Question 1

Basis of accounting determines which of the following?

Accepted Answer

A) When transactions and events are recognized. 
B) What transactions and events will be reported. 
C) Where transactions and events will be reported. 
D) Why transactions and events will be reported. 
A) When transactions and events are recognized. 
B) What transactions and events will be reported. 
C) Where transactions and events will be reported. 
D) Why transactions and events will be reported. A

Question 2

General funds are established to account for resources legally restricted for specified purposes.

Accepted Answer

A) True 
 B)False  False

Question 3

For which of the following entities is fund accounting mandated for financial reporting?

Accepted Answer

A) American Hospital Association. 
B) City of New York. 
C) Grace Lutheran Church. 
D) United Way. 
A) American Hospital Association. 
B) City of New York. 
C) Grace Lutheran Church. 
D) United Way. B

Question 4

The basic financial statements of a city do NOT include which of the following?

Accepted Answer

A) Government-wide statement of net position. 
B) Government-wide statement of activities. 
C) Government-wide statement of cash flows. 
D) Separate balance sheets for governmental and proprietary funds. 
A) Government-wide statement of net position. 
B) Government-wide statement of activities. 
C) Government-wide statement of cash flows. 
D) Separate balance sheets for governmental and proprietary funds.

Question 5

During the current fiscal year,Mountain View City's water utility,an enterprise fund,rendered billings for water supplied to the general fund.Which of the following accounts should be debited by the general fund?

Accepted Answer

A) Transfer-out to enterprise fund 
B) Due to water utility enterprise fund 
C) Appropriations 
D) Expenditures 
A) Transfer-out to enterprise fund 
B) Due to water utility enterprise fund 
C) Appropriations 
D) Expenditures

Question 6

Under the GASB Statement No.34 reporting model,the focus of the government-wide statement of activities is on which of the following?

Accepted Answer

A) Program revenues and general revenues. 
B) Program revenues and expenses. 
C) Net income. 
D) The net cost of each of the government's main functions and programs. 
A) Program revenues and general revenues. 
B) Program revenues and expenses. 
C) Net income. 
D) The net cost of each of the government's main functions and programs.

Question 7

At first glance,the government-wide statement of activities bears little resemblance to the income statement of a business.

Accepted Answer

A) True 
 B)False

Question 8

Funds divide a government into functional departments.

Accepted Answer

A) True 
 B)False

Question 9

A not-for-profit entity's statement of net assets will NOT report which of the following?

Accepted Answer

A) Net assets invested in capital assets,net of related debt. 
B) Capital assets. 
C) Temporarily restricted net assets. 
D) Permanently restricted net assets. 
A) Net assets invested in capital assets,net of related debt. 
B) Capital assets. 
C) Temporarily restricted net assets. 
D) Permanently restricted net assets.

Question 10

Which of the following liabilities would NOT be found in the general fund balance sheet of the City of Marmaduke?

Accepted Answer

A) Accounts payable. 
B) Due to special revenue fund. 
C) Deferred revenue. 
D) Bonds payable,due in 5 years. 
A) Accounts payable. 
B) Due to special revenue fund. 
C) Deferred revenue. 
D) Bonds payable,due in 5 years.

Question 11

Which of the following sections is NOT required in the comprehensive annual financial report of a city?

Accepted Answer

A) Financial section. 
B) Introductory section. 
C) Statistical section. 
D) Historical section. 
A) Financial section. 
B) Introductory section. 
C) Statistical section. 
D) Historical section.

Question 12

The basis of accounting determines when transactions and events are recognized.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following funds is a proprietary fund?

Accepted Answer

A) Internal service fund. 
B) Special revenue fund. 
C) Capital projects fund. 
D) Permanent fund. 
A) Internal service fund. 
B) Special revenue fund. 
C) Capital projects fund. 
D) Permanent fund.

Question 14

Fiduciary activities should be reported in fund statements,but should be excluded from the government-wide statements.

Accepted Answer

A) True 
 B)False

Question 15

The state collects a gasoline tax that must be used to support highway construction and maintenance.The gasoline tax revenue should be accounted for in which of the following funds?

Accepted Answer

A) General fund. 
B) Special revenue fund. 
C) Debt service fund. 
D) Internal service fund. 
A) General fund. 
B) Special revenue fund. 
C) Debt service fund. 
D) Internal service fund.

Question 16

Which of the following accounts would you least expect to see in a debt service fund?

Accepted Answer

A) Principal payments. 
B) Interest charges. 
C) Interest earned. 
D) Outstanding balance of the debt being serviced. 
A) Principal payments. 
B) Interest charges. 
C) Interest earned. 
D) Outstanding balance of the debt being serviced.

Question 17

The focus of the government-wide statement of activities of the City of West Hills is on which of the following?

Accepted Answer

A) Determining the total expenses by natural classification. 
B) Determining the total expenses by function. 
C) Determining the total revenues by function. 
D) Determining the net cost of functions. 
A) Determining the total expenses by natural classification. 
B) Determining the total expenses by function. 
C) Determining the total revenues by function. 
D) Determining the net cost of functions.

Question 18

When a governmental entity adopts a basis of accounting other than full accrual and a measurement focus that excludes long-lived assets and liabilities in its governmental fund types:

Accepted Answer

A) It is in violation of the law. 
B) It is in violation of GAAP. 
C) It has reported in accordance with GAAP for governmental fund financial statements. 
D) It has the ability to better measure the results of operations. 
A) It is in violation of the law. 
B) It is in violation of GAAP. 
C) It has reported in accordance with GAAP for governmental fund financial statements. 
D) It has the ability to better measure the results of operations.

Question 19

When a fax machine purchased by a governmental entity is received,it should be recorded in the general fund as an)

Accepted Answer

A) Expense 
B) Encumbrance 
C) Expenditure 
D) Capital asset 
A) Expense 
B) Encumbrance 
C) Expenditure 
D) Capital asset

Question 20

Which of the following statements is NOT required in the financial reports of a not-for-profit entity?

Accepted Answer

A) Statement of net position. 
B) Statement of restricted funds. 
C) Statement of activities. 
D) Statement of cash flows. 
A) Statement of net position. 
B) Statement of restricted funds. 
C) Statement of activities. 
D) Statement of cash flows.

Basis of accounting determines which of the following?

General funds are established to account for resources legally restricted for specified purposes.

For which of the following entities is fund accounting mandated for financial reporting?

The basic financial statements of a city do NOT include which of the following?

During the current fiscal year,Mountain View City's water utility,an enterprise fund,rendered billings for water supplied to the general fund.Which of the following accounts should be debited by the general fund?

Under the GASB Statement No.34 reporting model,the focus of the government-wide statement of activities is on which of the following?

At first glance,the government-wide statement of activities bears little resemblance to the income statement of a business.

Funds divide a government into functional departments.

A not-for-profit entity's statement of net assets will NOT report which of the following?

Which of the following liabilities would NOT be found in the general fund balance sheet of the City of Marmaduke?

Which of the following sections is NOT required in the comprehensive annual financial report of a city?

The basis of accounting determines when transactions and events are recognized.

Which of the following funds is a proprietary fund?

Fiduciary activities should be reported in fund statements,but should be excluded from the government-wide statements.

The state collects a gasoline tax that must be used to support highway construction and maintenance.The gasoline tax revenue should be accounted for in which of the following funds?

Which of the following accounts would you least expect to see in a debt service fund?

The focus of the government-wide statement of activities of the City of West Hills is on which of the following?

When a governmental entity adopts a basis of accounting other than full accrual and a measurement focus that excludes long-lived assets and liabilities in its governmental fund types:

When a fax machine purchased by a governmental entity is received,it should be recorded in the general fund as an)

Which of the following statements is NOT required in the financial reports of a not-for-profit entity?

The Government and Not-For-Profit Environment

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

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 2: Fund Accounting

Basis of accounting determines which of the following?

General funds are established to account for resources legally restricted for specified purposes.

For which of the following entities is fund accounting mandated for financial reporting?

The basic financial statements of a city do NOT include which of the following?

During the current fiscal year,Mountain View City's water utility,an enterprise fund,rendered billings for water supplied to the general fund.Which of the following accounts should be debited by the general fund?

Under the GASB Statement No.34 reporting model,the focus of the government-wide statement of activities is on which of the following?

At first glance,the government-wide statement of activities bears little resemblance to the income statement of a business.

Funds divide a government into functional departments.

A not-for-profit entity's statement of net assets will NOT report which of the following?

Which of the following liabilities would NOT be found in the general fund balance sheet of the City of Marmaduke?

Which of the following sections is NOT required in the comprehensive annual financial report of a city?

The basis of accounting determines when transactions and events are recognized.

Which of the following funds is a proprietary fund?

Fiduciary activities should be reported in fund statements,but should be excluded from the government-wide statements.

The state collects a gasoline tax that must be used to support highway construction and maintenance.The gasoline tax revenue should be accounted for in which of the following funds?

Which of the following accounts would you least expect to see in a debt service fund?

The focus of the government-wide statement of activities of the City of West Hills is on which of the following?

When a governmental entity adopts a basis of accounting other than full accrual and a measurement focus that excludes long-lived assets and liabilities in its governmental fund types:

When a fax machine purchased by a governmental entity is received,it should be recorded in the general fund as an)

Which of the following statements is NOT required in the financial reports of a not-for-profit entity?

The Government and Not-For-Profit Environment

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

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