Multiple Choice Questions
63.Budgets are typically recorded for which of the following:
A) Capital Projects Funds.
B) Debt Service Funds.
C) Special Revenue Funds.
D) None of the above
64.Encumbrance accounting is only typically used for
A) Permanent Funds.
B) Debt Service Funds.
C) Capital Projects Funds.
D) None of the above.
65.Which of the following funds typically record budgets?
A) General Funds, special revenue funds, capital projects, debt service, and permanent.
B) Only General Funds.
C) General Funds and permanent funds.
D) General Funds and special revenue funds.
66.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?
A) Debit: Budgetary Fund Balance -- Reserve for Encumbrances.
B) Debit: Construction expenditures.
C) Credit: Cash.
D) Debit: Encumbrances.
67.When taxes and/or special assessments are levied specifically for payment of interest and principal on long-term debt, those taxes are recognized:
A) As revenues in the General Fund with transfers made to the debt service funds for payments.
B) As Other Financing Sources in the debt service fund.
C) As revenues in the capital projects fund with transfers made to the debt service funds for payments.
D) As revenues in the debt service fund.
68.Capital project funds
A) Receive all of their money from tax revenues.
B)Exist only for the duration of the project for which they are created.
C) Record debt issuances as revenues.
D) all of the above.
69.Which of the following is a major source of funding for capital projects funds?
A) Gifts from individuals and corporations.
B) Proceeds from issuance of Long-term debt.
C) Grants.
D) All of the above.
70.An encumbrance in a capital project fund is created
A) When the project is paid for in full.
B) When the work on the project begins.
C) When the work on the project is finished.
D) When a contract is signed or issued.
71.Which of the following statements is false?
A)The corpus (principal) from a permanent fund should be classified as Nonspendable.
B)Unexpended intergovernmental grants and taxes dedicated to capital improvements in a capital projects fund are likely to be classified as Assigned Fund Balance
C)The residual classification for funds other than the General Fund is Assigned.
D)If a bond sinking fund is required by creditors or law, the unexpended resources would be classified as Restricted.
72.Which of the following statements is true?
A)Fund balances of debt service funds are classified as Restricted and Unrestricted.
B)The fund balance of permanent funds should be classified as Nonspendable, Spendable and Committed.
C)The principal of permanent funds are classified as Nonspendable Fund Balance.
D)Any governmental fund may have an Unassigned Fund Balance