Ch18 - Ch18 Student 1 Which of the following funds use the...

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Ch18 Student: ___________________________________________________________________________ 1. Which of the following funds use the accrual basis of accounting? I. enterprise fund II. agency fund III. internal service fund A. I B. II C. III D. I, II, III 2. A special revenue fund should be used in which of the following situations for a state government? A. For sales taxes which are to be distributed to towns, cities, villages, etc. of the state. B. For the proceeds of general obligation bonds which are to be used to construct major long-lived fixed assets. C. For gasoline taxes which are to be used exclusively to repair state roads and bridges. D . For investments donated by a prominent citizen which are to be invested permanently, with income being used to support homeless people. 3. For which of the following funds are the principles and accounting most like those of the general fund? A. debt service fund B. special revenue fund C. internal service fund D. investment trust fund 4. Which of the following items would not be reported on the financial statements of a special revenue fund? A. Fixed assets and depreciation expense. B. Expenditures and revenues. C. Vouchers payable and unreserved fund balance. D. Fund balance reserved for encumbrances and expenditures. 5. A city's museum is supported by a special tax levy and by user charges. The user charges constitute only 10% of the resources needed to support the operations of the museum. In which fund should the city account for its museum? A. An enterprise fund. B. A special revenue fund. C. An expendable trust fund. D. An agency fund.
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6. Ponca City issued general obligation bonds to finance construction of a new city hall. In the city hall capital projects fund, the proceeds of the general obligation bonds should be credited to: A. Revenue-General Obligation Bonds. B. General Obligation Bonds Payable. C. Deferred Revenue-General Obligation Bonds. D. Other Financing Sources-Bond Issue Proceeds. 7. The City of Fargo issued general obligation bonds to finance construction of a new fire station. The bonds were issued at a premium. In the fire station capital projects fund, the premium should be transferred to: A. an agency fund. B. a debt service fund. C. a special revenue fund. D. an expendable trust fund. 8. The costs of a building being constructed by a capital projects fund should be debited, or charged, to which of the following accounts in the capital projects fund? A. Construction in Progress. B. Building. C. Expenditures. D. Other Financing Uses. 9. When a capital projects fund transfers a premium from the issuance of general obligation bonds to another fund, the transfer should be accounted for as which type of interfund transaction or transfer? A. As a quasi-external transaction.
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This note was uploaded on 05/26/2011 for the course ACCT 410 taught by Professor Khalib during the Spring '11 term at Strayer.

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Ch18 - Ch18 Student 1 Which of the following funds use the...

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