For questions 1-8, please respond as True (T) or False (F). One point for each question.

• The state collects a gasoline tax that must be used to support highway construction and maintenance. The gasoline tax revenue should be accounted for in the Internal Service fund.
• For government funds, increases in spendable resources are reported as revenues or other financing sources and decreases in spendable resources are reported as expenditures or other financing resources.
• When a government fund pays $100,000 to a contractor after purchasing a building, the fund records the debit as Expenditures-capital projects. However a proprietary fund records a debit to Buildings.
• All government funds use accrual basis of accounting.
• Since the general fund is a catch-all fund, a government agency typically uses several general funds to record different types of transactions.
• Government wide financial statements include three basic financial statements, a statement of net assets, a statement of activities, and an income statement.
• The statement of net assets represents assets plus liabilities or fund balance.
• GASBS does not require the entity to report the non-spendable fund balance.