ACC504 Midterm Exam Latest (25 MCQs & 5 long questions) all are correct

  

Question

Question 1 Which of the following is properly reported as a liability of the General Fund?

Question 1 options:

Accounts payable

General obligation bonds payable

Tax anticipation notes payable

Both b and c are correct

Question 2 Debt
service funds are used to record:

Question 2 options:

Neither principal nor interest payments of debt issues.

Only interest payments on debt issues.

Both principal and interest payments of debt issues.

Only principal payments of debt issues.

Question 3 When a vehicle is ordered by a government, the purchase order should be recorded in
the General Fund as a debit to

Question 3 options:

Encumbrances

Appropriations

Equipment

Expenditures

Question 4 Internal service funds should be used only if

Question 4 options:

The reporting government provides services primarily to external participants.

The reporting government is the predominant participant in the activity.

Either A and B.

Neither A nor B.