Question 1

The concept of major versus nonmajor funds does not apply to permanent funds,as it does to governmental and proprietary funds.

Accepted Answer

A) True 
 B)False

Question 2

During the fiscal year ended December 31,2013,Glen City's general fund contributed $60 million to a defined benefit pension plan for city employees.On February 27,2014,the general fund made an additional $3 million contribution related to the 2013 pension contribution requirements.The actuarially determined contribution requirement for 2013 is $65 million.The amount of pension expenditure recognized by the general fund for 2013 should be:

Accepted Answer

A) $ 0 
B) $ 60 million 
C) $ 63 million 
D) $ 65 million 
A) $ 0 
B) $ 60 million 
C) $ 63 million 
D) $ 65 million

Question 3

Assets reported in a government's investment trust fund should include:

Accepted Answer

A) Only investments owned by external participants in the investment pool. 
B) Investments of both the sponsoring government and of external participants in the investment pool. 
C) Investments related to the sponsoring government's governmental funds and of external participants in the investment pool. 
D) Investments related to the sponsoring government's other fiduciary funds and of external participants in the investment pool. 
A) Only investments owned by external participants in the investment pool. 
B) Investments of both the sponsoring government and of external participants in the investment pool. 
C) Investments related to the sponsoring government's governmental funds and of external participants in the investment pool. 
D) Investments related to the sponsoring government's other fiduciary funds and of external participants in the investment pool.

Question 4

In previous years,Boze City had received a $400,000 gift of cash and investments.The donor had specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested.During the current year,the earnings from this gift were $24,000.The earnings from this gift should generally be considered revenue to which of the following funds?

Accepted Answer

A) Special revenue fund. 
B) Private-purpose trust fund. 
C) Agency fund. 
D) Permanent fund. 
A) Special revenue fund. 
B) Private-purpose trust fund. 
C) Agency fund. 
D) Permanent fund.

Question 5

On its year-end statement of financial position,the charity would report temporarily restricted net assets of:

Accepted Answer

A) $40,000. 
B) $ 0. 
C) $30,000. 
D) $1.04 million. 
A) $40,000. 
B) $ 0. 
C) $30,000. 
D) $1.04 million.

Question 6

On its year-end statement of activities,the charity would report interest revenues of:

Accepted Answer

A) $0 
B) $30,000 
C) $40,000 
D) None of the above. 
A) $0 
B) $30,000 
C) $40,000 
D) None of the above.

Question 7

Required disclosure by the general fund of a government related to its pension plan does NOT include which of the following?

Accepted Answer

A) The employer's funding policy. 
B) The components of the pension cost. 
C) The key assumptions used in determining the pension cost. 
D) The present value of the future benefits to be paid. 
A) The employer's funding policy. 
B) The components of the pension cost. 
C) The key assumptions used in determining the pension cost. 
D) The present value of the future benefits to be paid.

Question 8

Which of the following would NOT be accounted for in a fiduciary fund of a government?

Accepted Answer

A) Nonexpendable resources held for the benefit of other governments. 
B) Nonexpendable resources held for the benefit of the government holding the resources. 
C) Expendable resources held for the benefit of other governments. 
D) Funds held as an agent for other entities. 
A) Nonexpendable resources held for the benefit of other governments. 
B) Nonexpendable resources held for the benefit of the government holding the resources. 
C) Expendable resources held for the benefit of other governments. 
D) Funds held as an agent for other entities.

Question 9

Dale City Light & Water a proprietary fund)contributes to a defined benefit pension plan for its employees.During 2014,the city contributed $36 million to the pension plan.The city also made a $4 million contribution related to 2013.The actuarially determined contribution requirement for 2014 was $43 million.The amount of pension expense recognized by Dale City Light & Water for 2014 should be:

Accepted Answer

A) $ 0 
B) $ 36 million 
C) $ 40 million 
D) $ 43 million 
A) $ 0 
B) $ 36 million 
C) $ 40 million 
D) $ 43 million

Question 10

Fiduciary funds focus on current financial resources and use the full accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is NOT a criterion that an employer's annual required contribution must satisfy to be considered acceptable?

