Question

11. Which of the following funds has an indefinite life?

A)    General Fund

B)    Special revenue

C)    Capital projects

D)    Debt Service

13.   With respect to financial reporting for governmental funds, which of the following statements is true?

A)    A fund must be reported as a major fund if total assets, liabilities, revenues or expenses of the fund are at least 5% of the corresponding total for all governmental and enterprise funds combined.

B)    GASB Statement 34 requires a balance sheet and statement of Revenues, Expenditures and Changes in Fund Balance for the General Fund and other governmental funds.

C)    The General Fund must satisfy the criteria for a major fund to be categorized as such on the balance sheet.

D)    A fund must be reported as a major fund if total assets, liabilities, revenues or expenses of the fund are at least 15% of the corresponding total for all governmental funds

15.   In which fund type is interest on Long Term Debt typically not accrued, yet recognized as an expenditure in the year in which interest is legally due?

            A) Debt service fund.

            B)   Internal Service Fund.

            C)   Enterprise Fund.

            D) Pension Fund.

Answer 1

11. Answer: A) General Fund

Explanation: The rest three funds are created for specific projects as their name suggests but General fund will be in existence till the existence of the entity.

13. Answer: B) GASB Statement 34 requires a balance sheet and statement of Revenues, Expenditures and Changes in Fund Balance for the General Fund and other governmental funds.

Explanation: This is the requirement per GASB 34 statement

15. Answer: A) Debt service fund.

Explanations: Long-term debt are accounted in this fund only and not in rest 3 options given in question.