1. The enterprise funds provide goods or services to other departments on a cost-reimbursement basis.

True / False

2. Under the accrual basis of accounting, expenditures are generally recognized when incurred because that is when they become measurable.

True / False

3. The capital projects fund is a governmental fund for the acquisition or construction of capital assets.

True / False

4. The debt service fund accounts for the accumulation of resources for, and the payment of, general long-term liability principal and interest.

True / False

5. The permanent fund should be the only fund that shows a positive unassigned fund balance amount.

True / False

11. Which of the following is not true about bond of governmental accounting?

a. AIFA City issued General Obligation Bond(GOB) $50,000 at 110, and additional cash payment occurred as follow : Underwriter fee $500, Debt issue cost $1,000. Then, Underwriter fee $500 is expended, and debt issue cost $1,000 is deducted from GOB. Therefore, AIFA City will report this GOB to OFS category, at $54,000.

b. On 1/2/20X1, New York state issued $100 municipal bond, and 1/2/20X2, repaid

interest $10 and part of the principal $50. Journal entry are as follows : Date Debit Credit Jan 2, 20X1 Cash $100 OFS $100 Dec 31, 20X1 - No entry - c. In modified accrual, bond amortization cost is recognized as expenditure in full. d. Bond anticipation note is reported in other finance sources, because of accurate measurement of working capital.