What are the 2 proprietary funds?
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Enterprise and internal service
Shreveport issued a total of $50,000,000 of bonds to construct a city hall. Shreveport
also received a $50,000,000 grant from the state to build a new soccer and baseball
complex. The funds received for these two projects would likely be placed in
______________________.
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, Two capital projects funds. One for the city hall and one for the sports
complex
Explanation:
These funds are committed/restricted for use on specific projects. Both
amounts of money would go into capital projects funds because they are
intended to be used for construction projects. They would not share the
same fund, because the funds came from two different sources, for two
different intended uses, with two different sets of contraints imposed on
the funds (the grant language and the bond documents). If the money
came from two sources, but all of it was intended for one construction
project, then the money would go into a single CP fund. A is incorrect
because a debt service fund is used to accumulate money for repayment of
debt, not the proceeds of a debt issuance.
A city issues $50 million of GO bonds to improve streets and bridges. The bond
covenants call for the city to set aside $1 million to make its first principle payment.
The amount of the liability that would be reflected in the debt service fund is _________
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0
Remember, governmental funds are only concerned with the availability of
current resources. The only liabilities reflected in governmental funds are
those that are currently due. The liabilty for bond obligations does NOT
show up in the financial statements of governmental funds. They would
show up if these bonds were revenue bonds for the water department,
because that is accounted for in an Enterprise Fund, which uses full accrual
accounting. The bond liability WOULD show up on the government-wide
financial statements, but not in the governmental funds financial
statements.
GO bonds (General Obligation) are backed by:
Give this one a try later!
Enterprise and internal service
Shreveport issued a total of $50,000,000 of bonds to construct a city hall. Shreveport
also received a $50,000,000 grant from the state to build a new soccer and baseball
complex. The funds received for these two projects would likely be placed in
______________________.
Give this one a try later!
, Two capital projects funds. One for the city hall and one for the sports
complex
Explanation:
These funds are committed/restricted for use on specific projects. Both
amounts of money would go into capital projects funds because they are
intended to be used for construction projects. They would not share the
same fund, because the funds came from two different sources, for two
different intended uses, with two different sets of contraints imposed on
the funds (the grant language and the bond documents). If the money
came from two sources, but all of it was intended for one construction
project, then the money would go into a single CP fund. A is incorrect
because a debt service fund is used to accumulate money for repayment of
debt, not the proceeds of a debt issuance.
A city issues $50 million of GO bonds to improve streets and bridges. The bond
covenants call for the city to set aside $1 million to make its first principle payment.
The amount of the liability that would be reflected in the debt service fund is _________
Give this one a try later!
0
Remember, governmental funds are only concerned with the availability of
current resources. The only liabilities reflected in governmental funds are
those that are currently due. The liabilty for bond obligations does NOT
show up in the financial statements of governmental funds. They would
show up if these bonds were revenue bonds for the water department,
because that is accounted for in an Enterprise Fund, which uses full accrual
accounting. The bond liability WOULD show up on the government-wide
financial statements, but not in the governmental funds financial
statements.
GO bonds (General Obligation) are backed by:
