General government long-term debt

	a.	s recorded with a debit to Cash and a credit to Other Financing Sources in a Government Fund when the debt is issued and debt proceeds have been received
	b.	Is recorded in an Permanent Fund when issued and then transferred to a Debt Service Fund when due
	c.	Results in a decrease to the fund balance of a Government Fund when issued
	d.	Principal and interest are recorded in the GLTL until maturity

A Police Department accounted for in a Citys General Fund recorded the purchase of a new police car for $54,000 in cash. The police car is estimated to have a useful life of 5 years and a $4,000 salvage value at the time of purchase. Which of the following would be an effect of this transaction on the fund balance of the Citys General Fund?

	a.	An increase of $50,000 in the General Funds fund balance
	b.	A decrease of $4,000 in the General Funds fund balance
	c.	A decrease of $54,000 in the General Funds fund balance
	d.	An increase of $54,000 in the General Funds fund balance

A city department accounted for in the city's general fund entered into a capital lease to purchase equipment on May 31st, 2021. The capitalizable cost of the leased equipment was $700,000. The first of 10 annual lease payments of $75,000 each was due and paid on June 1st 2022. The capital lease has an implicit interest rate of 10%. As a result of recording the capital lease transaction, the fund balance of the general fund will decrease by $5,000 on May 31st 2021.

True

False

GASB requires that every SLG

	a.	Issue year-end financial statements for the GCA and GLTL
	b.	Use the accrual basis of accounting for expendable funds.
	c.	Maintain a General Fund
	d.	Maintain at least one Special Revenue Fund during each fiscal reporting period