Question 1

"Cash flows from noncapital financing activities" include which of the following as outflows

Accepted Answer

A) Repayment of bonds issued to finance construction of city hall. 
B) Deposits into investment pools. 
C) Loans to another fund of the same government . 
D) Grants made to other governments to support operating activities. 
A) Repayment of bonds issued to finance construction of city hall. 
B) Deposits into investment pools. 
C) Loans to another fund of the same government . 
D) Grants made to other governments to support operating activities. C

Question 2

Cougar City issued $2 million in general obligation bonds to acquire a fleet of vehicles for the Central Motor Pool Internal Service Fund.At the date of issue,the appropriate entry in the internal service fund is a $ 2 million debit to cash and a $2 million credit to

Accepted Answer

A) Bonds payable. 
B) Capital contribution revenues). 
C) Capital contributed revenues)AND show $2 million as an addition to the schedule of changes in long-term obligations. 
D) No entry in the internal service fund.Show $2 million as an addition to the schedule of changes in long-term obligations. 
A) Bonds payable. 
B) Capital contribution revenues). 
C) Capital contributed revenues)AND show $2 million as an addition to the schedule of changes in long-term obligations. 
D) No entry in the internal service fund.Show $2 million as an addition to the schedule of changes in long-term obligations. A

Question 3

On the fund financial statements,internal service activities should be presented

Accepted Answer

A) In the propriety fund statements,net of interfund eliminations. 
B) In the governmental fund statements,net of interfund eliminations. 
C) In the proprietary fund statements,without any interfund eliminations. 
D) In the governmental fund statements,without any interfund eliminations. 
A) In the propriety fund statements,net of interfund eliminations. 
B) In the governmental fund statements,net of interfund eliminations. 
C) In the proprietary fund statements,without any interfund eliminations. 
D) In the governmental fund statements,without any interfund eliminations. C

Question 4

The appropriate entry in the general fund to account for this transfer is a credit to cash for $500,000 and a debit for $500,000 to

Accepted Answer

A) Due from internal service fund. 
B) Nonreciprocal transfer-out. 
C) Expenditures. 
D) Investment in internal service fund. 
A) Due from internal service fund. 
B) Nonreciprocal transfer-out. 
C) Expenditures. 
D) Investment in internal service fund.

Question 5

In accounting for closure and postclosure landfill costs in an enterprise fund,a government does not necessarily have to "fund" the costs during the landfill's useful life;it merely has to report both an expense and a liability for them.

Accepted Answer

A) True 
 B)False

Question 6

GASB standards require that governments advance fund landfill closure and postclosure costs on an actuarial basis similar to the advance funding of pension plans.

Accepted Answer

A) True 
 B)False

Question 7

"Cash flows from investing activities" include which of the following as outflows

Accepted Answer

A) Repayments of short-term borrowing to finance operations. 
B) Interest received on investments. 
C) Cash transfers to other funds. 
D) Purchase of short-term investments. 
A) Repayments of short-term borrowing to finance operations. 
B) Interest received on investments. 
C) Cash transfers to other funds. 
D) Purchase of short-term investments.

Question 8

In both the fund statements and the government-wide statements,business-type activities and internal service funds are on a full accrual basis,and their measurement focus is on all economic resources.

Accepted Answer

A) True 
 B)False

Question 9

Over the long run,internal service funds are intended to generate sufficient revenues to cover the

Accepted Answer

A) Full costs of providing services. 
B) Full costs of providing services and earn a profit. 
C) Current operating costs of providing services. 
D) Current operating costs of providing services and earn an operating profit. 
A) Full costs of providing services. 
B) Full costs of providing services and earn a profit. 
C) Current operating costs of providing services. 
D) Current operating costs of providing services and earn an operating profit.

Question 10

When a government enterprise fund has restricted assets on its statement of net position,which of the following is a true statement?

Accepted Answer

A) The total of the restricted assets in the asset section will be equal to the "restricted net position" amount in the equity section. 
B) The total of the restricted assets will be offset by a liability of an equal amount. 
C) The total of the restricted assets less related liabilities will be equal to the "restricted net assets" amount in the equity section. 
D) None of the above statements is true. 
A) The total of the restricted assets in the asset section will be equal to the "restricted net position" amount in the equity section. 
B) The total of the restricted assets will be offset by a liability of an equal amount. 
C) The total of the restricted assets less related liabilities will be equal to the "restricted net assets" amount in the equity section. 
D) None of the above statements is true.

Question 11

Internal service funds should be consolidated with other governmental funds in the government-wide statements.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is a key reason for using business-type accounting to account for proprietary fund activities?

