Billing and Collection of Special Assessments and Payment of Debt

question 36

Multiple Choice

Billing and collection of special assessments and payment of debt principal and interest on special assessment debt for which the city is not obligated in any manner should be recorded in a(an) :

• A) Debt service fund.
• B) Special assessment fund.
• C) Capital projects fund.
• D) Agency fund.

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Definitions:

GAAP

Stands for Generally Accepted Accounting Principles, constituting a framework of accounting standards, guidelines, and procedures used in the United States.

Special Or Unusual Items

Items in financial statements that are unusual due to their nature or infrequency, and which can significantly affect net income.

Inventory Method Change

A change in the accounting method used to value inventory, which can significantly affect a company's financial statements and tax liability.

LIFO

Last In, First Out; an inventory valuation method where the last items placed in inventory are the first ones considered sold.