Governmental Accounting - Exam 1
questions and answers graded A+
Assume that the City of Zachary maintains its books and records in a manner that facilitates the
preparation of fund financial statements. For each of the following events indicate in which
fund(s) of the city the event would be recorded.
Note: The answer options may be used once, more than once, or not at all.
1. The city sold bonds, face value $26 million, at par to finance the construction of a new city
hall.
2. The city purchased two new police cars at a total cost of $50,000.
3. The city collected $8,000 in taxes dedicated for the eradication of noxious weeds.
4. The city spent $6,000 on pesticides for noxious weeds.
5. 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 ✔✔1. Capital Project Fund
2. General Fund
3. Special Revenue Fund
4. General Fund
5. General Fund
Kayla Township issued the following bonds during the year:
Ten-year bonds to acquire equipment for a data processing service reported in an internal
service fund
$2,000,000
Bonds to construct a new police station
$9,000,000
Bonds to increase the capacity of the water treatment plant reported in an enterprise fund
,$4,800,000
The amount of debt reported in the Township's general fund is: - correct answer ✔✔$0
Kayla Township issued the following bonds during the year:
Ten-year bonds to acquire equipment for a data processing service reported in an internal
service fund
$2,000,000
Bonds to construct a new police station
$9,000,000
Bonds to increase the capacity of the water treatment plant reported in an enterprise fund
$4,800,000
In accordance with bond covenants the township sets aside $1,000,000 to help ensure that it is
able to meet its first payment of principal and interest on the police station debt due one year
from the date the bonds were issued. The amount of liability that the township should report in
its debt service fund is: - correct answer ✔✔$0
Match the following transactions to the fund in which it would be recorded. Please note that
some answer choices may be used once, more than once, or not at all.
1. Parish library operations are financed by a portion of the tax levy restricted for that purpose.
2. Retirement of a proprietary fund's long-term debt affects which fund?
3. The city purchases stationery from an outside supplier that will be sold to its various
operating departments.
4. 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.
5. Sales tax revenues required to be used to finance education. - correct answer ✔✔1. Special
Revenue Fund
, 2. Enterprise Fund
3. Internal Service Fund
4. Custodial Fund
5. Special Revenue Fund
Match the following transactions to the fund in which it would be recorded. Please note that
some answer choices may be used once, more than once, or not at all.
1. Bonds issued to finance expansion of the city-owned electric utility company.
2. The city collects taxes on behalf of the parish in which it is located.
3. The city receives a contribution of $5M. 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.
4. The city incurs expenditures on a general government capital project.
5. The city spends $4M to pave city streets using the proceeds of a gasoline tax dedicated for
road highway improvements. - correct answer ✔✔1. Enterprise Fund
2. Custodial Fund
3. Permanent Fund
4. Capital Project Fund
5. Special Revenue Fund
Assume that the City of Zachary maintains its books and records in a manner that facilitates the
preparation of fund financial statements. For each of the following events indicate in which
fund(s) of the city the event would be recorded.
Note: The answer options may be used once, more than once, or not at all.
1. The city collected $3,500,000 of the current property tax levy dedicated to the repayment of
bonds.
2. The city borrowed $35,000 on a three-year note from a local bank to buy a county car.
questions and answers graded A+
Assume that the City of Zachary maintains its books and records in a manner that facilitates the
preparation of fund financial statements. For each of the following events indicate in which
fund(s) of the city the event would be recorded.
Note: The answer options may be used once, more than once, or not at all.
1. The city sold bonds, face value $26 million, at par to finance the construction of a new city
hall.
2. The city purchased two new police cars at a total cost of $50,000.
3. The city collected $8,000 in taxes dedicated for the eradication of noxious weeds.
4. The city spent $6,000 on pesticides for noxious weeds.
5. 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 ✔✔1. Capital Project Fund
2. General Fund
3. Special Revenue Fund
4. General Fund
5. General Fund
Kayla Township issued the following bonds during the year:
Ten-year bonds to acquire equipment for a data processing service reported in an internal
service fund
$2,000,000
Bonds to construct a new police station
$9,000,000
Bonds to increase the capacity of the water treatment plant reported in an enterprise fund
,$4,800,000
The amount of debt reported in the Township's general fund is: - correct answer ✔✔$0
Kayla Township issued the following bonds during the year:
Ten-year bonds to acquire equipment for a data processing service reported in an internal
service fund
$2,000,000
Bonds to construct a new police station
$9,000,000
Bonds to increase the capacity of the water treatment plant reported in an enterprise fund
$4,800,000
In accordance with bond covenants the township sets aside $1,000,000 to help ensure that it is
able to meet its first payment of principal and interest on the police station debt due one year
from the date the bonds were issued. The amount of liability that the township should report in
its debt service fund is: - correct answer ✔✔$0
Match the following transactions to the fund in which it would be recorded. Please note that
some answer choices may be used once, more than once, or not at all.
1. Parish library operations are financed by a portion of the tax levy restricted for that purpose.
2. Retirement of a proprietary fund's long-term debt affects which fund?
3. The city purchases stationery from an outside supplier that will be sold to its various
operating departments.
4. 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.
5. Sales tax revenues required to be used to finance education. - correct answer ✔✔1. Special
Revenue Fund
, 2. Enterprise Fund
3. Internal Service Fund
4. Custodial Fund
5. Special Revenue Fund
Match the following transactions to the fund in which it would be recorded. Please note that
some answer choices may be used once, more than once, or not at all.
1. Bonds issued to finance expansion of the city-owned electric utility company.
2. The city collects taxes on behalf of the parish in which it is located.
3. The city receives a contribution of $5M. 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.
4. The city incurs expenditures on a general government capital project.
5. The city spends $4M to pave city streets using the proceeds of a gasoline tax dedicated for
road highway improvements. - correct answer ✔✔1. Enterprise Fund
2. Custodial Fund
3. Permanent Fund
4. Capital Project Fund
5. Special Revenue Fund
Assume that the City of Zachary maintains its books and records in a manner that facilitates the
preparation of fund financial statements. For each of the following events indicate in which
fund(s) of the city the event would be recorded.
Note: The answer options may be used once, more than once, or not at all.
1. The city collected $3,500,000 of the current property tax levy dedicated to the repayment of
bonds.
2. The city borrowed $35,000 on a three-year note from a local bank to buy a county car.
