Question 1

What is the primary reason that governmental entities use fund accounting?

Accepted Answer

A) Fund accounting is required by law. 
B) Fund accounting is required by GAAP. 
C) Fund accounting promotes control and accountability over restricted resources. 
D) Fund accounting promotes better control over operating activities. 
A) Fund accounting is required by law. 
B) Fund accounting is required by GAAP. 
C) Fund accounting promotes control and accountability over restricted resources. 
D) Fund accounting promotes better control over operating activities.

Question 2

A city receives a donation from a citizen who specifies that the principal must be invested and the earnings must be used to support operations of a city-owned recreational facility.The principal of this gift should be accounted for in which of the following funds?

Accepted Answer

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

Question 3

The City of San Jose built a new city hall and financed construction by issuing bonds due in installments over the next 30 years.The bond principal and interest will be paid by a special tax levied on property in the city.The revenue received from this special tax should be accounted for in which of the following funds?

Accepted Answer

A) General fund. 
B) Internal service fund. 
C) Capital projects fund. 
D) Debt service fund. 
A) General fund. 
B) Internal service fund. 
C) Capital projects fund. 
D) Debt service fund.

Question 4

Which of the following funds of Chessie City would be consolidated to form the governmental activities column in the city's government-wide financial statements?

Accepted Answer

A) General fund,special revenue fund,and agency fund. 
B) General fund,debt service fund,and capital projects fund. 
C) General fund,enterprise fund,and fiduciary fund. 
D) Enterprise fund and internal service fund. 
A) General fund,special revenue fund,and agency fund. 
B) General fund,debt service fund,and capital projects fund. 
C) General fund,enterprise fund,and fiduciary fund. 
D) Enterprise fund and internal service fund.

Question 5

The accounting equation applied by state and local governments is

Accepted Answer

A) Assets + deferred inflows of resources - liabilities = fund balance 
B) Assets + deferred outflows of resources - liabilities - deferred inflows of resources = fund balance 
C) Assets + deferred inflows of resources = liabilities + deferred outflows of resources + fund balance 
D) Assets - deferred outflows of resources - liabilities + deferred inflows of resources = fund balance 
A) Assets + deferred inflows of resources - liabilities = fund balance 
B) Assets + deferred outflows of resources - liabilities - deferred inflows of resources = fund balance 
C) Assets + deferred inflows of resources = liabilities + deferred outflows of resources + fund balance 
D) Assets - deferred outflows of resources - liabilities + deferred inflows of resources = fund balance

Question 6

Wigmore City receives a donation of $10 million from a wealthy citizen who stipulates that the funds be used to acquire and install park benches in the city's Veterans Park.The city should report the donation as an increase in

Accepted Answer

A) Unassigned fund balance 
B) Assigned fund balance 
C) Committed fund balance 
D) Restricted fund balance 
A) Unassigned fund balance 
B) Assigned fund balance 
C) Committed fund balance 
D) Restricted fund balance

Question 7

To fulfill the printing needs of its various departments and agencies,the City has established a Central Print Shop,which bills the various departments and agencies of the city for printing services rendered.The Central Print Shop should be accounted for in which of the following funds.

Accepted Answer

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

Question 8

Fiduciary activities only benefit parties other than the government itself.

Accepted Answer

A) True 
 B)False

Question 9

A government may report some of its funds on a full accrual basis.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following funds is a governmental fund?

Accepted Answer

A) Enterprise fund. 
B) Debt service fund. 
C) Internal service fund. 
D) Agency fund. 
A) Enterprise fund. 
B) Debt service fund. 
C) Internal service fund. 
D) Agency fund.

Question 11

The Financial Accounting Standards Board requires all nongovernmental not-for-profit entities to use fund accounting.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following activities conducted by a city-owned junior college should be accounted for in an agency fund?

Accepted Answer

A) Receipt of tuition payments. 
B) Receipt of revenues belonging to the student accounting club. 
C) Receipt of state monies appropriated for general operations. 
D) Receipt of donations in support of the university's athletic program. 
A) Receipt of tuition payments. 
B) Receipt of revenues belonging to the student accounting club. 
C) Receipt of state monies appropriated for general operations. 
D) Receipt of donations in support of the university's athletic program.

Question 13

Which fund type would all governments normally include in their fund financial statements?

Accepted Answer

A) Capital projects funds 
B) Special revenue funds 
C) General fund 
D) Fiduciary funds 
A) Capital projects funds 
B) Special revenue funds 
C) General fund 
D) Fiduciary funds

Question 14

Riverside Golf Course is a city-owned golf course that collects greens fees in amounts sufficient to cover its expenses.Riverside Golf Course should be accounted for in which of the following funds?

Accepted Answer

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

Question 15

Under the GASB Statement No.34 reporting model,which of the following is required?

Accepted Answer

A) Only one set of financial statements,prepared on the full accrual basis of accounting. 
B) Only one set of financial statements,prepared on the modified accrual basis of accounting. 
C) Two sets of financial statements.One set views the government as a collection of separate funds and uses the current financial resources measurement focus and modified accrual basis of accounting for governmental funds.The other set views the government as a whole by combining all governmental activities in one column and all business-type activities in another column and uses the full accrual basis of accounting for both columns. 
D) Two sets of financial statements.One set views the government as a whole and uses the current financial resources measurement focus and modified accrual basis of accounting.The other set views the government by function,combines all governmental activities in one column and all business-type activities in another column,and uses the full accrual basis of accounting for both columns. 
A) Only one set of financial statements,prepared on the full accrual basis of accounting. 
B) Only one set of financial statements,prepared on the modified accrual basis of accounting. 
C) Two sets of financial statements.One set views the government as a collection of separate funds and uses the current financial resources measurement focus and modified accrual basis of accounting for governmental funds.The other set views the government as a whole by combining all governmental activities in one column and all business-type activities in another column and uses the full accrual basis of accounting for both columns. 
D) Two sets of financial statements.One set views the government as a whole and uses the current financial resources measurement focus and modified accrual basis of accounting.The other set views the government by function,combines all governmental activities in one column and all business-type activities in another column,and uses the full accrual basis of accounting for both columns.

