True/False Questions
1. Every general purpose government may have more than one General Fund.
2. The General Fund accounts for any resources
not
reported in one of the other funds.
3.In the General Fund, revenues are recognized when earned and available
4.In the General Fund, revenues are recognized when measurable and earned.
5. Special Revenue Funds may be used whenever a government wishes to segregate income for specific purposes.
6. Special revenue funds are used when it is desirable to provide separate reporting of resources that are restricted or committed to expenditure for purposes other than debt service or capital projects.
7.In special revenue funds, revenues are recognized when available and measurable.
8. The purpose of fund accounting is to segregate those financial resources that have constraints or limitations on their use to demonstrate compliance with those limitations.
9. Special revenue funds are used if the resources are required to be used to acquire capital assets or for the payment of interest and principal on long-term debt.
10.Governmental fund financial statements are prepared using the accrual basis of accounting.
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