True/False Questions
1.Because capital project, debt service and permanent funds use modified accrual accounting, these funds would typically record budgets.
2.Because debt service and permanent funds use modified accrual accounting, these funds would typically record encumbrances.
3.Capital Projects funds recognize expenses, but not encumbrances.
4.Debt service funds should accrue interest and report principle payments due within the next12 months following year end.
5.Unmatured principal installments and accrued interest which is due shortly after year end are required to be reported as liabilities in the debt service fund at year end.
6.All of the governmental funds except permanent funds use the modified accrual basis of accounting
7.A special assessment tax is a tax levy that is assessed against only those taxpayers who are deemed to benefit from the service or project paid for by the proceeds of the special assessment levy.
8.Special assessments may be levied to finance construction projectsor to provide current services.
9.Positive fund balances of capital projects funds are classified as nonspendable, restricted, committed, or assigned.
10.Unexpended resources transferred to the debt service fund from the General Fund would typically be classified as Restricted Fund Balance.
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