27. In October 2022, the General Fund paid $100,000 for an invoice owed by an enterprise fund. In February 2023, the enterprise fund reimbursed the $100,000 to the General Fund. Which of the following statements is correct?

a. The $100,000 that the enterprise fund paid into the General Fund is accounted for as an inter-fund transfer.

b. The General Fund recognized an expenditure of $100,000 when it paid the bill. C. Both "a" and "b" are correct. d. Neither "a" nor "b" are correct.

28. A general fixed asset is considered impaired if: a. Its service capacity has declined substantially and unexpectedly. b. It no longer generates enough cash flows. c. Its useful life has ended. d. All of the above are correct.

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29. With respect to derivative financial instruments:

a. State and local governments are prohibited from investing in derivative financial instruments.

b. Governments can invest in these instruments and there is no need to disclose additional information as they are risk-free.

c. Governments investing in these instruments should disclose the reasons for doing so. d. What is a derivative financial instrument?

30. The GASB lease rule requires that lessee governments account for a long-term lease (more than 12 months) for government-wide purposes as follows:

a. If the lease is operational, they will not recognize assets or debt in the Statement of Net Position.

b. Regardless of whether the lease is operational or financial, they will recognize a right- to-use asset and debt equal to the present value of the lease payments.

c. An asset will be recognized (right-to-use asset), but it will not be amortized. d. I didn't pay attention to this topic in class.

31. Which of the following is identified as a Revenue Anticipation Note (TAN or RAN)?

a. Three months before property owners have to pay their property taxes, the government borrows, signs a three-month promissory note, and secures the debt with the property taxes it will collect.

b. The government received a reimbursement grant, and to fund the activities related to the grant, the government borrows, signs a six-month promissory note, and secures the debt with the money it will receive from the grant.

c. Both "a" and "b" are examples of RANS. d. Neither "a" nor "b" are examples of RANS.