Choose the best answer for each of the following questions.

1			In order to provide for the retirement of general obligations bonds, a governmental entity invested a portion of its cash receipts for revenues in marketable securities. This investment activity may be accounted for in:
			A)	A trust fund
			B)	An enterprise fund
			C)	A debt service fund
			D)	A special revenue fund
			E)	Some other fund
2			The proceeds of a federal grant made to assist in financing the construction of an adult education center by a governmental entity are recorded in:
			A)	The general fund
			B)	A special revenue fund
			C)	A capital projects fund
			D)	An internal service fund
			E)	Some other fund
3			The liability for special assessment bonds that carry a secondary pledge of the State of Texas general credit might be recorded in:
			A)	An enterprise fund
			B)	A special revenue fund and the general long-term debt account group
			C)	The general long-term debt account group
			D)	A special assessment fund and disclosed in a note to the statement of changes in general long-term debt
			E)	Some other manner
4			Which of the following types of bonds of a governmental entity is never recognized as a liability of a debt service fund?
			A)	Serial bonds
			B)	Revenue bonds
			C)	Term bonds
			D)	General obligation bonds
			E)	None of the foregoing
5			Might the general capital assets account group of a governmental entity be used to account for the plant assets of?
			A)	Governmental Funds: No; Proprietary Funds: Yes
			B)	Governmental Funds: No; Proprietary Funds: No
			C)	Governmental Funds: Yes; Proprietary Funds: No
			D)	Governmental Funds: Yes; Proprietary Funds: Yes
6			The governmental funds category of a governmental entity include all of the following except:
			A)	General fund
			B)	Agency fund
			C)	Capital projects fund
			D)	Debt service fund
7			Is an Expenditures ledger account included in the accounting records of a governmental entity's:
			A)	Special Revenue Fund: Yes; Capital Projects Fund: Yes; Debt Service Fund: Yes
			B)	Special Revenue Fund: Yes; Capital Projects Fund: No; Debt Service Fund: Yes
			C)	Special Revenue Fund: No; Capital Projects Fund: Yes; Debt Service Fund: No
			D)	Special Revenue Fund: No; Capital Projects Fund: Yes; Debt Service Fund: Yes
8			An Amount to Be Provided ledger account is included in the accounting records of a governmental entity's:
			A)	Debt service fund only
			B)	General long-term debt account group only
			C)	Debt service fund and general long-term debt account group
			D)	Special revenue fund only
9			The general capital assets account group and general long-term debt account group do not fit the definition of funds.
			A)	True
			B)	False
10			The proceeds from the issuance of general obligation bonds for a school district are recorded in the general long-term debt account group.
			A)	True
			B)	False
11			Modified accrual basis of accounting is appropriate for all governmental funds.
			A)	True
			B)	False
12			There are three types of Account Groups, general capital assets account group, special revenue group and General long-term debt account group.
			A)	True
			B)	False
13			Special Revenue Funds are established to account for revenues and expenditures earmarked for specified governmental operations or are legally restricted for specific purposes.
			A)	True
			B)	False