Question

1. Revenues in a Debt Service Fund are recognized when

1. They are collected in cash.
2. They are measurable and available.
3. They are measurable and earned.
4. Debt service payments are due.

2. Equity in a Debt Service Fund is known as

1. Restricted net position.
2. Fund balance.
3. Net investment in capital assets.
4. Unrestricted net position.

3. What measurement focus does a Debt Service Fund use?

1. Total financial resources.
2. Current financial resources
3. Economic resources
4. Cash resources

4. All of the following statements regarding a Debt Service Fund are true except

1. A Debt Service Fund is rarely used to account for all of a governmental entity's general obligation bond repayments.
2. Debt service on capital lease obligations is generally not accounted for in a Debt Service Fund.
3. A government may have several Debt Service Funds.
4. A government may use one Debt Service Fund to account for multiple general government debt issuances.

5. A government is required to use a Debt Service Fund in which of the following cases?

1. Capital leases.
2. When financial resources are being accumulated for long-term general government principal and interest maturing in future years.
3. Debt refunding.
4. All general obligation long-term debt.

6. Which of the following transactions would not be reported as expenditures in a Debt Service Fund?

1. Issuance costs incurred in a refunding bond issuance.
2. Payments to escrow agents with resources transferred from the General Fund.
3. Arbitrage rebate.
4. Repayment of BANs issued to finance a capital project.

7. Which of the following types of transactions would not potentially be reported as expenditures in a Debt Service Fund?

1. Retirement of long-term debt principal.
2. Interest on long-term debt.
3. Discounts on refunding debt.
4. Bond issuance costs.

8. Debt Service Fund expenditures reported on the Statement of Revenues, Expenditures, and Changes in Fund Balance commonly exclude

1. Fiscal agent fees.
2. Interest expenditures.
3. Principal retirement expenditures.
4. Gains and losses on early retirement of debt.

9. Principal and interest expenditures on general long-term debt should be recognized in the period

1. That the costs are incurred.
2. Prior to the year in which they are due, i.e., when they become short-term debt.
3. That they are legally due and payable.
4. That they are paid.

10. Debt service expenditures on general long-term debt principal should be recognized in the period that the liability:

1. accrues, if paid.
2. accrues, whether or not paid.
3. is legally due, if paid.
4. is legally due, whether or not paid.

Answer 1

Revenues in a Debt Service Fund are recognized when
The correct answer is option B i.e. They are measurable and available.
Revenues in a Debt Service Fund are recognized when they are measurable and available.
Equity in a Debt Service Fund is known as
The correct answer is option A i.e. Restricted net position.
Equity in a Debt Service Fund is known as Restricted net position.
What measurement focus does a Debt Service Fund use?
The correct answer is option C i.e. Economic resources
Debt Service Fund use Economic resources measurement focus
All of the following statements regarding a Debt Service Fund are true except
The correct answer is option A i.e. Debt Service Fund is rarely used to account for all of a governmental entity's general obligation bond repayments.
The following statements are true regarding Debt service fund:
a) Debt service on capital lease obligations is generally not accounted for in a Debt Service Fund.
b) government may have several Debt Service Funds.
c) A government may use one Debt Service Fund to account for multiple general government debt issuances.
Since all the questions are different I had provided the solution for first four question. Please post other questions separately.