Question 1

General capital assets are distinguished from the capital assets of proprietary funds and fiduciary funds.

Accepted Answer

A) True 
 B)False

Question 2

Governments are prohibited from entering into reverse repurchase agreements.

Accepted Answer

A) True 
 B)False

Question 3

Fair value accounting is required for investments in:

Accepted Answer

A) External investment pools 
B) Open-end mutual funds 
C) Bonds and other debt securities 
D) All of the above 
A) External investment pools 
B) Open-end mutual funds 
C) Bonds and other debt securities 
D) All of the above

Question 4

Concentration of credit risk is

Accepted Answer

A) The risk that an issuer or other counterparty to an investment will not fulfill its obligations. 
B) The risk of loss attributed to participating in a state investment pool. 
C) The risk of loss attributed to the magnitude of a government's investment in a single issuer. 
D) The risk that changes in exchange rates with blocs of countries that have pooled their currencies will adversely affect the fair value of an investment. 
A) The risk that an issuer or other counterparty to an investment will not fulfill its obligations. 
B) The risk of loss attributed to participating in a state investment pool. 
C) The risk of loss attributed to the magnitude of a government's investment in a single issuer. 
D) The risk that changes in exchange rates with blocs of countries that have pooled their currencies will adversely affect the fair value of an investment.

Question 5

Hilltop School District receives a donation of ten computers from Computer Hut,a local computer firm.The cost to Computer Hut of each computer is $2,500.The retail value of each computer is $3,000.Assuming that the district maintains its books and records in a manner that facilitates the preparation of the fund financial statements,what is the appropriate entry in the general fund to record this donation?

Accepted Answer

A) Debit Computer equipment $25,000;Credit Donation revenue $25,000. 
B) Debit Computer equipment $30,000;Credit Other financing sources-donation $30,000. 
C) Debit Computer equipment $30,000;Credit Donation revenue $30,000. 
D) No entry.The computers are not financial resources. 
A) Debit Computer equipment $25,000;Credit Donation revenue $25,000. 
B) Debit Computer equipment $30,000;Credit Other financing sources-donation $30,000. 
C) Debit Computer equipment $30,000;Credit Donation revenue $30,000. 
D) No entry.The computers are not financial resources.

Question 6

At the government-wide level,governments must depreciate inexhaustible assets,such as land,works of art,or historical treasures.

Accepted Answer

A) True 
 B)False

Question 7

Most infrastructure assets are the responsibility of the federal government,not state and local governments.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is NOT a benefit to cities of participating in their state's investment pool?

Accepted Answer

A) Lower trading costs. 
B) Concentration on the latest innovative investment instruments. 
C) Shared costs of receiving expert investment advice. 
D) Greater opportunity to diversify. 
A) Lower trading costs. 
B) Concentration on the latest innovative investment instruments. 
C) Shared costs of receiving expert investment advice. 
D) Greater opportunity to diversify.

Question 9

The objectives of financial reporting for capital assets should be to provide information

Accepted Answer

A) About a governmental entity's physical resources. 
B) That can be used to assess the service potential of a governmental entity's physical resources. 
C) To help users assess a government's long- and short-term capital needs. 
D) All of the above. 
A) About a governmental entity's physical resources. 
B) That can be used to assess the service potential of a governmental entity's physical resources. 
C) To help users assess a government's long- and short-term capital needs. 
D) All of the above.

Question 10

What amount of gain/loss should be reported in the government-wide financial statements?

Accepted Answer

A) $0. 
B) $3,000 gain. 
C) $3,000 loss. 
D) $7,000 gain. 
A) $0. 
B) $3,000 gain. 
C) $3,000 loss. 
D) $7,000 gain.

Question 11

General capital assets are not reported in governmental funds because

Accepted Answer

A) The measurement focus of governmental funds is on current financial resources. 
B) They are not used to used generate revenues. 
C) The basis of accounting is accrual. 
D) None of the above. 
A) The measurement focus of governmental funds is on current financial resources. 
B) They are not used to used generate revenues. 
C) The basis of accounting is accrual. 
D) None of the above.

General capital assets are distinguished from the capital assets of proprietary funds and fiduciary funds.

Governments are prohibited from entering into reverse repurchase agreements.

Fair value accounting is required for investments in:

Concentration of credit risk is

At the government-wide level,governments must depreciate inexhaustible assets,such as land,works of art,or historical treasures.

Most infrastructure assets are the responsibility of the federal government,not state and local governments.

Which of the following is NOT a benefit to cities of participating in their state's investment pool?

The objectives of financial reporting for capital assets should be to provide information

What amount of gain/loss should be reported in the government-wide financial statements?

General capital assets are not reported in governmental funds because

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

Long-Term Obligations

Business-Type Activities

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 7: Capital Assets and Investments in Marketable Securities

General capital assets are distinguished from the capital assets of proprietary funds and fiduciary funds.

Governments are prohibited from entering into reverse repurchase agreements.

Fair value accounting is required for investments in:

Concentration of credit risk is

At the government-wide level,governments must depreciate inexhaustible assets,such as land,works of art,or historical treasures.

Most infrastructure assets are the responsibility of the federal government,not state and local governments.

Which of the following is NOT a benefit to cities of participating in their state's investment pool?

The objectives of financial reporting for capital assets should be to provide information

What amount of gain/loss should be reported in the government-wide financial statements?

General capital assets are not reported in governmental funds because

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

Long-Term Obligations

Business-Type Activities

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