1. Revenues in a Debt Service Fund are recognized when a. They are collected in cash. b....
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Question:
- 1. Revenues in a Debt Service Fund are recognized when
- a. They are collected in cash.
- b. They are measurable and available.
- c. They are measurable and earned.
- d. Debt service payments are due.
- 2. Equity in a Debt Service Fund is known as
- a. The restricted net position.
- b. Fund balance.
- c. Net investment in capital assets.
- d. The unrestricted net position.
- 3. What measurement focus does a Debt Service Fund use?
- a. Total financial resources.
- b. Current financial resources
- c. Economic resources
- d. Cash resources
- 4. All of the following statements regarding a Debt Service Fund are true except
- a. A Debt Service Fund is rarely used to account for all of a governmental entity's general obligation bond repayments.
- b. Debt service on capital lease obligations is generally not accounted for in a Debt Service Fund.
- c. A government may have several Debt Service Funds.
- d. A government may use one Debt Service Fund to account for multiple general government debt issuances.
- 5. A government is required to use a Debt Service Fund in which of the following cases?
- a. Capital leases.
- b. When financial resources are being accumulated for long-term general government principal and interest maturing in future years.
- c. Debt refunding.
- d. All general obligation long-term debt.
- 6. Which of the following transactions would not be reported as expenditures in a Debt Service Fund?
- a. Issuance costs incurred in refunding bond issuance.
- b. Payments to escrow agents with resources transferred from the General Fund.
- c. Arbitrage rebate.
- d. Repayment of BANs issued to finance a capital project.
- 7. Which of the following types of transactions would not potentially be reported as expenditures in a Debt Service Fund?
- a. Retirement of long-term debt principal.
- b. Interest in long-term debt.
- c. Discounts on refunding debt.
- d. Bond issuance costs.
- 8. Debt Service Fund expenditures reported on the Statement of Revenues, Expenditures, and Changes in Fund Balance commonly exclude
- a. Fiscal agent fees.
- b. Interest expenditures.
- c. Principal retirement expenditures.
- d. Gains and losses on early retirement of debt.
- 9. Principal and interest expenditures on general long-term debt should be recognized in the period
- a. That the costs are incurred.
- b. Prior to the year in which they are due, i.e., when they become short-term debt.
- c. That they are legally due and payable.
- d. That they are paid.
- 10. Debt service expenditures on general long-term debt principal should be recognized in the period that the liability:
- a. accrues, if paid.
- b. accrues, whether or not paid.
- c. is legally due, if paid.
- d. is legally due, whether or not paid.
Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: ?978-0073379609
15th Edition
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
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