T F 31. Committed Funds are those balances set aside for the construction of a new municipal airport.

T F 32. The passing of a state budget is considered a recordable accounting event according to GASB guidelines.

T F 33. A budget item is reflected in the books with a Debit to the estimated expense account and a credit to Appropriated Revenues.

T F 34. An Encumbrance is recorded on a municipalitys books only once an invoice is received for a purchase and a payable is properly established.

T F 35. Encumbrances reduce available balances in Fund Based accounting.

T F 36. A credit to Vouchers Payable is made once an invoice is received for equipment placed in service.

T F 37. A newly acquired asset such as a snow plow is recorded in the municipalitys General Fund.

T F 38. There are significant differences in capital lease accounting between FASB and GASB.

T F 39. If the minimum lease term is at least 90% of an assets useful life, it is considered to be a Capital Lease.

T F 40. If a lease has a bargain purchase option, it is most likely a Capital Lease.