Week 2 Quiz Acc380

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| Question :| If taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are:|
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 | Student Answer:| | Included as a liability of the general fund |  | | | Recorded as operating transfers to the debt service fund |  | | | Included as revenues of the debt service fund |  | | | Both A and B are correct |

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 | Points Received:| 1 of 1 |
 | Comments:| |
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 2.| Question :| If taxes and/or special assessments are levied by the General Fund and then are subsequently transferred to the debt service fund, they are:|
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 | Student Answer:| | Recorded as revenues of the debt service fund |  | | | Included in the revenues budget of the general fund and are also budgeted by that fund as transfers out to the debt service fund |  | | | Included as transfers out in the General Fund but are not budgeted as revenue in that fund |  | | | Recorded as an expense and voucher payable by the general fund and are recorded as a revenue and receivable by the debt service fund | |

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 | Points Received:| 0 of 1 |
 | Comments:| |
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 3.| Question :| What is a Special Revenue Fund?|
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 | Student Answer:| | Fund created to account for all resources and revenues to be used for the construction or acquisition of capital assets |  | | | Fund used to account for all revenue transactions of a governmental unit that are not accounted for in another fund |  | | | Fund used to account for revenues from general taxes or other revenue sources that by law are designated to finance general activities of the government |  | | | Fund used to account for revenues from specific taxes or other revenue sources that by law are designated to finance particular activities of the government other than capital projects | |

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 | Points Received:| 1 of 1 |
 | Comments:| |
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 4.| Question :| Which of the following lease criteria would not qualify a lease as a capital lease?|
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 | Student Answer:| | The lease transfers ownership of the property to the lessee by the end of the lease term |  | | | The lease contains an option to purchase the leased property at its fair market value |  | | | The lease term is equal to or greater than 75% of the estimated economic life of the leased property |  | | | The present value of the minimum lease payments equals or exceeds 90% of the fair value of the leased property | |

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 | Points Received:| 1 of 1 |
 | Comments:| |
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 5.| Question :| Property Taxes, special assessments and fines and forfeits are types of nonexchange transactions and assets should be recognized when an enforceable legal claim exists or when the resources are received, which ever is first. These are examples of:|

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 | Student Answer:| | Government-mandated nonexchange transactions |  | | | Imposed nonexchange transactions |
 | | | Deferred tax revenues |
 | | | Voluntary nonexchange transactions |
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 | Points Received:| 1 of 1 |
 | Comments:| |
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 6.| Question :| The entry to re-establish encumbrances related to purchase orders from the prior year would include:|
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 | Student Answer:| | A debit to Fund Balance – Unreserved |  | | | A debit to Encumbrances Control |
 | | | A credit to Fund Balance – Reserved for Encumbrances |  | | | None of the above |
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 | Points Received:| 1 of 1 |
 | Comments:| |
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 7.| Question :| In which fund type is interest on Long Term Debt typically not accrued, yet is recognized as an expenditure in the year in which interest is legally due?|
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 | Student Answer:| | Debt service fund |
 | | | Internal Service Fund |
 | | | Enterprise Fund |
 | | | Pension Fund |
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 | Points Received:| 1 of 1 |
 | Comments:| |
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