Question 1

Under modified accrual accounting, revenues should be recognized when they are

Accepted Answer

A)  Collected. 
B)  Realizable and estimable. 
C)  Reasonably estimable. 
D)  Measurable and available to be used. 
E)  Earned and collected. 
A)  Collected. 
B)  Realizable and estimable. 
C)  Reasonably estimable. 
D)  Measurable and available to be used. 
E)  Earned and collected.

Question 2

What account is debited in the general fund when equipment is received by a governmental entity?

Accepted Answer

A)  Expenditures. 
B)  Encumbrances. 
C)  Plant assets. 
D)  Accounts Payable. 
E)  Fund Balance-Reserve for Encumbrances. 
A)  Expenditures. 
B)  Encumbrances. 
C)  Plant assets. 
D)  Accounts Payable. 
E)  Fund Balance-Reserve for Encumbrances.

Question 3

What is the primary difference between monies accounted for in the general fund and monies accounted for in the special revenue fund?

Accepted Answer

Monies in the special revenue fund are r

Question 4

Under modified accrual accounting, when are expenditures recorded?

Accepted Answer

Under modified accrual account

Question 5

The Town of Lanarte has recorded the receipt of a $75,000 grant restricted for transporting all senior citizens to polling locations on Election Day in November of 2022. The town now spends $75,000 to transport the citizens on Election Day.Required:Prepare the journal entry (or entries) to record that the town spends $75,000 of the grant it received to transport senior citizens on Election Day and identify the fund in which the entry (or entries) is recorded.

Accepted Answer

In Special

Question 6

Which of the following statements is true regarding governmental fund financial statements?

Accepted Answer

A)  Governmental fund financial statements report a government's activities and financial position as a whole. 
B)  Governmental fund financial statements should tell the amount spent this year on such services as public safety, education, health and sanitation, and the construction of a new road. 
C)  Governmental fund financial statements utilize the accrual basis of accounting much like any for-profit entity. 
D)  Governmental fund financial statements help to determine whether the government's overall financial position improved or deteriorated. 
E)  Governmental fund financial statements report all assets and liabilities in a way comparable to business-type accounting. 
A)  Governmental fund financial statements report a government's activities and financial position as a whole. 
B)  Governmental fund financial statements should tell the amount spent this year on such services as public safety, education, health and sanitation, and the construction of a new road. 
C)  Governmental fund financial statements utilize the accrual basis of accounting much like any for-profit entity. 
D)  Governmental fund financial statements help to determine whether the government's overall financial position improved or deteriorated. 
E)  Governmental fund financial statements report all assets and liabilities in a way comparable to business-type accounting.

Question 7

Special Revenue funds are

Accepted Answer

A)  Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. 
B)  Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations. 
C)  Funds used to account for monies held by the government in a trustee or agency capacity. 
D)  Funds used to account for all financial resources except those required to be accounted for in another fund. 
E)  Funds used to account for resources that are restricted or committed for a specific purpose other than debt payments or capital projects. 
A)  Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. 
B)  Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations. 
C)  Funds used to account for monies held by the government in a trustee or agency capacity. 
D)  Funds used to account for all financial resources except those required to be accounted for in another fund. 
E)  Funds used to account for resources that are restricted or committed for a specific purpose other than debt payments or capital projects.

Question 8

According to GASB Concepts Statement No. 1, what are the three groups of primary users of external state and local governmental financial reports?

Accepted Answer

In Concepts Statement No. 1, GASB identi

Question 9

Governmental funds are

Accepted Answer

A)  Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. 
B)  Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations. 
C)  Funds used to account for monies held by the government in a trustee or agency capacity. 
D)  Funds used to account for all financial resources except those required to be accounted for in another fund. 
E)  Funds used to account for resources that are restricted or committed for a specific purpose other than debt payments or capital projects. 
A)  Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. 
B)  Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations. 
C)  Funds used to account for monies held by the government in a trustee or agency capacity. 
D)  Funds used to account for all financial resources except those required to be accounted for in another fund. 
E)  Funds used to account for resources that are restricted or committed for a specific purpose other than debt payments or capital projects.

Question 10

According to GASB Concepts Statement No. 1, what are the three groups of primary users of external state and local governmental financial reports?

