ACCT 4421 Module 1 Practice UPDATED
ACTUAL Exam Questions and CORRECT
Answers
The city sold bonds, face value $26 million, at par to finance the construction of a new city hall. -
CORRECT ANSWER - Capital Project Fund
The city purchased two new police cars at a total cost of $50,000. - CORRECT
ANSWER - General Fund
The city collected $8,000 in taxes dedicated for the eradication of noxious weeds. - CORRECT
ANSWER - Special Revenue Fund
The city spent $6,000 on pesticides for noxious weeds. - CORRECT ANSWER - General
Fund
The city acquired a new tractor for $80,000. The city paid $20,000 in cash and signed a note that
is due in three years. - CORRECT ANSWER - General Fund
The city collected property taxes levied for the general operations of the city. - CORRECT
ANSWER - General Fund
The city collected property taxes levied on a specific area of the city for the purposes of
providing more frequent snow removal than is enjoyed by the rest of the city. - CORRECT
ANSWER - Special Revenue Fund
The city collected property taxes levied to pay principal and interest on bonds issued several
years in the past to construct a new fire station. - CORRECT ANSWER - Debt Service
Fund
, The city sold bonds to finance the construction of a new city hall. - CORRECT
ANSWER - Capital Project Fund
The city collects water and sewer fees of $4.2 million. - CORRECT ANSWER - Enterprise
Fund
The city paid salaries to county employees, $100,000. - CORRECT ANSWER - General
Fund
The city pays $4 million to a contractor for work on a new bridge. - CORRECT
ANSWER - Capital Project Fund
The city pays its police officers wages of $325,000. - CORRECT ANSWER - General
Fund
The city pays $2.2 million in bond interest on its general obligation debt. - CORRECT
ANSWER - General Fund
The bonds issued to finance expansion of the city-owned electric utility company. - CORRECT
ANSWER - Enterprise Fund
The city collects taxes on behalf of the parish in which it is located. - CORRECT
ANSWER - Custodial Fund
The city receives a contribution of $5 million. The donor stipulates the money is to be invested in
marketable securities and the interest from the securities can be used to maintain a city park. -
CORRECT ANSWER - Permanent Fund
The city incurs expenditures on a general government capital project. - CORRECT
ANSWER - Capital Project Fund
ACTUAL Exam Questions and CORRECT
Answers
The city sold bonds, face value $26 million, at par to finance the construction of a new city hall. -
CORRECT ANSWER - Capital Project Fund
The city purchased two new police cars at a total cost of $50,000. - CORRECT
ANSWER - General Fund
The city collected $8,000 in taxes dedicated for the eradication of noxious weeds. - CORRECT
ANSWER - Special Revenue Fund
The city spent $6,000 on pesticides for noxious weeds. - CORRECT ANSWER - General
Fund
The city acquired a new tractor for $80,000. The city paid $20,000 in cash and signed a note that
is due in three years. - CORRECT ANSWER - General Fund
The city collected property taxes levied for the general operations of the city. - CORRECT
ANSWER - General Fund
The city collected property taxes levied on a specific area of the city for the purposes of
providing more frequent snow removal than is enjoyed by the rest of the city. - CORRECT
ANSWER - Special Revenue Fund
The city collected property taxes levied to pay principal and interest on bonds issued several
years in the past to construct a new fire station. - CORRECT ANSWER - Debt Service
Fund
, The city sold bonds to finance the construction of a new city hall. - CORRECT
ANSWER - Capital Project Fund
The city collects water and sewer fees of $4.2 million. - CORRECT ANSWER - Enterprise
Fund
The city paid salaries to county employees, $100,000. - CORRECT ANSWER - General
Fund
The city pays $4 million to a contractor for work on a new bridge. - CORRECT
ANSWER - Capital Project Fund
The city pays its police officers wages of $325,000. - CORRECT ANSWER - General
Fund
The city pays $2.2 million in bond interest on its general obligation debt. - CORRECT
ANSWER - General Fund
The bonds issued to finance expansion of the city-owned electric utility company. - CORRECT
ANSWER - Enterprise Fund
The city collects taxes on behalf of the parish in which it is located. - CORRECT
ANSWER - Custodial Fund
The city receives a contribution of $5 million. The donor stipulates the money is to be invested in
marketable securities and the interest from the securities can be used to maintain a city park. -
CORRECT ANSWER - Permanent Fund
The city incurs expenditures on a general government capital project. - CORRECT
ANSWER - Capital Project Fund
