If taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are
Included as a liability of the general fund
Recorded as operating transfers to the debt service fund
Included as revenues of the debt service fund
Both A and B are correct

Which of the following would be accounted for as a permanent fund?
A gift of $500,000 to a city, to be invested permanently, with the proceeds to be used to maintain the city cemetery
A gift of $500,000 to a city, to be invested permanently, with the proceeds to be distributed as scholarships
A gift of $500,000 to a city, to be invested permanently, with one half of the proceeds added to principle each year and the remainder to be used for low income housing
A gift of $500,000 to a city to be used for a new caretaker’s residence at the local cemetery

Which of the following projects would normally be accounted for in a capital projects fund?
The construction of a parking lot for use by employees of the City Water Utility
The construction of a police station addition
Payment of interest on bonds issued to finance the construction of a new city hall
Both A and B would be accounted for in a capital projects fund

What is a Special Revenue Fund?
Fund created to account for all resources and revenues to be used for the construction or acquisition of capital assets
Fund used to account for all revenue transactions of a governmental unit that are not accounted for in another fund
Fund used to account for revenues from general taxes or other revenue sources that by law are designated to finance general activities of the government
Fund used to account for revenues from specific taxes or other revenue sources that by law are designated to finance particular activities of the government other than capital projects

Short-term loans which are backed by the taxing power of the governmental unit and used to meet working capital requirements are called:
Tax anticipation notes
Inter-fund loans
Other financing sources
Appropriation loan

How would the government account for the unused bond proceeds?
As a revenue in the debt service fund and as an expenditure in the capital projects fund
As an other financing source in the capital projects fund and as an other financing use in the debt service fund
As an other financing source in the government-wide Statement of Activities
As an other financing source in the debt service fund and as an other financing use in the capital projects fund

Expenditures are generally recorded and fund liabilities are recognized
When goods and services are received, but only if resources are available in the fund
When goods and services are received, regardless of whether or not resources are available in the fund
When purchase orders are issued, regardless of whether or not resources are available in the fund
When invoices are paid

Siler City receives a trust donation for the purpose of maintaining flower beds in city parks, but the donor does not specify that the principal must be maintained. This type of trust would be most appropriately accounted for in a:

Permanent Fund
Special Revenue Fund
Private Purpose Trust Fund
General Fund

When a purchase order is issued under a Capital Projects fund, how should the transaction be recorded?
Debit Encumbrances Control and credit Vouchers payable
Debit Encumbrances Control and credit Reserve for encumbrances
Debit Expenditures and credit Vouchers payable
Debit Expenditures and credit Reserve for encumbrances

In which fund type is interest on Long Term Debt typically not accrued, yet is recognized as an expenditure in the year in which interest is legally due?
Debt service fund
Internal Service Fund
Enterprise Fund
Pension Fund