1.At the beginning of the year, a capital projects fund purchases $6 million in equipment for cash. The equipment has a 5-year life, straight-line. A year-end, this purchase reduces the capital projects funds fund balance by

a. 4.8 milion

b.1.2 million

c. 6 million

d. No effect

2.Which account will you never see on the balance sheet of a capital projects fund?

a. Due from other funds

b. Inventory

c. Fund balancenonspendable

d. Net position invested in capital assets

3.A debt service fund makes a principal payment on general obligation bonds. This payment is reported on the debt service funds:

a. Operating statement as an other financing source

b. Balance sheet as a reduction in liabilities

c. Operating statement as an other financing use

d. Operating statement as an expenditure