ACC 501 CH. 6&7 EXAM QUESTIONS
AND ANSWERS GRADED A+ 2026
Which of the following would not be considered a general long-term liability?
a. The estimated liability to clean up the hazardous waste storage sites of the city's Public Works
Department
b. Capitalized equipment leases of the water utility fund
c. Compensated absences for the city's Police Department
d. Five-year notes payable used to acquire computer equipment for the city's administrative
offices. - ANS b. Capitalized equipment leases of the water utility fund
Proceeds from bonds issued to construct a new city hall would most likely be recorded in the
journal of:
a. Capital projects fund
b. Debt Service fund
c. General fund
d. Enterprise fund - ANS a. Capital projects fund
The liability for long-term debt issued to finance a capital project will appear in which financial
statement?
a. Government wide statement of net position
b. Capital projects fund balance sheet
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
AND ANSWERS GRADED A+ 2026
Which of the following would not be considered a general long-term liability?
a. The estimated liability to clean up the hazardous waste storage sites of the city's Public Works
Department
b. Capitalized equipment leases of the water utility fund
c. Compensated absences for the city's Police Department
d. Five-year notes payable used to acquire computer equipment for the city's administrative
offices. - ANS b. Capitalized equipment leases of the water utility fund
Proceeds from bonds issued to construct a new city hall would most likely be recorded in the
journal of:
a. Capital projects fund
b. Debt Service fund
c. General fund
d. Enterprise fund - ANS a. Capital projects fund
The liability for long-term debt issued to finance a capital project will appear in which financial
statement?
a. Government wide statement of net position
b. Capital projects fund balance sheet
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
