The village of Bear Creek uses General Fund resources to pay debt service payments for its sole outstanding general obligation bonds, which were issued to finance the new Village Hall. Which of the following statements is false?
A) GAAP require the village to use a Debt Service Fund to account for the payment of principal and interest on the long-term debt if the debt covenant calls for it.
B) GAAP permit but do not require the village to use a Debt Service Fund to account for the payment of principal and interest on the long-term debt.
C) The General Fund would record an expenditure for both the principal and interest portions of the debt service payment.
D) The General Fund may record an expenditure for only the interest portion of the debt service payment.
Correct Answer:
Verified
Q10: Assume that General Fund employees accrued $125,000
Q11: The General Fund reported a beginning balance
Q12: A government with a beginning inventory of
Q13: Rutherford County uses the consumption method to
Q14: The minimum amount of detail permitted by
Q16: Assume that a government purchases $85,000 of
Q17: Which of the following is not a
Q18: A general government department of the City
Q19: Expenditures are defined as
A) Costs expired.
B) Uses
Q20: City of Alnwick makes pension contributions on
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents