1)Both the periodic and perpetual inventory systems may be used with

• the consumption method.
• the purchases method if local laws require this method of accounting.
• either the consumption or the purchases method.
• the purchases method.

2)A School District General Fund has a periodic inventory system and has a beginning inventory of $50,000; its ending inventory was $75,000. Materials of $100,000 were purchased during the year. Under the purchases method, the General Fund would report expenditures of

• $100,000
• $75,000
• $50,000
• $125,000

3)A School District General Fund has a periodic inventory system and has a beginning inventory of $50,000; its ending inventory was $75,000. Materials of $100,000 were purchased during the year. Under the consumptionmethod, the General Fund would report expenditures of

• $50,000
• $75,000
• $125,000
• $100,000

4)A School District General Fund entered into an equipment capital lease for 10 new school buses. The present value of the minimum lease payments is $12,580,000 and a down payment of $1,000,000 was required. What is the net effect on the fund balance of the General Fund in the year of the lease inception?

• Increase of $1,000,000
• Increase of $12,580,000
• Decrease of $1,000,000
• Decrease of $12,580,000

5)A School District General Fund entered into an equipment capital lease for 10 new school buses. The present value of the minimum lease payments is $12,580,000 and a down payment of $1,000,000 was required. What is the net effect of the nonfund account's net position?

• Decrease of $12,580,000
• Increase of $1,000,000
• Increase of $12,580,000
• Decrease of $1,000,000

6)A School District pays $500,000 related to an operating lease. What is the journal entry for this transaction and the effect on nonfund accounts if any.

• No entry required
• Debit Other financing uses operating lease $500,000; credit cash $500,000; no effect on nonfund accounts
• Debit expenditure operating lease $500,000; credit cash $500,000; no effect on nonfund accounts
• Debit expenditure capital outlay $500,000; credit cash $500,000; increase GCA and increase in GLTL $500,000

7)A Government has outstanding claims and judgements of $3,000,000. It is reasonably estimated that a Governments Claims and Judgements plus legal fees will amount to $1,500,000. The amounts of those claims that will be due and payable from the General Fund by the end of the year amount to $700,000. What is the journal entry to record the claims and judgements expenditure in the General Fund?

• Debit expenditures claims and judgements $700,000; credit accrued liabilities $700,000
• Debit expenditures claims and judgements $3,000,000; credit accrued liabilities $3,000,000
• Debit Expenditures claims and judgements $800,000; credit accrued liabilities $800,000
• Debit expenditures claims and judgements $1,500,000; credit accrued liabilities $1,500,000