1. A down payment made at the inception of a capital lease by a government fund department decreases the fund balance of the government fund. True or False?

2. A city department accounted for in the city's general fund entered into a capital lease to purchase equipment on May 31st, 2021. The capitalizable cost of the leased equipment was $700,000. The first of 10 annual lease payments of $75,000 each was due and paid on June 1st 2022. The capital lease has an implicit interest rate of 10%. As a result of recording the capital lease transaction, the fund balance of the general fund will decrease by $5,000 on May 31st 2021. TRUE or FALSE?

3.

Which of the following would be included in the amount of property tax revenues recognized and reported for the current year by a Government Fund?

	a.	Property taxes collected during the 2nd month of the current year that were levied during the 1st month of the current year to pay for future year expenditures
	b.	Property Tax discounts granted to property owners that paid property taxes before the due date on a property tax levied this year to be used to pay for current year expenditures
	c.	Property taxes collected on behalf of another government entity
	d.	Delinquent property taxes collected during the 3rd month of the current year that were levied during the previous year to pay for previous year expenditures

4.

For the year ending 12/31/21 a city had increases in the fund balance of its General Fund from the following sources:

Interfund reimbursement from an Internal Service Fund $7 thousand

Proceeds from the issuance of general government long-term debt $4.2 million

Proceeds from two unrestricted federal grants $900 thousand

Interfund transfers $6.5 million

Proceeds from the sale of general government capital assets $80 thousand

Assuming revenue recognition criteria have been met for all revenue sources, please indicate the amount the city will report as General Fund revenues for the year?