ACC 501 CH. 6&7 QUIZ (LATEST UPDATE) REAL QUESTIONS
AND VERIFIED ANSWERS |100% CORRECT | ALREADY
GRADED A
Which of the following would not be considered a general long-term
liability?
a. The estimated liability to clean up the hazardous waste storage sites of
the city's Public Works Department
b. Capitalized equipment leases of the water utility fund
c. Compensated absences for the city's Police Department
d. Five-year notes payable used to acquire computer equipment for the
city's administrative offices. Ans✓✓✓b. Capitalized equipment leases of
the water utility fund
Proceeds from bonds issued to construct a new city hall would most
likely be recorded in the journal of:
a. Capital projects fund
b. Debt Service fund
c. General fund
d. Enterprise fund Ans✓✓✓a. Capital projects fund
The liability for long-term debt issued to finance a capital project will
appear in which financial statement?
a. Government wide statement of net position
b. Capital projects fund balance sheet
c. Debt service fund balance sheet
, d. General fund balance sheet Ans✓✓✓a. Government wide statement
of net position
Which one of the following statements regarding debt margin is correct?
a. Debt margin is the total amount of indebtedness of specified types of
debt that is allowed by law to be outstanding at any one time
b. Debt margin is calculated without regard to debt that is authorized but
not issued yet
c. Debt margin is the difference between the legal debt limit and the
amount of net indebtedness subject to limitation
d. All of the above statements regarding debt margin are correct
Ans✓✓✓c. Debt margin is the difference between the legal debt limit
and the amount of net indebtedness subject to limitation
Budgeting entries for a debt service fund would:
a. Not include an entry for estimated revenues because taxes are always
recorded directly into the General Fund
b. Include an estimated adjustment to bonds payable equal to the amount
of principal payments that will become legally due during the fiscal year
c. Include estimated other financing uses equal to the amount of interest
payments that will become legally due during the fiscal year.
d. Include appropriations for principal payments that will become legally
due during the fiscal year Ans✓✓✓d. Include appropriations for
principal payments that will become legally due during the fiscal year
AND VERIFIED ANSWERS |100% CORRECT | ALREADY
GRADED A
Which of the following would not be considered a general long-term
liability?
a. The estimated liability to clean up the hazardous waste storage sites of
the city's Public Works Department
b. Capitalized equipment leases of the water utility fund
c. Compensated absences for the city's Police Department
d. Five-year notes payable used to acquire computer equipment for the
city's administrative offices. Ans✓✓✓b. Capitalized equipment leases of
the water utility fund
Proceeds from bonds issued to construct a new city hall would most
likely be recorded in the journal of:
a. Capital projects fund
b. Debt Service fund
c. General fund
d. Enterprise fund Ans✓✓✓a. Capital projects fund
The liability for long-term debt issued to finance a capital project will
appear in which financial statement?
a. Government wide statement of net position
b. Capital projects fund balance sheet
c. Debt service fund balance sheet
, d. General fund balance sheet Ans✓✓✓a. Government wide statement
of net position
Which one of the following statements regarding debt margin is correct?
a. Debt margin is the total amount of indebtedness of specified types of
debt that is allowed by law to be outstanding at any one time
b. Debt margin is calculated without regard to debt that is authorized but
not issued yet
c. Debt margin is the difference between the legal debt limit and the
amount of net indebtedness subject to limitation
d. All of the above statements regarding debt margin are correct
Ans✓✓✓c. Debt margin is the difference between the legal debt limit
and the amount of net indebtedness subject to limitation
Budgeting entries for a debt service fund would:
a. Not include an entry for estimated revenues because taxes are always
recorded directly into the General Fund
b. Include an estimated adjustment to bonds payable equal to the amount
of principal payments that will become legally due during the fiscal year
c. Include estimated other financing uses equal to the amount of interest
payments that will become legally due during the fiscal year.
d. Include appropriations for principal payments that will become legally
due during the fiscal year Ans✓✓✓d. Include appropriations for
principal payments that will become legally due during the fiscal year
