Assume a Capital Projects Fund of Henry County is holding investments as of the end of the fiscal year. Which of the following statements is true related to the interest earned on the investments?

Select one:

a. Henry County would report accrued interest receivable and interest revenue in the Capital Projects Fund as of the end of the fiscal year.

b. The interest earned would be reported in the General Fund since it cannot be used to finance a capital project.

c. Henry County may choose to report interest revenue on the modified accrual basis or on the cash basis.

d. Henry County would only report interest revenue when the investment matured.

A government issued short-term bond anticipation notes for a capital project. The notes are to be repaid from bond proceeds if the voters approve the bonds. The bond anticipation notes

Select one:

a. Must be reported as debt of the Capital Projects Fund unless it is probable that the bond referendum will pass.

b. Must be reported as general long-term debt.

c. Must be reported as debt of the Capital Projects Fund if it is probable that the bond referendum will not pass.

d. Must be reported as debt of the Capital Projects Fund.

A government was billed $3,000,000 during the year on its capital project, of which $2,700,000 was paid. The total contracted cost is $5,200,000. The government does not plan to pay the $300,000 balance currently owed to the contractor until the project has been completed and approved. The government should report Capital Projects Fund expenditures for the current year equal to

Select one:

a. $2,700,000.

b. $3,000,000.

c. $5,200,000.

d. $4,900,000.

Which of the following should not be reported as other financing sources (uses) in a Capital Projects Fund?

Select one:

a. Transfer from General Fund.

b. Premium on general obligation bonds issued to finance a general government capital project.

c. Proceeds from special assessments levied against property owners to finance construction of a general government capital project initially financed with long-term debt.

d. Face value of general obligation bonds issued to finance a general government capital project.

Which of the following statements is false?

Select one:

a. Debt service payments on capital-related debt are paid from a Capital Projects Fund.

b. Capital leases are not commonly reported in a Capital Projects Fund.

c. A governmental entity may report a Capital Project Fund in one year but not the next.

d. Budgetary entries are commonly made in a Capital Projects Fund.