161_Quiz_Ch_6_Debt_Sevice

161_Quiz_Ch_6_Debt_Sevice - ACCY 161 Chapter 6 - Accounting...

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ACCY 161 161_Quiz_Ch_6_Debt_Sevice Page 1 of 4 Chapter 6 - Accounting for General Long-Term Liabilities and Debt Service True/False 1. Both general capital assets acquired or constructed from the proceeds of special assessment debt, and the long-term liability are accounted for in the governmental activities accounts. 2. Debt backed by both special assessments and the full faith and credit of a governmental unit should be reported in the CAFR in the business-type activities accounts. 4. Issuance of tax supported debt having a maturity of more than one year from date of issue must be recorded only in the governmental activities accounts. 5. Debt margin is a term used to denote the total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any one time. 6. Debt margin is the difference between the debt limit and the amount of outstanding debt subject to the limitation. 9. Notes to the financial statements of a state or local government should include a schedule, or summary, of annual debt service requirements (principal and interest payments) for the year following the balance sheet date and for all subsequent years until the final maturity of debt outstanding on balance sheet date. 10. Debt service funds exist to accumulate resources to pay tax supported bond issues at maturity. Interest on such bonds is paid from General Fund appropriations, not from debt service fund appropriations. 11.
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161_Quiz_Ch_6_Debt_Sevice - ACCY 161 Chapter 6 - Accounting...

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