Accepted Answer

A) The modified accrual basis of accounting captures all the resources and obligations associated with an activity. 
B) Depreciation is not recognized in business-type accounting in governments and surveys of statement users indicate that information on depreciation is not of high priority to government decision makers. 
C) The measurement focus on all economic resources is more consistent with the GASB's objectives that financial reporting should provide information to help determine whether current-year revenues were sufficient to pay for current-year services. 
D) Business-type accounting facilitates comparisons with governmental activities. 
A) The modified accrual basis of accounting captures all the resources and obligations associated with an activity. 
B) Depreciation is not recognized in business-type accounting in governments and surveys of statement users indicate that information on depreciation is not of high priority to government decision makers. 
C) The measurement focus on all economic resources is more consistent with the GASB's objectives that financial reporting should provide information to help determine whether current-year revenues were sufficient to pay for current-year services. 
D) Business-type accounting facilitates comparisons with governmental activities.

Question 13

The appropriate entry in the internal service fund is a debit to cash for $500,000 and a credit for $500,000 to

Accepted Answer

A) Due to general fund. 
B) Nonreciprocal transfer-in. 
C) Capital contribution Revenues). 
D) Investment provided by the general fund. 
A) Due to general fund. 
B) Nonreciprocal transfer-in. 
C) Capital contribution Revenues). 
D) Investment provided by the general fund.

Question 14

The amount the city's general fund can recognize as an expenditure is

Accepted Answer

A) $620,000. 
B) $600,000. 
C) $540,000. 
D) $500,000. 
A) $620,000. 
B) $600,000. 
C) $540,000. 
D) $500,000.

Question 15

A proprietary fund of a government has some donor-restricted assets.Which of the following best describes where and how those assets will generally be displayed in the fund's financial statements?

Accepted Answer

A) In a separate restricted asset category on the statement of net position. 
B) Intermingled with other assets on the statement of net position. 
C) Intermingled with other assets on the statement of net position,but footnoted. 
D) In a separate restricted fund. 
A) In a separate restricted asset category on the statement of net position. 
B) Intermingled with other assets on the statement of net position. 
C) Intermingled with other assets on the statement of net position,but footnoted. 
D) In a separate restricted fund.

Question 16

A government reports the utility services it provides to citizens in a proprietary fund.Which accounting standards must the proprietary fund apply?

Accepted Answer

A) All FASB pronouncements,unless a FASB pronouncement conflicts with or contradicts a GASB pronouncement. 
B) All FASB pronouncements issued prior to November 30,1989,as well as any post-November 30,1989 pronouncements specifically adopted by GASB. 
C) All GASB pronouncements. 
D) All FASB and AICPA standards incorporated into GASB Statement No.62,as well as any FASB pronouncements issued after November 30,1989 that have been specifically adopted by the GASB. 
A) All FASB pronouncements,unless a FASB pronouncement conflicts with or contradicts a GASB pronouncement. 
B) All FASB pronouncements issued prior to November 30,1989,as well as any post-November 30,1989 pronouncements specifically adopted by GASB. 
C) All GASB pronouncements. 
D) All FASB and AICPA standards incorporated into GASB Statement No.62,as well as any FASB pronouncements issued after November 30,1989 that have been specifically adopted by the GASB.

Question 17

"Cash flows from capital and related financing activities" include which of the following as cash outflows

Accepted Answer

A) Grants to other governments for operating activities. 
B) Grants to other governments for capital asset acquisitions. 
C) Payments for services performed by other funds. 
D) Purchases of capital assets. 
A) Grants to other governments for operating activities. 
B) Grants to other governments for capital asset acquisitions. 
C) Payments for services performed by other funds. 
D) Purchases of capital assets.

Question 18

Which of the following is NOT a budget typically prepared for an activity accounted for in a proprietary fund?

Accepted Answer

A) Appropriation budget. 
B) Cash budget. 
C) Capital budget. 
D) Flexible budget. 
A) Appropriation budget. 
B) Cash budget. 
C) Capital budget. 
D) Flexible budget.

Question 19

Which of the following is NOT true about internal service funds as reported in the fund financial statements?

Accepted Answer

A) Costs reported by internal service funds are reported twice within the same set of financial statements. 
B) Billing rates must be set to cover the full cost of providing the goods or services. 
C) Depreciation can be charged to governmental funds through the billing rates established by the internal service fund. 
D) Deficits or surpluses in the general fund can be transferred to the internal service fund by adjusting the billing rates. 
A) Costs reported by internal service funds are reported twice within the same set of financial statements. 
B) Billing rates must be set to cover the full cost of providing the goods or services. 
C) Depreciation can be charged to governmental funds through the billing rates established by the internal service fund. 
D) Deficits or surpluses in the general fund can be transferred to the internal service fund by adjusting the billing rates.

Question 20

Which of the following is a valid argument for separate accounting principles for proprietary activities?

