Please see attachment, 10 multiple choice questions

6-16Multiple Choice. Choose the best answer. 1 Which of the following would not be considered a general longterm liability? a The estimated liability to clean up the hazardous waste storage sites of the city's Public Works Department. a Capitalized equipment leases of the water utility fund. a Compensated absences for the city's Police Department. a Fiveyear notes payable used to acquire computer equipment for the city's administrative offices. 1 Proceeds from bonds issued to construct a new city hall would most likely be recorded in the journal of the: a Capital projects fund. a Debt service fund. a General Fund. a Enterprise fund. 1 The liability for longterm debt issued to finance a capital project will appear in which financial statement? a Governmentwide statement of net position. a Capital projects fund balance sheet. a Debt service fund balance sheet. a General fund balance sheet. Page 246 1 1 1 Which one of the following statements regarding debt margin is correct? a Debt margin is the total amount of indebtedness of specified types of debt that is allowed by law to be outstanding at any one time. a Debt margin is calculated without regard to debt that is authorized but not yet issued. a Debt margin is the difference between the legal debt limit and the amount of net indebtedness subject to limitation. a All of the above statements regarding debt margin are correct. Budgeting entries for a debt service fund would: a Not include an entry for estimated revenues since taxes are always recorded directly into the General Fund. a Include an estimated adjustment to bonds payable equal to the amount of principal payments that will become legally due during the fiscal year. a Include estimated other financing uses equal to the amount of interest payments that will become legally due during the fiscal year. a Include appropriations for principal payments that will become legally due during the fiscal year. On March 2, 2017, 20year, 6 percent, general obligation serial bonds were issued by Mossy County at the face amount of $3,000,000. Interest of 6 percent per year is due semiannually on March 1 and September 1. The first principal payment of $150,000 is due on March 1, 2018. The county's fiscal yearend is December 31. What amounts are reported as interest expense in the governmentwide financial statements and interest expenditure in the debt service fund for 2017? Interest Expense Interest Expenditure a . $150,000 $90,000 1 1 b . $90,000 $150,000 c . $150,000 $150,000 d . $150,000 $180,000 Debt service funds may be used to account for all of the following except: a Repayment of debt principal. a Lease payments under capital leases. a Amortization of premiums on bonds payable. a The proceeds of refunding bond issues. Which of the following items would be reported in the Governmental Activities column of the governmentwide financial statements? Premium on Noncurrent Portion of General Bonds Payable Long-term Liabilities Payable 1 a . Yes No b . No No c . No Yes d . Yes Yes The liability for special assessment bonds for which the city is not obligated in any manner should be recorded in a (an): a Debt service fund general journal. a Agency fund general journal. Page 247 a a Governmental activities general journal. None of the fund or governmental activities general journals but should be disclosed in the notes to the financial statements. 1 As a result of planning and setting aside funds to repay debt, substantial sums may be accumulated in accounts at financial institutions and in longterm investments. This subjects the government to which of the following types of risk? a Interest rate risk, custodial credit risk, concentration risk, and reinvestment risk. a Credit risk, concentration risk, interest rate risk, and market risk. a Concentration risk, custodial credit risk, interest rate risk, and liquidity risk. a Custodial credit risk, concentration risk, interest rate risk, and credit risk