Question 1

Governments are not required to incorporate proprietary fund budgets into the accounting system.

Accepted Answer

A) True 
 B)False

Question 2

"Cash flows from operating activities" include which of the following as inflows

Accepted Answer

A) Proceeds from short-term borrowing to finance operations. 
B) Receipts from property taxes levied to support operations of the activity. 
C) Grants from other governments to finance an operating deficit. 
D) Any cash receipt that does not meet the definition of investing,capital and related financing,or noncapital financing activities. 
A) Proceeds from short-term borrowing to finance operations. 
B) Receipts from property taxes levied to support operations of the activity. 
C) Grants from other governments to finance an operating deficit. 
D) Any cash receipt that does not meet the definition of investing,capital and related financing,or noncapital financing activities.

Question 3

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

Accepted Answer

A) Cash collection of receivables for sales of services. 
B) Grants for operating activities. 
C) Interest and dividends received. 
D) Purchases of investments. 
A) Cash collection of receivables for sales of services. 
B) Grants for operating activities. 
C) Interest and dividends received. 
D) Purchases of investments.

Question 4

The proprietary fund operating statement includes ALL changes in net position including capital contributions.

Accepted Answer

A) True 
 B)False

Question 5

The amounts reported in proprietary fund statements are generally the same as those reported in the government-wide statements because both sets of statements are on a full accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) Repayment of bonds issued to construct a new city hall building. 
B) Interest received on investments. 
C) Grant from the state to subsidize the mass transit system. 
D) Receipts from the sale of an old backhoe that had been used in general government activities. 
A) Repayment of bonds issued to construct a new city hall building. 
B) Interest received on investments. 
C) Grant from the state to subsidize the mass transit system. 
D) Receipts from the sale of an old backhoe that had been used in general government activities.

Question 7

Flora County issues $6 million of revenue bonds to finance construction of additional physical plant facilities for the county sewer system that is accounted for in an enterprise fund.The bond agreement requires that $0.5 million of the proceeds be invested in U.S.Treasury securities to be used to service the debt if revenues in a particular year are insufficient to do so.When it sells the bonds,the county debits restricted cash and credits revenue bonds payable.What additional entry,if any,is needed?

Accepted Answer

A) No additional entry is needed at this time. 
B) Debit restricted net position $0.5 million;Credit unrestricted net position $0.5 million. 
C) Debit unrestricted net position $0.5 million;Credit restricted net position $0.5 million. 
D) Debit unrestricted retained earnings $0.5 million;Credit restricted retained earnings $0.5 million. 
A) No additional entry is needed at this time. 
B) Debit restricted net position $0.5 million;Credit unrestricted net position $0.5 million. 
C) Debit unrestricted net position $0.5 million;Credit restricted net position $0.5 million. 
D) Debit unrestricted retained earnings $0.5 million;Credit restricted retained earnings $0.5 million.

Question 8

The costs of cleaning up toxic substances seeping out from an abandoned county dump into the town water supply may be accounted for in either a governmental fund or an enterprise fund.

Accepted Answer

A) True 
 B)False

Question 9

"Cash flows from investing activities" do NOT include which of the following as inflows

Accepted Answer

A) Receipts from the sale of marketable securities. 
B) Interest received on bonds held as short-term investments. 
C) Interest received on bonds held as long-term investments. 
D) Transfers to other funds. 
A) Receipts from the sale of marketable securities. 
B) Interest received on bonds held as short-term investments. 
C) Interest received on bonds held as long-term investments. 
D) Transfers to other funds.

Question 10

The amount the city's self-insurance fund can recognize as revenue 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 11

Governments are required to prepare a statement of cash flows for proprietary funds,but not for governmental funds.

Accepted Answer

A) True 
 B)False

Question 12

Governments may choose whether to account for internal service fund activities on an accrual basis or a modified accrual basis.

Accepted Answer

A) True 
 B)False

Question 13

The appropriate basis of accounting for the proprietary funds of a government is

Accepted Answer

A) Cash basis. 
B) Modified accrual. 
C) Full accrual. 
D) None of the above. 
A) Cash basis. 
B) Modified accrual. 
C) Full accrual. 
D) None of the above.

Question 14

Which of the following entities is required to use the direct method to report its cash flows?

Accepted Answer

A) City of Gaston Utility Fund. 
B) United Way. 
C) General Motors. 
D) Oak Grove Water Users Association. 
A) City of Gaston Utility Fund. 
B) United Way. 
C) General Motors. 
D) Oak Grove Water Users Association.

Governments are not required to incorporate proprietary fund budgets into the accounting system.

"Cash flows from operating activities" include which of the following as inflows

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

The proprietary fund operating statement includes ALL changes in net position including capital contributions.

The amounts reported in proprietary fund statements are generally the same as those reported in the government-wide statements because both sets of statements are on a full accrual basis of accounting.

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

The costs of cleaning up toxic substances seeping out from an abandoned county dump into the town water supply may be accounted for in either a governmental fund or an enterprise fund.

"Cash flows from investing activities" do NOT include which of the following as inflows

The amount the city's self-insurance fund can recognize as revenue is

Governments are required to prepare a statement of cash flows for proprietary funds,but not for governmental funds.

Governments may choose whether to account for internal service fund activities on an accrual basis or a modified accrual basis.

The appropriate basis of accounting for the proprietary funds of a government is

Which of the following entities is required to use the direct method to report its cash flows?

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

Governments are not required to incorporate proprietary fund budgets into the accounting system.

"Cash flows from operating activities" include which of the following as inflows

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

The proprietary fund operating statement includes ALL changes in net position including capital contributions.

The amounts reported in proprietary fund statements are generally the same as those reported in the government-wide statements because both sets of statements are on a full accrual basis of accounting.

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

The costs of cleaning up toxic substances seeping out from an abandoned county dump into the town water supply may be accounted for in either a governmental fund or an enterprise fund.

"Cash flows from investing activities" do NOT include which of the following as inflows

The amount the city's self-insurance fund can recognize as revenue is

Governments are required to prepare a statement of cash flows for proprietary funds,but not for governmental funds.

Governments may choose whether to account for internal service fund activities on an accrual basis or a modified accrual basis.

The appropriate basis of accounting for the proprietary funds of a government is

Which of the following entities is required to use the direct method to report its cash flows?

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