Study for Exam 2 1. Which of the following funds typically record


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please see attached file for questions 6 pages Exam 2 study.docx Study for Exam 2 1. Which of the following funds typically record budgets? 2. What is the correct debit or credit for the following scenario: A contract was issued for the major part of work to be done by a private contractor in the amount of $1,200,000 for a new County court house? 3. When taxes and/or special assessments are levied specifically for payment of interest and principal on longterm debt, those taxes are recognized: 4. Capital project funds have the following characteristics 5. An encumbrance in a capital project fund is created 6. Which of the following statements is false? 7. With respect to Capital Projects Funds, which of the following is correct? 8. If a trust is to be used for the benefit individuals, private organizations or other governments, the following fund(s) should be used: 9. With respect to Permanent Funds, which of the following is not true? 10. When a government acquires general fixed assets under a capital lease agreement, the asset should be recorded in the General Fund’s fund basis financial statements: 11. Which of the following is a common source of funding for capital projects? 12. Which of the following is true with respect to special assessment levies? 13. If the government is primarily or secondarily liable for the payment of debt principal and interest for a special assessment project,: 14. Which of the following statements regarding serial bonds is false? 15. Which of the following projects would normally be accounted for in a capital projects fund? 16. General fixed assets that are acquired with governmental fund resources are reported as assets in the: 17. When a purchase order is issued under a Capital Projects fund, how should the transaction be recorded? 18. Which of the following lease criteria would not qualify a lease as a capital lease? 19. Which of the following lease criteria would not qualify a lease as a capital lease? 20. If taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are: 21. Governmental funds, other than the General Fund, are considered major if: Use the following for questions 22-30 On October 1, 2013, the City of Mizner issued $3,500,000 in 4%, general obligation bonds at 101 for the purpose of constructing an addition to City Hall. The premium was transferred to a debt service fund. A total of $3,475,000 was used to construct the addition, which was completed prior to June 30, 2014. The remaining funds were transferred to the debt service fund. The bonds were dated October 1, 2013, and paid interest on April 1 and October 1. The first of 20 annual principal payments of $175,000 is due October 1, 2014. The fiscal year for Mizner is July 1-June 30. 22. In addition to a $3,500,000 liability in the government-wide Statement of Net Assets (or Net Position), how would the bond sale be reported? 23. In addition to a capital asset in the government-wide Statement of Net Assets (or Net Position), how would the construction costs of $3,475,000 be reported at year-end? 24. In addition to a capital asset in the government-wide Statement of Net Assets (or Net Position), how would the construction costs of $3,475,000 be reported at year-end? 25. How would the government account for the unused bond proceeds? 27. Which of the following statements is true regarding proprietary funds? 28. Centralized purchasing, computer services, and janitorial services are examples of activities that are commonly reported in what type of funds? 30. An example of an activity that would not normally be accounted for in an internal service fund would be: 31. Which financial statements are required for a proprietary fund? 32. Which of the following is correct with respect to Internal Service Funds? 33. The categories of Net Assets (or Net Position) for a proprietary fund are classified within which of the following categories? 34. Restricted Net

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