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Multiple Choice (12 points) 1) When a computer which is to be used by an activity accounted for by the General Fund of a governmental unit is received, it should be recorded in the General Fund as a(an): A) Encumbrance. B) Appropriation. C) Expenditure. D) Capital asset 2) Which fund accounts for resources donated to the state and local government, for which the principal (or corpus) must remain intact, and only earnings can be spent? A) General Fund B) Debt Service Fund C) Permanent Fund D) Internal Service Fund 3) Suppose the end of a city's fiscal year is June 30, 20A. The city has taxes receivable at the end of the year amounting to $45,000. Under which circumstance would the corresponding tax revenue be reclassified as deferred outflow at the end of the year? A) If it is likely the $45,000 will not be collected. B) All taxes owed by taxpayers at the end of the year are reclassified as deferred inflow. c) If it is expected the taxes will not be collected before August 30, 20A. D) Deferred outflow is not associated with taxes. 4) An Ad valorem tax is: a) A tax based on the earnings of the recipient of the tax. b) A tax based on the value of an asset of property. c) A tax that is imposed only on tax payers benefitting from a specific project. d) A tax that is levied, but will not be recorded as revenue until a later fiscal year. 5) A property is assessed by the city at $2,300,000. The city's millage rate is 32 mills. What will be the amount or property taxes associated with this property? A) $736,000 B) $32,000 C) $64,000 D) $73,600 6) How many debt service funds are recommended for a city by the GASB? A) one B) one for each major long-term debt issuance C) three or fewer D) one debt service fund is typically associated with each capital projects fund

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