1.If a local government has bothcapital projectsanddebt service funds and issues $500,000 in bonds, which of the following entries would be most appropriate?

A) CPF: Dr. Cash $500,000 and Cr. OFS-Proceeds from bonds $500,000

B) DSF: Dr. Cash $500,000 and Cr. OFS-Proceeds from bonds $500,000

C) CPF: Dr. Cash $500,000 and Cr. Bonds Payable $500,000

D) DSF: Dr. Cash $500,000 and Cr. Bonds Payable $500,000

2.Which of the following accounts isleast likelyto be shown on the balance sheet of acapital projects fund?

A) Cash

B) Investments

C) Buildings

D) Due from General Fund

3.Governments prefer to classify debt as long-term because:

A) Long-term debt does not appear on Enterprise statements

B) Long-term debt does not appear on governmental fund statements

C) Short-term debt does not appear on governmental fund statements

D) They don't prefer to classify debt as long-term

4.The annual repayment of principal on a serial bondshould be reported in a Debt Service fund as:

A) An expenditure

B) An "Other Financing Use"

C) A reduction of Bonds Payable

D) A direct charge to the Fund Balance

5.Which of the following is true ofdemand bonds?

A) They give the issuer the right to call the bonds at a pre-established price

B) They give the issuer the right to demand that the bondholders purchase additional bonds at a pre-established price

C) They give the bondholder the right to demand repayment prior to maturity

D) They give the bondholder the right to first refusal with respect to any additional bonds sold by the issuer

6.ABC County, whose fiscal year ends 12/31/18, issued Bond Anticipation Notes (BANs) On 10/1/18. DuringFebruary,2019 before the 2018 financial statements were issued, ABC County replaced the BANs with a 10 year term bond. On which of ABC's 12/31/18 financial statements would a liability for the BANs appear?

Governmental FundGovernment-WideStatement

A)NONO

B)NOYES

C) YESNO

D)YESYES