1. In governmental funds, expenditures are recognized in the period in which the fund liability is paid.

2. Proprietary funds report both financial assets and nonfinancial assets.

3. On the balance sheet of governmental funds, capital assets may be reported if the amounts are material.

4. A school district is an example of a special purpose government.

5. On the balance sheet of governmental funds, general obligation bonds payable due in 10 years are reported under long-term liabilities.

6. Enterprise funds provide services primarily to the citizens of the government.

Mark true or false.