Accepted Answer

A) It must consist of the employer's normal cost plus a provision for amortizing the plan's unfunded actuarially accrued liability. 
B) Actual assumptions must be in accordance with standards of the Actuarial Standards Board. 
C) Actuarial value of pension plan assets must be based on market values on the financial statement date. 
D) Assumptions as to investment earnings should be based on long-term projections. 
A) It must consist of the employer's normal cost plus a provision for amortizing the plan's unfunded actuarially accrued liability. 
B) Actual assumptions must be in accordance with standards of the Actuarial Standards Board. 
C) Actuarial value of pension plan assets must be based on market values on the financial statement date. 
D) Assumptions as to investment earnings should be based on long-term projections.

Question 12

The funded status of a defined benefit pension plan is

Accepted Answer

A) The result of comparing the actuarial value of plan assets with the plan's actuarial accrued liability for benefits. 
B) The amount by which plan assets exceed benefits due to current retirees. 
C) Current-year contributions less amounts currently due but not paid to current retirees, 
D) The policy as to whether the plan is being financed on a pay-as-you-go cash)basis or through actuarially determined employer contributions. 
A) The result of comparing the actuarial value of plan assets with the plan's actuarial accrued liability for benefits. 
B) The amount by which plan assets exceed benefits due to current retirees. 
C) Current-year contributions less amounts currently due but not paid to current retirees, 
D) The policy as to whether the plan is being financed on a pay-as-you-go cash)basis or through actuarially determined employer contributions.

Question 13

GASB standards of accounting for other postemployment benefits OPEB)require that governments

Accepted Answer

A) Fund their OPEB benefits on an actuarially determined basis. 
B) Report actuarially determined required contributions as OPEB expense,regardless of whether the government actually makes the contributions. 
C) Report OPEB costs in accordance with the FASB's standards of accounting for OPEB. 
D) Only disclose an estimate of their OPEB liabilities. 
A) Fund their OPEB benefits on an actuarially determined basis. 
B) Report actuarially determined required contributions as OPEB expense,regardless of whether the government actually makes the contributions. 
C) Report OPEB costs in accordance with the FASB's standards of accounting for OPEB. 
D) Only disclose an estimate of their OPEB liabilities.

Question 14

A wealthy citizen provided in her will for a gift of cash and other assets to Balsa city.The will specified that the gift was to be kept intact and that the earnings from the gift were to be used to support public parks.At the time of the donation,the gift had a book value in the hands of the donor of $300,000 and a fair value of $500,000.When recording this gift the city would credit

Accepted Answer

A) Contributions revenues $500,000. 
B) Other financing sources-contributions $500,000. 
C) Contributions revenues $300,000. 
D) Other financing sources-contributions $300,000. 
A) Contributions revenues $500,000. 
B) Other financing sources-contributions $500,000. 
C) Contributions revenues $300,000. 
D) Other financing sources-contributions $300,000.

Question 15

Permanent funds are classified as

Accepted Answer

A) Governmental funds. 
B) Proprietary funds. 
C) Fiduciary funds. 
D) Trust funds. 
A) Governmental funds. 
B) Proprietary funds. 
C) Fiduciary funds. 
D) Trust funds.

Question 16

Lomond City receives a federal grant to assist in nutrition programs for its senior citizens.The city will select the contractors that will provide meals and approve the participants in the program.The proceeds of this grant should be accounted for in which of the following funds of the city?

Accepted Answer

A) A governmental fund. 
B) An enterprise fund. 
C) An agency fund. 
D) A private-purpose trust fund. 
A) A governmental fund. 
B) An enterprise fund. 
C) An agency fund. 
D) A private-purpose trust fund.

Question 17

What basis of accounting is used to account for the transactions of a government's permanent fund?

Accepted Answer

A) Full accrual basis of accounting. 
B) Modified accrual basis of accounting. 
C) Cash basis of accounting. 
D) Budgetary basis of accounting. 
A) Full accrual basis of accounting. 
B) Modified accrual basis of accounting. 
C) Cash basis of accounting. 
D) Budgetary basis of accounting.

Question 18

During the year,a state-owned university received a $5 million gift.The donor specified that the principal of the gift must be held intact for 3 years,but the earnings from the gift can be used to support technology improvements in the college of business.At the end of the 3 years,the donor together with the university president and the college dean will decide how the $5 million gift can be used.The university will report the gift in what type of fund?

