Question: State whether the following sentences are true or false regarding the nature and uses of governmental funds. Answer 1 FALSETRUE 1 . Capital outlays are
State whether the following sentences are true or false regarding the nature and uses of governmental funds.
Answer FALSETRUE Capital outlays are never made from the General Fund.
Answer FALSETRUE Special Revenue Funds are used if the law restricts one or more specific sources of revenue, rather than general tax revenues, for specific purposes.
Answer FALSETRUE Special Revenue Funds cannot be used if a portion of the revenues are derived from transfers from the General Fund.
Answer FALSETRUE Capital Projects Funds are used to account for and report on all capital assets, whether they are financed from the proceeds of general obligation bonds or from revenue bonds sold by proprietary funds.
Answer FALSETRUE Debt Service Funds are used to accumulate resources for paying debt service in the current year, but not in future years.
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