Question

Indicate whether each statement is true or false by selecting the appropriate circle.

Statement	True	False
1. Capital projects funds account for proceeds of specific revenue sources that are legally required to be spent for specified purposes.
2. Utility bill payments are recognized in a proprietary fund.
3. The economic resources measurement focus is used to report the government-wide financial statements.
4. Capital assets and long-term liabilities specifically related to proprietary funds activities are accounted for using the modified accrual basis of accounting.
5. Governmental funds are accounted for using the accrual basis of accounting.
6. Government-wide financial statements report general long-term liabilities.

Answer 1

1. True

As fund account basically maintained for compliance of legal requirements of the governmental resources on specific purposes.

2. True

Here utility bills meant for dues to suppliers, customers etc.(user charges collected by the government)

3. True

Yes used for governmen widet financial statements rep rep reporting.

6. True (yes it's financial statements report general long term liabilities)

5. Yes true

4. True as governmental Accounting is based on accrual base of accounting

Thank you:+)

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