1. True or false: Governments must always use the consumption method of accounting for supplies.
2. The city has a debt service fund. In Year 10, that fund makes a payment of $400,000 in principal on an outstanding bond. The appropriate journal entry, using modified accrual, in the fund accounts would be:
   1. Debit bonds payable, credit cash
   2. Debit Expenditure for bond principal repayment, credit cash
   3. Debit cash, credit bonds payable
   4. Debit cash, credit expenditure for bond principal repayment
3. The city issues $20 million of long-term bonds for cash. It debits cash. What should be the credit side of the entry in the government-wide statements and the fund statements:
   1. Bonds payable in both
   2. Bonds payable in government-wide, other financing sources in the fund statements
   3. Bonds payable in government-wide, Revenues in the fund statements
   4. Other financing sources in both