7. Bonds Payable would pot appear on A) The Government-wide B) The Statement of Net Position of an Enterprise fund C) The Balance sheet of a Capital Projects fund O) The Statement of Net Position of an Internal service fund Statement of Net Assets 8. Normally if a local government issues bonds at a premium, the premium A) Used to expand the project 8) Transferred to the General fund and used for general expenditures C) Transferred to another capital projects fund to pay for another capital project D) Transferred to the debt service fund to repay the creditors amount would be: Which of the following is not an infrastructure? A) Buildings B) Sidewalks C) Bridges 9. D) Roads 10. Donated assets are reported in the government-wide financial statements at: A) Historical cost to the donor B) Fair market value at the time of the donation C) Book value of the donor D) Zero because donated assets are not recorded on the statement of net position 11. 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 govern D) They don't prefer to classify debt as long-term mental fund statements 12. Which of the following collectibles need not be capitalized and reported on a city's government- wide statement of net position? A) A painting that the city purchased to be placed in the mayor's office B) A statue donated to the city which it intends to sell and use the proceeds to fund an after school program C) A painting that the city purchased for the city's art museum D) A set of books that the city intend to place in its general circulation library 13, Per GASB #34, roads and bridges should be capitalized and reported as assets on: A) Both a government-wide statement of net position and a general fund balance sheet B) Neither a government-wide statement of net position nor a general fund balance sheet C) A government-wide statement of net position but not a general fund balance sheet D) A general fund balance sheet but not a government-wide statement of net position 1. Which of the following would least likely be considered a general capital asset? A) Electric Utility lines B) Buildings C) Automobiles D) Computers 2. Which of the following accounts would you least expect to see in a debt service fund? A) Interest charges B) Interest earned C) Outstanding balance of the debt being serviced D) Principal payments A capital project fund is a type of: A) Proprietary fund B) Governmental fund C) General fund D) Fiduciary fund 3. Which of the following are the correct categories of the Net Position section of Proprietary Funds? A) Restricted, Unassigned, Committed B) Net Investment in Capital Assets less Related Debt, Unrestricted, Restricted C) Net Investment in Capital Assets less Related Debt, Committed, Restricted D) Unrestricted, Temporarily Restricted, Permanently Restricted 4. Which of the following accounts is least likely to be shown on the balance sheet of a capital projects fund? A) Cash B) Investments C) Buildings 5. D) Due from General Fund If a local government has both capital projects and debt 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 6. 14. Approximately what percentage of local governments use the modified approa ch in lieu of standard depreciation for infrastructure assets? AJ 5% B) 25% C) 50% D)80% 15. Under GASB which costs would not be capitalized? A) Acquisition costs B) Construction interest costs C) Transportation costs D) Installation costs 16. Escheat property is private property reverted to a government because A) Homeowners did not pay their property taxes B) The government needed the property for an infrastructure project C) There was no claimant or heir to the property D) It was donated to the government for public use 17. The annual repayment of principal on a serial bond should 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 18. Under GASB, in order for an art collection to avoid being capitalized, it needs to satisfy three conditions. Which of the following is not one of these conditions? A) They are protected and preserved B) They are subject to a policy that requires the proceeds from the sale of collection items to be used to acquire other items for the collection C) They are held for public exhibition D) They are appraised within every three year period 19. Which of the following is not a bond rating company? A) Standard &Poor's B) MBIA C) Fitch D) Moody's For Questions 20-24, please answer True (A) or False (B) 20. RANS and TANS are usually classified as current liabilities? A) True B) False 21. General Obligation Bonds are backed by the full faith and credit of a local government? A) True 8) False 22. Revenue Bonds usually carry lower interest rates than General Obligation Bonds? A) True 8) False 23. Governments can file for bankruptcy under Chapter 8 of the Federal Bankruptcy code? A) True B) False 24. Term bonds promote inter-period equity better than serial bonds? A) True B) False 25. Which of the following is generally not a reason why governments engage in business-type activities? A) They can use the activities to raise property taxes B) They can provide the activity more economically C) They want to control the activity D) The activities support the mission of the government, Le, quality of life, and may not be available by third parties 26. Which of the following is true of demand 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 27. Demand bonds should be reported as governmental fund liabilities A) If the government has not entered into a take-out agreement B) If prevailing interest rates are higher than the interest rate on the bonds C) If prevailing interest rates are lower than the interest rate on the bonds D) They are always reported as governmental fund liabilities 28. Which of the following conditions would not automatically classity a lease as a capital lease rship Is ferred to the lessee at the end of the lease term B) The term of the lease is 75% of the useful life of the property C) The lease contains an option permitting the lessee to purchase the D) The present value of rental and other minimum lease payments equals property at a bargain fair value of the leased property or exceeds 50% of the 29. An Internal Service fund is an example of a: A) Permanent fund B) Fiduciary fund C) Governmental fund D) Proprietary fund 30. Which of the following funds is on a full accrual basis? A) Enterprise fund 8) General fund C) Special Revenue fund D) Permanent fund 31. Which of the following is not a required statement of Proprietary funds? A) Statement of Cash Flows B) Statement of Net Position C) Statement of Revenues, Expenses, and Changes in Net Position D) Statement of Activities 32. The Statement of Cash Flows for Proprietary funds has how many categories? A) Two B) Three C) Four D) Six 33. A county makes an interest payment of $2 million on its utility fund revenue bonds that were issued to finance new sewer lines. In the utility fund statement of cash flow, the payment would be reflected as a cash flow from which activity? A) Operating B) Non-capital financing C) Capital and related financing D) Investing 34. A sewer fund temporarily invests the proceeds from issuing revenue bonds in U.S. Treasury bills and receives interest of $50,000. In the sewer fund cash flow statement, the receipt would be reflected as cash flow from B) Operating activities C) Non-capital financing activities D) Capital and related financing activities 35. Self-insurance activities usually appear in: A) Private Purpose Funds B) Internal service funds C) Enterprise funds D) Special revenue funds 36. Which of the following activities would not normally be accounted for in an enterprise fund A) Public parking garage B) Golf course C) Electric utility D) Government stockroom 37. ABC County, whose fiscal year ends 12/31/18, issued Bond Anticipation Notes (BANs) On 10/1/18. During February, 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? YES YES For Questions 38-40, please answer True (A) or False (B) 38. If user charges are paid by third parties, then a government would use an internal service fund? A) True B) False 39. Term bonds typically carry a higher interest rate than serial bonds? A) True B) False 40. Municipal debt typically carries a higher interest rate than corporate debt? A) True B) False