If the government is primarily or secondarily liable for the payment of debt principal and interest for a special assessment project:
A) The tax levy and debt service expenditures should be recorded in an internal service fund.
B) A special revenue fund should account for the proceeds of the debt and construction expenditures
C) The project is accounted for within governmental type funds as if it were a governmental project
D) The debt is not recorded in the government-wide statements

Question

Quizplus · Accepted Answer

If the government is liable, either primarily or secondarily, for the payment of special assessment debt in the event of default by the property owners, the transactions are handled if as if it were a government project. A capital projects fund should account for the proceeds of the debt and the construction expenditures.

If the Government Is Primarily or Secondarily Liable for the Payment