Which of the Following Is Not True

question 33

Multiple Choice

Which of the following is not true?

• A) The debt service activity of a government may be properly accounted for within the General Fund unless law mandates the use of a debt service fund.
• B) Debt service funds,unlike the General Fund and special revenue funds,do not use budgetary accounting procedures.
• C) Expenditures for interest on tax supported long-term debt are not accrued,even though debt service funds are accounted for on the modified accrual basis.
• D) At year-end,budgetary and operating statement accounts of a debt service fund are closed in the same manner as is true for a General Fund or special revenue funds.

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Definitions:

Adjusting Entries

Entries recorded in journals at the conclusion of an accounting cycle to properly distribute revenues and expenses to the corresponding period.

Adjusting Entries

Entries made in the accounting records at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Accruals

Adjusting entries for either accrued revenues or accrued expenses.

Deferrals

Adjusting entries for either prepaid expenses or unearned revenues.