ACCT 4421 Module 1 Practice Questions and
Answers Verified by Experts
The city purchases stationary from an outside supplier that will be sold to its various operating
departments. Correct Answ_Internal Service Fund
Levy of taxes for the benefit of the city, the county, and the local school district and periodic
remittance of the collections to those units. Correct Answ_Custodial Fund
Sales tax revenues required to be used to finance education. Correct Answ_Special Revenue
Fund
The city-owned water system pays interest on term bonds. Correct Answ_Enterprise Funds
The city pays interest on bonds issued to finance a new library buildings. Correct
Answ_Debt Service Fund
The city is provided funding for en endowment for scholarships for the children of police officers
disabled on duty. Correct Answ_Private Purpose Trust Fund
, The City of Brusly, the Town of Walker, and the Village of Killian pool their idle cash to obtain
higher interest income. Correct Answ_Investment Trust Fund
Pension benefits are paid to State Police Officers. Correct Answ_Pension Trust Fund
The city collected $3,500,000 of the current property tax levy dedicated to the repayment of
bonds. Correct Answ_Debt Service Fund
The city borrowed $35,000 on a three-year note from a local bank to buy a county car.
Correct Answ_General Fund
The city received a $50,000 grant from the State to support Pre-K education. Correct
Answ_Special Revenue Fund
The city collects $1 million of taxes for an independent fire district located within the city.
Correct Answ_Custodial Fund
Answers Verified by Experts
The city purchases stationary from an outside supplier that will be sold to its various operating
departments. Correct Answ_Internal Service Fund
Levy of taxes for the benefit of the city, the county, and the local school district and periodic
remittance of the collections to those units. Correct Answ_Custodial Fund
Sales tax revenues required to be used to finance education. Correct Answ_Special Revenue
Fund
The city-owned water system pays interest on term bonds. Correct Answ_Enterprise Funds
The city pays interest on bonds issued to finance a new library buildings. Correct
Answ_Debt Service Fund
The city is provided funding for en endowment for scholarships for the children of police officers
disabled on duty. Correct Answ_Private Purpose Trust Fund
, The City of Brusly, the Town of Walker, and the Village of Killian pool their idle cash to obtain
higher interest income. Correct Answ_Investment Trust Fund
Pension benefits are paid to State Police Officers. Correct Answ_Pension Trust Fund
The city collected $3,500,000 of the current property tax levy dedicated to the repayment of
bonds. Correct Answ_Debt Service Fund
The city borrowed $35,000 on a three-year note from a local bank to buy a county car.
Correct Answ_General Fund
The city received a $50,000 grant from the State to support Pre-K education. Correct
Answ_Special Revenue Fund
The city collects $1 million of taxes for an independent fire district located within the city.
Correct Answ_Custodial Fund
