprise Fund
a.Belize Telecommunication Authority
b.Belize Electricity Board
c.Water And Sewage Authority
d.Belize Government Printers
Belize Government Printers
A County has a Self-Insurance Internal Service Fund. If the fund purchases $100,000 of investments during the month, the
a.Fund’s total assets will increase by $100,000.
b.Fund’s total assets will decrease by $100,000.
c.Fund’s expenditures will increase by $100,000.
d.Fund’s total assets will remain the same.
Fund’s total assets will remain the same.
Which types of funds are classified as fiduciary funds?
a.Expendable trust, nonexpendable trust, pension trust, and Investment Trust
Funds.
b.Pension trust, private-purpose trust, and Investment Trust Funds.
c.Pension trust, private-purpose trust, investment trust, and Agency
Funds.
d.Pension trust, permanent trust, and Agency Funds.
Pension trust, private-purpose trust, investment trust, and Agency Funds.
A county uses an agency fund to collect property taxes for both itself and on behalf of the three municipalities within its borders. If the county collected $7,000 of taxes during the month on behalf of the other municipalities, what would be reported in the agency fund?
a.Revenues of $ 7,000
b.Revenues of $7,000, offset by expenses of $7,000.
c.An increase in assets of $7,000 and an increase in liabilities of $7,000.
d.An increase in equity in the agency fund of $7,000
An increase in assets of $7,000 and an increase in liabilities of $7,000.
