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ACC 501 CH. 6&7 QUIZ 2026 LATEST
QUESTIONS AND ANSWERS| ACE YOUR
GRADES.
If bonds are sold at a premium:
a. The premium is typically recorded in the debt service fund at
the fund level
b. The premium is amortized at the government-wide level
c. The premium is recorded as a component of the bond liability at
the government-wide level
d. all of the above - correct answer -d
Annual lease payments: - correct answer -Are recorded at both
the fund and government-wide levels
Long-term liabilities of a government: - correct answer -Include
compensated absences, claims and judgments, and pollution re-
mediation obligations and are only reported at the government-
wide level within the financial statements
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Within the government-wide financial statements, the column for
Business-type Activities will generally include: - correct answer -
Enterprise funds only
What would most likely be accounted for in an internal service
fund - correct answer -An asphalt plant used to supply the
asphalt needed to resurface the city's streets
Under GASB standards, the City of Parkview is required to use an
enterprise fund to account for its nature center if: - correct
answer -The ordinance that was passed to establish the nature
center requires that all costs of the nature center be paid for by
user fees
Which event would generally be classified as nonoperating on an
enterprise fund's statement of revenues, expenses, and changes
in fund net position - correct answer -Loss on the sale of a piece
of equipment
Under GASB Standards, the following event would be classified
as an investing activity on a proprietary fund's statement of cash
flows: - correct answer -Interest earned on certificates of deposit
held by the proprietary fund
ACC 501 CH. 6&7 QUIZ 2026 LATEST
QUESTIONS AND ANSWERS| ACE YOUR
GRADES.
If bonds are sold at a premium:
a. The premium is typically recorded in the debt service fund at
the fund level
b. The premium is amortized at the government-wide level
c. The premium is recorded as a component of the bond liability at
the government-wide level
d. all of the above - correct answer -d
Annual lease payments: - correct answer -Are recorded at both
the fund and government-wide levels
Long-term liabilities of a government: - correct answer -Include
compensated absences, claims and judgments, and pollution re-
mediation obligations and are only reported at the government-
wide level within the financial statements
, Page | 2
Within the government-wide financial statements, the column for
Business-type Activities will generally include: - correct answer -
Enterprise funds only
What would most likely be accounted for in an internal service
fund - correct answer -An asphalt plant used to supply the
asphalt needed to resurface the city's streets
Under GASB standards, the City of Parkview is required to use an
enterprise fund to account for its nature center if: - correct
answer -The ordinance that was passed to establish the nature
center requires that all costs of the nature center be paid for by
user fees
Which event would generally be classified as nonoperating on an
enterprise fund's statement of revenues, expenses, and changes
in fund net position - correct answer -Loss on the sale of a piece
of equipment
Under GASB Standards, the following event would be classified
as an investing activity on a proprietary fund's statement of cash
flows: - correct answer -Interest earned on certificates of deposit
held by the proprietary fund
