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For Each of the Following Transactions, Select the Area of Accounting

Question 108

Matching

For each of the following transactions, select the area of accounting records in which an entry will be recorded for governmental fund financial statements and for government-wide financial statements

Premises:

Responses:

The city council adopts an annual budget for the general fund.

General fund only.

Property taxes are levied.

Governmental activities only.

Computers are ordered for the fire department.

General fund and Governmental activities.

A transfer of funds is made from the general fund to the debt service fund.

General fund and Debt service fund.

The principal and interest of a bond are paid.

Capital projects fund and Governmental activities.

A building is acquired for the police department, and renovations begin immediately.

Debt service fund and Governmental activities.

Depreciation on fire trucks is recorded.

Special revenue fund and Governmental activities.

Citizens are assessed for a street lighting project that has been legally restricted for those citizens.

A grant is received to landscape tree-lined areas beside city-owned streets.

The city spends grant money received in (9.) above and landscapes the tree-lined areas beside the streets for which the grant money was received.

Premises:

The city council adopts an annual budget for the general fund.

Property taxes are levied.

Computers are ordered for the fire department.

A transfer of funds is made from the general fund to the debt service fund.

The principal and interest of a bond are paid.

A building is acquired for the police department, and renovations begin immediately.

Depreciation on fire trucks is recorded.

Citizens are assessed for a street lighting project that has been legally restricted for those citizens.

A grant is received to landscape tree-lined areas beside city-owned streets.

The city spends grant money received in (9.) above and landscapes the tree-lined areas beside the streets for which the grant money was received.

Responses:

General fund only.

Governmental activities only.

General fund and Governmental activities.

General fund and Debt service fund.

Capital projects fund and Governmental activities.

Debt service fund and Governmental activities.

Special revenue fund and Governmental activities.

Correct Answer:

Premises:

Responses:

The city council adopts an annual budget for the general fund.

Property taxes are levied.

Computers are ordered for the fire department.

A transfer of funds is made from the general fund to the debt service fund.

The principal and interest of a bond are paid.

A building is acquired for the police department, and renovations begin immediately.

Depreciation on fire trucks is recorded.

Citizens are assessed for a street lighting project that has been legally restricted for those citizens.

A grant is received to landscape tree-lined areas beside city-owned streets.

The city spends grant money received in (9.) above and landscapes the tree-lined areas beside the streets for which the grant money was received.