(Multiple choice)

1. In which fund should the fixed assets of a central purchasing and stores department organized to serve all municipal departments be recorded?

a. Enterprise Fund

b. Internal Service Fund

c. General Fund

d. Capital Projects Fund

e. Debt Service Fund 2. Which fund would a city use if it had a separate fund to hold and then remit to an insurance company the lump sum of hospital-surgical insurance premiums collected as payroll deductions from employees?

a. General Fund

b. Agency Fund

c. Special Revenue Fund

d. Internal Service Fund

e. Private-Purpose Trust Fund 3. Which fund would be used to account for the activities of a municipal employee retirement plan that is financed by equal employer and employee contributions?

a. Agency Fund

b. Internal Service Fund

c. Permanent Fund

d. Pension Trust Fund

e. Private-Purpose Trust Fund 4. A transaction in which a municipal electric utility issues bonds (to be repaid from its own operations) requires accounting recognition in which fund?

a. General Fund

b. Debt Service Fund

c. Capital Projects Fund

d. Enterprise Fund

e. Internal Service Fund 5. Which fund should be used to account for the operations of a public library receiving most of its support from property taxes levied for that purpose?

a. General Fund

b. Special Revenue Fund

c. Enterprise Fund

d. Internal Service Fund

e. None of the above 6. In which fund should the liability for general obligation bonds issued for constructing a new city hall and serviced from tax revenues be recorded?

a. Enterprise Fund

b. General Fund

c. Capital Projects Fund

d. Special Revenue Fund

e. None of the above 7. To provide for the retirement of general obligation bonds, a city invests a portion of its general revenue receipts in marketable securities. In which fund should the city account for this investment activity?

a. Trust Fund

b. Enterprise Fund

c. Capital Projects Fund

d. Special Revenue Fund

e. None of the above 8. Which fund should be used to account for the operations of a municipal swimming pool receiving the majority of its support from charges to users?

a. Special Revenue Fund

b. General Fund

c. Internal Service Fund

d. Enterprise Fund

e. None of the above 9. Acity collects property taxes for the benefit of the local sanitary, park, and school districts (all of which are legally separate governmental units) and periodically remits collections to these units. Which fund is used to account for this activity?
Agency Fund . General Fund Internal Service Fund . Private-Purpose Trust Fund oanNoen7e® Dof the above 10. Bay Creek’s municipal motor pool maintains all city-owned vehicles and charges the various departments for the cost of rendering those services.
In which of the following funds should Bay Creek account for the cost of such maintenance?

a. General Fund

b. Internal Service Fund

c. Special Revenue Fund

d. Enterprise Fund

e. None of the above