Accepted Answer

A) Permanent fund. 
B) Private-purpose trust fund. 
C) Plant fund. 
D) Special revenue fund 
A) Permanent fund. 
B) Private-purpose trust fund. 
C) Plant fund. 
D) Special revenue fund

Question 19

During the current year the private-purpose trust fund will recognize,related to earnings:

Accepted Answer

A) $24,000 revenues. 
B) $20,000 revenues. 
C) $24,000 addition to net position. 
D) $20,000 addition to net position. 
A) $24,000 revenues. 
B) $20,000 revenues. 
C) $24,000 addition to net position. 
D) $20,000 addition to net position.

Question 20

The primary financial statements for a government-sponsored pension plan are:

Accepted Answer

A) Balance sheet and statement of activities. 
B) Balance sheet,statement of activities,and cash flows statement. 
C) Statement of fiduciary net assets and a statement of changes in fiduciary net assets 
D) Balance sheet,statement of activities,cash flows statement,and statement of funding progress. 
A) Balance sheet and statement of activities. 
B) Balance sheet,statement of activities,and cash flows statement. 
C) Statement of fiduciary net assets and a statement of changes in fiduciary net assets 
D) Balance sheet,statement of activities,cash flows statement,and statement of funding progress.

The concept of major versus nonmajor funds does not apply to permanent funds,as it does to governmental and proprietary funds.

Assets reported in a government's investment trust fund should include:

On its year-end statement of financial position,the charity would report temporarily restricted net assets of:

On its year-end statement of activities,the charity would report interest revenues of:

Required disclosure by the general fund of a government related to its pension plan does NOT include which of the following?

Which of the following would NOT be accounted for in a fiduciary fund of a government?

Fiduciary funds focus on current financial resources and use the full accrual basis of accounting.

Which of the following is NOT a criterion that an employer's annual required contribution must satisfy to be considered acceptable?

The funded status of a defined benefit pension plan is

GASB standards of accounting for other postemployment benefits OPEB)require that governments

Permanent funds are classified as

Lomond City receives a federal grant to assist in nutrition programs for its senior citizens.The city will select the contractors that will provide meals and approve the participants in the program.The proceeds of this grant should be accounted for in which of the following funds of the city?

What basis of accounting is used to account for the transactions of a government's permanent fund?

During the current year the private-purpose trust fund will recognize,related to earnings:

The primary financial statements for a government-sponsored pension plan are:

The Government and Not-For-Profit Environment

Fund Accounting

Issues of Budgeting and Control

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Business-Type Activities

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Auditing Governments and Not-For-Profit Organizations

Federal Government Accounting

Filters

Exam 10: Fiduciary Funds and Permanent Funds

The concept of major versus nonmajor funds does not apply to permanent funds,as it does to governmental and proprietary funds.

Assets reported in a government's investment trust fund should include:

On its year-end statement of financial position,the charity would report temporarily restricted net assets of:

On its year-end statement of activities,the charity would report interest revenues of:

Required disclosure by the general fund of a government related to its pension plan does NOT include which of the following?

Which of the following would NOT be accounted for in a fiduciary fund of a government?

Fiduciary funds focus on current financial resources and use the full accrual basis of accounting.

Which of the following is NOT a criterion that an employer's annual required contribution must satisfy to be considered acceptable?

The funded status of a defined benefit pension plan is

GASB standards of accounting for other postemployment benefits OPEB)require that governments

Permanent funds are classified as

Lomond City receives a federal grant to assist in nutrition programs for its senior citizens.The city will select the contractors that will provide meals and approve the participants in the program.The proceeds of this grant should be accounted for in which of the following funds of the city?

What basis of accounting is used to account for the transactions of a government's permanent fund?

During the current year the private-purpose trust fund will recognize,related to earnings:

The primary financial statements for a government-sponsored pension plan are:

The Government and Not-For-Profit Environment

Fund Accounting

Issues of Budgeting and Control

Recognizing Revenues in Governmental Funds

Recognizing Expenditures in Governmental Funds

Accounting for Capital Projects and Debt Service

Capital Assets and Investments in Marketable Securities

Long-Term Obligations

Business-Type Activities

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Auditing Governments and Not-For-Profit Organizations

Federal Government Accounting

Filters