Accepted Answer

A)  The Securities and Exchange Commission, the citizenry, and legislative and oversight bodies. 
B)  The Securities and Exchange Commission, legislative and oversight bodies, and investors and creditors. 
C)  The Securities and Exchange Commission, the citizenry, and investors and creditors. 
D)  The citizenry, legislative and oversight bodies, and investors and creditors. 
E)  The citizenry, management, and the Governmental Accounting Office. 
A)  The Securities and Exchange Commission, the citizenry, and legislative and oversight bodies. 
B)  The Securities and Exchange Commission, legislative and oversight bodies, and investors and creditors. 
C)  The Securities and Exchange Commission, the citizenry, and investors and creditors. 
D)  The citizenry, legislative and oversight bodies, and investors and creditors. 
E)  The citizenry, management, and the Governmental Accounting Office.

Question 11

When should property taxes be recognized under modified accrual accounting?

Accepted Answer

Property taxes should be recognized unde

Question 12

Which of the following is not a classification of non-exchange transactions?

Accepted Answer

A)  Derived tax expenditures. 
B)  Voluntary non-exchange transactions. 
C)  Government-mandated non-exchange transactions. 
D)  Derived tax revenues. 
E)  Imposed non-exchange revenues. 
A)  Derived tax expenditures. 
B)  Voluntary non-exchange transactions. 
C)  Government-mandated non-exchange transactions. 
D)  Derived tax revenues. 
E)  Imposed non-exchange revenues.

Question 13

When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children, which fund should the money be recorded in?

Accepted Answer

A)  The general fund. 
B)  A private purpose trust fund. 
C)  A permanent fund. 
D)  An agency fund. 
E)  A special Revenue fund. 
A)  The general fund. 
B)  A private purpose trust fund. 
C)  A permanent fund. 
D)  An agency fund. 
E)  A special Revenue fund.

Question 14

For governmental entities, the accrual basis of accounting is used for:

Accepted Answer

A)  Special revenue funds. 
B)  Internal service funds. 
C)  Debt service funds. 
D)  The general fund. 
E)  Capital projects funds. 
A)  Special revenue funds. 
B)  Internal service funds. 
C)  Debt service funds. 
D)  The general fund. 
E)  Capital projects funds.

Question 15

Which of the following is not a true statement regarding revenues from various types of nonexchange transactions?

Accepted Answer

A)  Derived tax revenues occur as a result of sales and or income tax. 
B)  Imposed nonexchange revenues consist of only fines and penalties assessed by the governing agency. 
C)  Government mandated nonexchange transactions includes grants from the federal government to the local public-school system for a free lunch program. 
D)  Voluntary nonexchange transactions can originate from a governmental agency or private citizen organization. 
E)  Imposed nonexchange transactions revenue recognition is made in the time period when the resulting resources are required to be used or in the first period in which use is permitted. 
A)  Derived tax revenues occur as a result of sales and or income tax. 
B)  Imposed nonexchange revenues consist of only fines and penalties assessed by the governing agency. 
C)  Government mandated nonexchange transactions includes grants from the federal government to the local public-school system for a free lunch program. 
D)  Voluntary nonexchange transactions can originate from a governmental agency or private citizen organization. 
E)  Imposed nonexchange transactions revenue recognition is made in the time period when the resulting resources are required to be used or in the first period in which use is permitted.

Question 16

Salaries and wages that have been earned by governmental employees that have not yet been paid are recorded in the general fund as:

Accepted Answer

A)  An expenditure. 
B)  An encumbrance. 
C)  An appropriation. 
D)  An expense. 
E)  An investment. 
A)  An expenditure. 
B)  An encumbrance. 
C)  An appropriation. 
D)  An expense. 
E)  An investment.

Question 17

Which group of financial statements is prepared using the "modified accrual accounting" approach?

Accepted Answer

A)  GAAP-based financial statements. 
B)  Governmental fund financial statements. 
C)  Cost-based financial statements. 
D)  Government-wide financial statements. 
E)  General-purpose financial statements. 
A)  GAAP-based financial statements. 
B)  Governmental fund financial statements. 
C)  Cost-based financial statements. 
D)  Government-wide financial statements. 
E)  General-purpose financial statements.

Question 18

In May of 2022, the Town of Lanarte received a $75,000 grant restricted for transporting all senior citizens to polling locations on Election Day in November of 2022.Required:Prepare the journal entry to record the receipt of the grant and identify the fund in which the entry is recorded.

Accepted Answer

In Special

Question 19

What are the two proprietary fund types?
(1) Internal service funds.
(2) Investment trust funds.
(3) Enterprise funds.
(4) Agency funds.

