True/False (Please Explain)

1. Under the modified accrual basis of accounting, there is no matching principle and no attempt to amortize costs that benefit multiple periods.

2. In fund accounting, expenditures may be classified in different ways, such as by program or activity.

3. When government funds reimburse one another, the expenditure of the fund paying for the cost is increased and the expenditure of the fund reimbursed is decreased.

4. Loans between funds are handled in account receivable and account payable accounts.

5. GASB 42 requires disclosures about capital asset impairment if the decline in service is minimal.

6. Government accounting principles dictate that interest received on investments be treated as cash inflow from investing activities.

7. Payments received by a city utility fund would appear on a statement of cash flows for government funds.

8. Revenues for government funds include taxes, assessments, proceeds from bonds, and fines.

9. The general fund recognizes revenue when earned by the enterprise recognizes revenue when available