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Equity in a Debt Service Fund is known...

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Equity in a Debt Service Fund is known as a. Invested in capital assets, net of related debt. b. Fund balance. c. Restricted net assets. d. None of the above. In the year that a governmental entity enters into an advance refunding, which of the following note disclosures would not be required? a. The amount of in-substance defeased debt that is still outstanding. b. The present value of the net debt service savings or cost of advance refunding transaction. c. The difference between total of the remaining debt service requirements of the old defeased issue and the total debt service requirements of the new issue, adjusted for any additional cash received or paid. d. Each of the above note disclosures would be required. What measurement focus does a Debt Service Fund use? a. Economic financial resources b. Current financial resources c. Cash resources d. None of the above. 5. All of the following statements regarding a Debt Service Fund are true except a. A Debt Service Fund is rarely used to account for all of a governmental entity's general obligation bond repayments. b. A government may have several Debt Service Funds, or it may use one Debt Service Fund to account for multiple general government debt issuances. c. Debt service on capital lease obligations is generally not accounted for in a Debt Service Fund. d. All of the above statements are true. e. Both items B and C are false. 6. Which of the following would not be a potential financial resource for a Debt Service Fund? a. Sales tax b. Property taxes c. Transfers from the General Fund d. Proceeds of refunding debt e. All of the above represent potential financial resources for a Debt Service Fund. 7. If cash from the General Fund is transferred to a Debt Service Fund, the entry in the Debt Service Fund would a. DEBIT cash and CREDIT revenues. b. DEBIT cash and CREDIT deferred revenue. c. DEBIT cash and CREDIT other financing sources. d. DEBIT cash and CREDIT fund balance. e. DEBIT cash and CREDIT accounts receivable. 8. Which of the following transactions would not be reported as expenditures in a Debt Service Fund? a. Issuance costs incurred in a refunding bond issuance b. Payments to escrow agents with resources from the General Fund c. Arbitrage rebate d. All of the above would potentially be reported as expenditures in a Debt Service Fund. e. Both items B and C. 9. Which of the following statements regarding external financial reporting for a Debt Service Fund is false? a. A statement of revenues, expenditures, and changes in fund balance is required. b. A budget-to-actual statement may be prepared for internal use. c. A balance sheet is required. d. A statement of cash flows is required. e. A budget-to-actual statement is not required. 10. A government is required to use a Debt Service Fund in which of the following cases? a. All general obligation long-term debt b. Capital leases c. When financial resources are being accumulated for long-term general government principal and interest maturing in future years d. All of the above 11. A government has $3,000,000 of 6%, 10-year general obligation bonds outstanding. The bonds were issued on July 2, 20X7 to finance construction of a general capital asset. Interest is payable semiannually on January 1 and July 1. What is the minimum amount of interest expenditures that the government would be permitted to report on the bonds for 20X7? a. $0 b. $180,000 c. $30,000 d. $90,000 12. A government has $3,000,000 of 6%, 10-year general obligation bonds outstanding. The bonds were issued on July 2, 20X7 to finance construction of a general capital asset. Interest is payable semiannually on January 1 and July 1. What is the maximum amount of interest expenditures that the government would be permitted to report on the bonds for 20X7? a. $90,000 b. $180,000 c. $30,000 d. $0 13. Principal and interest expenditures on general long-term debt should be recognized in the period a. That they are paid. b. That the costs are incurred. c. That they are legally due and payable. d. Prior to the year in which they are due, i.e., when they become short-term debt. 14. Debt Service Fund expenditures commonly include a. Fiscal agent fees. b. Principal retirement expenditures. c. Interest expenditures. d. All of the above. 15. A Debt Service Fund received a $100,000 payment from the General Fund to finance upcoming debt service payments. During the year, Debt Service Fund payments of $50,000 interest and $60,000 principal were made as they become due. The Debt Service Fund statement of revenues, expenditures, and changes in fund balance should report a. An excess of expenditures over revenues of $10,000. b. An excess of revenues over expenditures of $50,000. c. An excess of expenditures over revenues of $110,000. d. An excess of expenditures over revenues of $50,000.,please cancel this request. I have already completed it.

 

Paper#6590 | Written in 18-Jul-2015

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