Select the correct answer for each of the following questions.

1. On December 31, 20XI, Tiffin Township paid a contractor \(\$ 2,000,000\) for the total cost of a new firehouse built in 20XI on township-owned land. Financing was by means of a \(\$ 1,500,000\) general obligation bond issue sold at face amount on December 31, 20X1, with the remaining \(\$ 500,000\) transferred from the general fund. What should be reported on Tiffin's financial statements for the capital projects fund?

a. Revenue, \(\$ 1,500,000\); Expenditures, \(\$ 1,500,000\).

b. Revenue, \(\$ 1,500,000\); Other Financing Sources, \(\$ 500,000\); Expenditures, \(\$ 2.000 .000\).

c. Revenue, \(\$ 2,000,000\); Expenditures \(\$ 2,000,000\).

d. Other Financing Sources, \(\$ 2,000,000\); Expenditures, \(\$ 2,000,000\).
2. A debt service fund of a municipality is an example of which of the following types of funds?

a. Fiduciary.

b. Governmental.

c. Proprietary.

d. Internal service.
3. Revenue of a special revenue fund of a governmental unit should be recognized in the period in which the:

a. Revenue becomes available and measurable.

b. Revenue becomes available for appropriation.

c. Revenue is billable.

d. Cash is received.
4. Taxes collected and held by a municipality for a school district would be accounted for in a(n):

a. Enterprise fund.

b. Intragovernmental (internal) service fund.

c. Agency fund.

d. Special revenue fund.
5. Interest expense on bonds payable should be recorded in a debt service fund:

a. At the end of the fiscal period if the interest due date does not coincide with the end of the fiscal period.

b. When bonds are issued.

c. When legally payable.

d. When paid.
6. Which of the following funds does not have a fund balance?

a. General fund.

b. Agency fund.

c. Special revenue fund.

d. Capital projects fund.