A Heroic Journey through Governmental Accounting Once upon a time in the enchanting land of Governanceville, three noble accountants, Alex, Olivia, and Max, set forth on a heroic journey to master the art of governmental accounting. Their mission was to bring financial transparency and prosperity to the realm by applying the modified accrual basis of accounting to various funds and preparing fund-basis financial statements. Our brave heroes arrived at the Village of General Fund, the heart of Governanceville. Here, they encountered a typical transaction: the collection of property taxes. Following the modified accrual basis, they recorded the revenue when it became measurable and available, which was when the property owners were legally obligated to pay. The villagers cheered as Alex, Olivia, and Max successfully recorded the transaction. The trio ventured to the Special Revenue Oasis, where they faced a challenging task: recording grants and contributions. Applying the modified accrual basis, they recognized these revenues when they became measurable and available, fulfilling the criteria set by the wise elders of Governanceville. Our heroes triumphed again, receiving gratitude from the beneficiaries of these special revenue projects. In the Capital Projects Realm, our heroes encountered the construction of a grand castle. They applied the modified accrual basis to record the issuance of bonds, which became liabilities to be paid back in the future. Additionally, they recognized expenditures when the resources were used, making careful note of each expense. As they entered the Debt Service Citadel, Alex, Olivia, and Max faced the challenge of recording debt payments. Using the modified accrual basis, they recorded the expenditure when the cash was disbursed to repay the debt. The citizens rejoiced, knowing that their debt was being managed responsibly. Finally, our heroes arrived at the Permanent Fund Sanctuary, where they encountered trust agreements. They skillfully classified and identified the appropriate fund reporting for these trust agreements, ensuring that the funds' resources would be preserved and utilized for the intended beneficiaries. Having accomplished their noble quest, Alex, Olivia, and Max returned to the Village of General Fund. They prepared the fund-basis financial statements for the various funds they encountered on their journey. Classifying the fund balances into nonspendable, restricted, committed, assigned, and unassigned, our heroes presented a comprehensive and clear picture of Governanceville's financial health. The celebration of their success echoed throughout Governanceville as the citizens praised Alex, Olivia, and Max for their dedication to mastering the art of governmental accounting. With financial transparency, accountability, and prosperity restored, Governanceville continued to thrive, thanks to the heroic accountants' unwavering commitment. According to the modified accrual basis, when are revenues recognized in the General Fund? When the budget is approved When resources are measurable and available When revenues are earned When cash is collected A Heroic Journey through Governmental Accounting Once upon a time in the enchanting land of Governanceville, three noble accountants, Alex, Olivia, and Max, set forth on a heroic journey to master the art of governmental accounting. Their mission was to bring financial transparency and prosperity to the realm by applying the modified accrual basis of accounting to various funds and preparing fund-basis financial statements. Our brave heroes arrived at the Village of General Fund, the heart of Governanceville. Here, they encountered a typical transaction: the collection of property taxes. Following the modified accrual basis, they recorded the revenue when it became measurable and available, which was when the property owners were legally obligated to pay. The villagers cheered as Alex, Olivia, and Max successfully recorded the transaction. The trio ventured to the Special Revenue Oasis, where they faced a challenging task: recording grants and contributions. Applying the modified accrual basis, they recognized these revenues when they became measurable and available, fulfilling the criteria set by the wise elders of Governanceville. Our heroes triumphed again, receiving gratitude from the beneficiaries of these special revenue projects. In the Capital Projects Realm, our heroes encountered the construction of a grand castle. They applied the modified accrual basis to record the issuance of bonds, which became liabilities to be paid back in the future. Additionally, they recognized expenditures when the resources were used, making careful note of each expense. As they entered the Debt Service Citadel, Alex, Olivia, and Max faced the challenge of recording debt payments. Using the modified accrual basis, they recorded the expenditure when the cash was disbursed to repay the debt. The citizens rejoiced, knowing that their debt was being managed responsibly. Finally, our heroes arrived at the Permanent Fund Sanctuary, where they encountered trust agreements. They skillfully classified and identified the appropriate fund reporting for these trust agreements, ensuring that the funds' resources would be preserved and utilized for the intended beneficiaries. Having accomplished their noble quest, Alex, Olivia, and Max returned to the Village of General Fund. They prepared the fund-basis financial statements for the various funds they encountered on their journey. Classifying the fund balances into nonspendable, restricted, committed, assigned, and unassigned, our heroes presented a comprehensive and clear picture of Governanceville's financial health. The celebration of their success echoed throughout Governanceville as the citizens praised Alex, Olivia, and Max for their dedication to mastering the art of governmental accounting. With financial transparency, accountability, and prosperity restored, Governanceville continued to thrive, thanks to the heroic accountants' unwavering commitment. Which fund would be used to record the construction of a new community center in Governanceville? General Fund Capital Projects Fund Permanent Fund Debt Service Fund A Heroic Journey through Governmental Accounting Once upon a time in the enchanting land of Governanceville, three noble accountants, Alex, Olivia, and Max, set forth on a heroic journey to master the art of governmental accounting. Their mission was to bring financial transparency and prosperity to the realm by applying the modified accrual basis of accounting to various funds and preparing fund-basis financial statements. Our brave heroes arrived at the Village of General Fund, the heart of Governanceville. Here, they encountered a typical transaction: the collection of property taxes. Following the modified accrual basis, they recorded the revenue when it became measurable and available, which was when the property owners were legally obligated to pay. The villagers cheered as Alex, Olivia, and Max successfully recorded the transaction. The trio ventured to the Special Revenue Oasis, where they faced a challenging task: recording grants and contributions. Applying the modified accrual basis, they recognized these revenues when they became measurable and available, fulfilling the criteria set by the wise elders of Governanceville. Our heroes triumphed again, receiving gratitude from the beneficiaries of these special revenue projects. In the Capital Projects Realm, our heroes encountered the construction of a grand castle. They applied the modified accrual basis to record the issuance of bonds, which became liabilities to be paid back in the future. Additionally, they recognized expenditures when the resources were used, making careful note of each expense. As they entered the Debt Service Citadel, Alex, Olivia, and Max faced the challenge of recording debt payments. Using the modified accrual basis, they recorded the expenditure when the cash was disbursed to repay the debt. The citizens rejoiced, knowing that their debt was being managed responsibly. Finally, our heroes arrived at the Permanent Fund Sanctuary, where they encountered trust agreements. They skillfully classified and identified the appropriate fund reporting for these trust agreements, ensuring that the funds' resources would be preserved and utilized for the intended beneficiaries. Having accomplished their noble quest, Alex, Olivia, and Max returned to the Village of General Fund. They prepared the fund-basis financial statements for the various funds they encountered on their journey. Classifying the fund balances into nonspendable, restricted, committed, assigned, and unassigned, our heroes presented a comprehensive and clear picture of Governanceville's financial health. The celebration of their success echoed throughout Governanceville as the citizens praised Alex, Olivia, and Max for their dedication to mastering the art of governmental accounting. With financial transparency, accountability, and prosperity restored, Governanceville continued to thrive, thanks to the heroic accountants' unwavering commitment. How are expenditures recognized in the Debt Service Fund under the modified accrual basis? When the resources are used for the project When the budget is approved When cash is disbursed to repay the debt When the debt is issued