31.The current and long-term portions of General Long-term Debt are normally reported in a debt service fund.
32.A special assessment tax is assessed against all tax payers regardless of who benefits.
33.Funds whose earnings benefit individuals, private organizations, or other governments are reported in private-purpose trust funds.
34.An encumbrance in a capital project fund is created when the contract for the work is signed or issued.
35.If a government issues new debt, and places the proceeds in an escrow account pending the maturity date of existing debt, the existing debt is said to be defeased.
36.When a government receives a gift that must be invested permanently and the investment proceeds are used to benefit the government or its citizens, it would be appropriate to account for that gift in a private purpose trust fund.
37.Investments of permanent funds should be reported at fair value, if determinable, and unrealized gains reported along with realized gains as “Investment Income-Net Increase in Fair Value of Investments.”
38.Capital outlay expenditures of capital projects funds will typically result in additions to the general fixed assets reported in the governmental fund Balance Sheet.
39.In a Statement of Revenues, Expenditures, and Changes in Fund Balances,
Transfers In
are reported within Total Revenues.
40.Under governmental accounting principles for capital and operating leases; expenditures are recorded each period for the amount of the annual lease payment for all leases, but the expenditures are classified differently for capital and operating leases.