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 1FALSETRUE1. Capital outlays are never made from the General Fund.
Answer 2FALSETRUE2. 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 3FALSETRUE3. Special Revenue Funds cannot be used if a portion of the revenues are derived from transfers from the General Fund.
Answer 4FALSETRUE4. 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 5FALSETRUE5. 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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