Question 16

Which of the following is NOT included in the financial section of a comprehensive annual financial report?

Accepted Answer

A) Required supplementary information 
B) Letter of transmittal 
C) Financial statements 
D) Notes to the statements 
A) Required supplementary information 
B) Letter of transmittal 
C) Financial statements 
D) Notes to the statements

Question 17

In accounting for costs incurred on a major construction project in a capital projects fund,the construction outlays are reported as expenditures,not capital assets.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following transactions should the City of Highland account for in a trust fund?

Accepted Answer

A) General fund contributions received by the city pension plan. 
B) Greens fees received from golfers at the city-owned golf course. 
C) Grants received from the Federal government to purchase buses to be used for public transit. 
D) Proceeds of bonds issued to construct a new city hall building. 
A) General fund contributions received by the city pension plan. 
B) Greens fees received from golfers at the city-owned golf course. 
C) Grants received from the Federal government to purchase buses to be used for public transit. 
D) Proceeds of bonds issued to construct a new city hall building.

Question 19

Which of the following funds is a fiduciary fund?

Accepted Answer

A) Permanent fund. 
B) Agency fund. 
C) Capital projects fund. 
D) Debt service fund. 
A) Permanent fund. 
B) Agency fund. 
C) Capital projects fund. 
D) Debt service fund.

Question 20

A fund is

Accepted Answer

A) A separate legal entity. 
B) A separate fiscal and accounting entity. 
C) A separate self-balancing set of accounts for inventory purposes. 
D) None of the above. 
A) A separate legal entity. 
B) A separate fiscal and accounting entity. 
C) A separate self-balancing set of accounts for inventory purposes. 
D) None of the above.

What is the primary reason that governmental entities use fund accounting?

A city receives a donation from a citizen who specifies that the principal must be invested and the earnings must be used to support operations of a city-owned recreational facility.The principal of this gift should be accounted for in which of the following funds?

Which of the following funds of Chessie City would be consolidated to form the governmental activities column in the city's government-wide financial statements?

The accounting equation applied by state and local governments is

Wigmore City receives a donation of $10 million from a wealthy citizen who stipulates that the funds be used to acquire and install park benches in the city's Veterans Park.The city should report the donation as an increase in

To fulfill the printing needs of its various departments and agencies,the City has established a Central Print Shop,which bills the various departments and agencies of the city for printing services rendered.The Central Print Shop should be accounted for in which of the following funds.

Fiduciary activities only benefit parties other than the government itself.

A government may report some of its funds on a full accrual basis.

Which of the following funds is a governmental fund?

The Financial Accounting Standards Board requires all nongovernmental not-for-profit entities to use fund accounting.

Which of the following activities conducted by a city-owned junior college should be accounted for in an agency fund?

Which fund type would all governments normally include in their fund financial statements?

Riverside Golf Course is a city-owned golf course that collects greens fees in amounts sufficient to cover its expenses.Riverside Golf Course should be accounted for in which of the following funds?

Under the GASB Statement No.34 reporting model,which of the following is required?

Which of the following is NOT included in the financial section of a comprehensive annual financial report?

In accounting for costs incurred on a major construction project in a capital projects fund,the construction outlays are reported as expenditures,not capital assets.

Which of the following transactions should the City of Highland account for in a trust fund?

Which of the following funds is a fiduciary fund?

A fund is

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

What is the primary reason that governmental entities use fund accounting?

A city receives a donation from a citizen who specifies that the principal must be invested and the earnings must be used to support operations of a city-owned recreational facility.The principal of this gift should be accounted for in which of the following funds?

Which of the following funds of Chessie City would be consolidated to form the governmental activities column in the city's government-wide financial statements?

The accounting equation applied by state and local governments is

Wigmore City receives a donation of $10 million from a wealthy citizen who stipulates that the funds be used to acquire and install park benches in the city's Veterans Park.The city should report the donation as an increase in

To fulfill the printing needs of its various departments and agencies,the City has established a Central Print Shop,which bills the various departments and agencies of the city for printing services rendered.The Central Print Shop should be accounted for in which of the following funds.

Fiduciary activities only benefit parties other than the government itself.

A government may report some of its funds on a full accrual basis.

Which of the following funds is a governmental fund?

The Financial Accounting Standards Board requires all nongovernmental not-for-profit entities to use fund accounting.

Which of the following activities conducted by a city-owned junior college should be accounted for in an agency fund?

Which fund type would all governments normally include in their fund financial statements?

Riverside Golf Course is a city-owned golf course that collects greens fees in amounts sufficient to cover its expenses.Riverside Golf Course should be accounted for in which of the following funds?

Under the GASB Statement No.34 reporting model,which of the following is required?

Which of the following is NOT included in the financial section of a comprehensive annual financial report?

In accounting for costs incurred on a major construction project in a capital projects fund,the construction outlays are reported as expenditures,not capital assets.

Which of the following transactions should the City of Highland account for in a trust fund?

Which of the following funds is a fiduciary fund?

A fund is

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