Accepted Answer

A) Two separate measurement focuses and bases for accounting within the same set of financial statements are confusing. 
B) There are no clear-cut distinctions between business and non-business activities. 
C) The measurement focus on all economic resources is more consistent with the GASB's objectives that financial reporting should provide information to help determine whether current-year revenues were sufficient to pay for current-year services. 
D) Surveys of statement users indicate that information on depreciation is not of high priority to government decision makers. 
A) Two separate measurement focuses and bases for accounting within the same set of financial statements are confusing. 
B) There are no clear-cut distinctions between business and non-business activities. 
C) The measurement focus on all economic resources is more consistent with the GASB's objectives that financial reporting should provide information to help determine whether current-year revenues were sufficient to pay for current-year services. 
D) Surveys of statement users indicate that information on depreciation is not of high priority to government decision makers.

"Cash flows from noncapital financing activities" include which of the following as outflows

Cougar City issued $2 million in general obligation bonds to acquire a fleet of vehicles for the Central Motor Pool Internal Service Fund.At the date of issue,the appropriate entry in the internal service fund is a $ 2 million debit to cash and a $2 million credit to

On the fund financial statements,internal service activities should be presented

The appropriate entry in the general fund to account for this transfer is a credit to cash for $500,000 and a debit for $500,000 to

In accounting for closure and postclosure landfill costs in an enterprise fund,a government does not necessarily have to "fund" the costs during the landfill's useful life;it merely has to report both an expense and a liability for them.

GASB standards require that governments advance fund landfill closure and postclosure costs on an actuarial basis similar to the advance funding of pension plans.

"Cash flows from investing activities" include which of the following as outflows

In both the fund statements and the government-wide statements,business-type activities and internal service funds are on a full accrual basis,and their measurement focus is on all economic resources.

Over the long run,internal service funds are intended to generate sufficient revenues to cover the

When a government enterprise fund has restricted assets on its statement of net position,which of the following is a true statement?

Internal service funds should be consolidated with other governmental funds in the government-wide statements.

Which of the following is a key reason for using business-type accounting to account for proprietary fund activities?

The appropriate entry in the internal service fund is a debit to cash for $500,000 and a credit for $500,000 to

The amount the city's general fund can recognize as an expenditure is

A proprietary fund of a government has some donor-restricted assets.Which of the following best describes where and how those assets will generally be displayed in the fund's financial statements?

A government reports the utility services it provides to citizens in a proprietary fund.Which accounting standards must the proprietary fund apply?

"Cash flows from capital and related financing activities" include which of the following as cash outflows

Which of the following is NOT a budget typically prepared for an activity accounted for in a proprietary fund?

Which of the following is NOT true about internal service funds as reported in the fund financial statements?

Which of the following is a valid argument for separate accounting principles for proprietary activities?

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

Fiduciary Funds and Permanent Funds

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 9: Business-Type Activities

"Cash flows from noncapital financing activities" include which of the following as outflows

Cougar City issued $2 million in general obligation bonds to acquire a fleet of vehicles for the Central Motor Pool Internal Service Fund.At the date of issue,the appropriate entry in the internal service fund is a $ 2 million debit to cash and a $2 million credit to

On the fund financial statements,internal service activities should be presented

The appropriate entry in the general fund to account for this transfer is a credit to cash for $500,000 and a debit for $500,000 to

In accounting for closure and postclosure landfill costs in an enterprise fund,a government does not necessarily have to "fund" the costs during the landfill's useful life;it merely has to report both an expense and a liability for them.

GASB standards require that governments advance fund landfill closure and postclosure costs on an actuarial basis similar to the advance funding of pension plans.

"Cash flows from investing activities" include which of the following as outflows

In both the fund statements and the government-wide statements,business-type activities and internal service funds are on a full accrual basis,and their measurement focus is on all economic resources.

Over the long run,internal service funds are intended to generate sufficient revenues to cover the

When a government enterprise fund has restricted assets on its statement of net position,which of the following is a true statement?

Internal service funds should be consolidated with other governmental funds in the government-wide statements.

Which of the following is a key reason for using business-type accounting to account for proprietary fund activities?

The appropriate entry in the internal service fund is a debit to cash for $500,000 and a credit for $500,000 to

The amount the city's general fund can recognize as an expenditure is

A proprietary fund of a government has some donor-restricted assets.Which of the following best describes where and how those assets will generally be displayed in the fund's financial statements?

A government reports the utility services it provides to citizens in a proprietary fund.Which accounting standards must the proprietary fund apply?

"Cash flows from capital and related financing activities" include which of the following as cash outflows

Which of the following is NOT a budget typically prepared for an activity accounted for in a proprietary fund?

Which of the following is NOT true about internal service funds as reported in the fund financial statements?

Which of the following is a valid argument for separate accounting principles for proprietary activities?

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

Fiduciary Funds and Permanent Funds

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