Multiple choice Questions 1 A 110 000 payment is made on

Multiple choice Questions1. A $110,000 payment is made on a long-term liability. Of this

amount, $10,000 represents interest. Which of the following is not true? a. Reduce liabilities by
$100,000 in the government-wide financial statements.b. Record a $110,000 expenditure in the
fund-based financial statements.c. Reduce liabilities by $100,000 in the fund-based financial
statements.d. Recognize $10,000 interest expense in the government-wide financial
statements.2. A city constructs a special assessment project (a sidewalk) for which it is
secondarily liable. The city issues bonds of $90,000. It authorizes another $10,000 that is
transferred out of the General Fund. The sidewalk is built for $100,000. The citizens are billed
for $90,000. They pay this amount and the debt is paid off. Where is the $100,000 expenditure
for construction recorded?a. It is not recorded by the city.b. It is recorded in the Agency Fund.c.
It is recorded in the General Fund.d. It is recorded in the Capital Projects Fund.3. A city
constructs curbing in a new neighborhood and finances it as a special assessment. Under what
condition should this activity be recorded in the Agency Fund?a. Never; the work is reported in
the Capital Projects Funds.b. Only if the city is secondarily liable for any debt incurred to finance
construction costs.c. Only if the city is in no way liable for the costs of the construction.d. In all
cases.4. Which of the following is an example of an interactivity transaction?a. Money is
transferred from the General Fund to the Debt Service Fund.b. Money is transferred from the
Capital Projects Fund to the General Fund.c. Money is transferred from the Special Revenue
Fund to the Debt Service Fund.d. Money is transferred from the General Fund to the Enterprise
Fund.5. Cash of $60,000 is transferred from the General Fund to the Debt Service Fund. What
is reported on the government-wide financial statements?a. No reporting is made.b. Other
Financing Sources increase by $60,000; Other Financing Uses increase by $60,000.c.
Revenues increase by $60,000; Expenditures increase by $60,000.d. Revenues increase by
$60,000; Expenses increase by $60,000.6. Cash of $60,000 is transferred from the General
Fund to the Debt Service Fund. What is reported on the fund-based financial statements?a. No
reporting is made.b. Other Financing Sources increase by $60,000; Other Financing Uses
increase by $60,000.c. Revenues increase by $60,000; Expenditures increase by $60,000.d.
Revenues increase by $60,000; Expenses increase by $60,000.7. Cash of $20,000 is
transferred from the General Fund to the Enterprise Fund to pay for work that was done. What
is reported on the government-wide financial statements?a. No reporting is made.b. Other
Financing Sources increase by $20,000; Other Financing Uses increase by $20,000.c.
Revenues increase by $20,000; Expenditures increase by $20,000.d. Revenues increase by
$20,000; Expenses increase by $20,000.8. Cash of $20,000 is transferred from the General
Fund to the Enterprise Fund to pay for work that was done. What is reported on the fund-based
financial statements?a. No reporting is made.b. Other Financing Sources increase by $20,000;
Other Financing Uses increase by $20,000.c. Revenues increase by $20,000; Expenditures
increase by $20,000.d. Revenues increase by $20,000; Expenses increase by $20,000.View
Solution: Multiple choice Questions 1 A 110 000 payment is made on
SOLUTION-- http://solutiondone.online/downloads/multiple-choice-
questions-1-a-110-000-payment-is-made-on/

Unlock answers here solutiondone.online