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NFP - Test 2 - Ch 8 Exam Questions And
Answers |Latest 2025 | Guaranteed Pass.
Which of the following is true with respect to bankruptcy - Answer✔Many major cities have
avoided bankruptcy by being placed under the control of financial control boards by their state
governments.
A government issues $1M in 30-year, 6% coupon bonds at a discount of $27,092. The bonds
were sold to yield 6.2%. At what amount would the bonds be reported (net) in the government-
wide statement of net assets and governmental fund balance sheet immediately upon
issuance? - Answer✔Government Wide: $972,908 (1M - Discount)
Governmental: $0
The government issues the bonds described in question 2. It makes its first semiannual interest
payment of $30,000. How much interest expense/expenditure would it likely have to report in
its government wide and governmental fund statements? - Answer✔Government Wide:
$30,160 ($30K + $160(amortization))
Governmental: $30K
The government makes subsequent payments interest payments. Reported interest
expense/expenditure in its government wide and governmental fund statements will: -
Answer✔Government Wide: Increase
Governmental: Stay the same
1|P a g e
NFP - Test 2 - Ch 8 Exam Questions And
Answers |Latest 2025 | Guaranteed Pass.
Which of the following is true with respect to bankruptcy - Answer✔Many major cities have
avoided bankruptcy by being placed under the control of financial control boards by their state
governments.
A government issues $1M in 30-year, 6% coupon bonds at a discount of $27,092. The bonds
were sold to yield 6.2%. At what amount would the bonds be reported (net) in the government-
wide statement of net assets and governmental fund balance sheet immediately upon
issuance? - Answer✔Government Wide: $972,908 (1M - Discount)
Governmental: $0
The government issues the bonds described in question 2. It makes its first semiannual interest
payment of $30,000. How much interest expense/expenditure would it likely have to report in
its government wide and governmental fund statements? - Answer✔Government Wide:
$30,160 ($30K + $160(amortization))
Governmental: $30K
The government makes subsequent payments interest payments. Reported interest
expense/expenditure in its government wide and governmental fund statements will: -
Answer✔Government Wide: Increase
Governmental: Stay the same
1|P a g e