Accepted Answer

A)  1 and 2. 
B)  2 and 3. 
C)  1 and 3. 
D)  2 and 4. 
E)  1 and 4. 
A)  1 and 2. 
B)  2 and 3. 
C)  1 and 3. 
D)  2 and 4. 
E)  1 and 4.

Question 20

The Marshall County legislature voted to set aside $650,000 to have new street signs produced for county roads.Required:For governmental fund financial statements, prepare the journal entry for the adjustment to the fund balance of the general fund.

Accepted Answer

The answer of The Marshall County legislature voted to set...

Under modified accrual accounting, revenues should be recognized when they are

What account is debited in the general fund when equipment is received by a governmental entity?

What is the primary difference between monies accounted for in the general fund and monies accounted for in the special revenue fund?

Under modified accrual accounting, when are expenditures recorded?

Which of the following statements is true regarding governmental fund financial statements?

Special Revenue funds are

According to GASB Concepts Statement No. 1, what are the three groups of primary users of external state and local governmental financial reports?

Governmental funds are

According to GASB Concepts Statement No. 1, what are the three groups of primary users of external state and local governmental financial reports?

When should property taxes be recognized under modified accrual accounting?

Which of the following is not a classification of non-exchange transactions?

When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children, which fund should the money be recorded in?

For governmental entities, the accrual basis of accounting is used for:

Which of the following is not a true statement regarding revenues from various types of nonexchange transactions?

Salaries and wages that have been earned by governmental employees that have not yet been paid are recorded in the general fund as:

Which group of financial statements is prepared using the "modified accrual accounting" approach?

In May of 2022, the Town of Lanarte received a $75,000 grant restricted for transporting all senior citizens to polling locations on Election Day in November of 2022.Required:Prepare the journal entry to record the receipt of the grant and identify the fund in which the entry is recorded.

What are the two proprietary fund types? (1) Internal service funds. (2) Investment trust funds. (3) Enterprise funds. (4) Agency funds.

The Marshall County legislature voted to set aside $650,000 to have new street signs produced for county roads.Required:For governmental fund financial statements, prepare the journal entry for the adjustment to the fund balance of the general fund.

Accounting for Estates and Trusts

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for State and Local Governments, Part II

Partnerships: Termination and Liquidation

Partnerships: Formation and Operation

Accounting for Legal Reorganizations and Liquidations

Financial Reporting and the Securities and Exchange Commission

Worldwide Accounting Diversity and International Accounting Standards

Translation of Foreign Currency Financial Statements

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Segment and Interim Reporting

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements Intra-Entity Asset Transactions

Consolidated Financial Statements and Outside Ownership

Consolidations - Subsequent to the Date of Acquisition

Consolidation of Financial Information

The Equity Method of Accounting for Investments

Filters

Exam 16: Accounting for State and Local Governments, Part I

Under modified accrual accounting, revenues should be recognized when they are

What account is debited in the general fund when equipment is received by a governmental entity?

What is the primary difference between monies accounted for in the general fund and monies accounted for in the special revenue fund?

Under modified accrual accounting, when are expenditures recorded?

Which of the following statements is true regarding governmental fund financial statements?

Special Revenue funds are

According to GASB Concepts Statement No. 1, what are the three groups of primary users of external state and local governmental financial reports?

Governmental funds are

According to GASB Concepts Statement No. 1, what are the three groups of primary users of external state and local governmental financial reports?

When should property taxes be recognized under modified accrual accounting?

Which of the following is not a classification of non-exchange transactions?

When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children, which fund should the money be recorded in?

For governmental entities, the accrual basis of accounting is used for:

Which of the following is not a true statement regarding revenues from various types of nonexchange transactions?

Salaries and wages that have been earned by governmental employees that have not yet been paid are recorded in the general fund as:

Which group of financial statements is prepared using the "modified accrual accounting" approach?

In May of 2022, the Town of Lanarte received a $75,000 grant restricted for transporting all senior citizens to polling locations on Election Day in November of 2022.Required:Prepare the journal entry to record the receipt of the grant and identify the fund in which the entry is recorded.

What are the two proprietary fund types? (1) Internal service funds. (2) Investment trust funds. (3) Enterprise funds. (4) Agency funds.

The Marshall County legislature voted to set aside $650,000 to have new street signs produced for county roads.Required:For governmental fund financial statements, prepare the journal entry for the adjustment to the fund balance of the general fund.

Accounting for Estates and Trusts

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for State and Local Governments, Part II

Partnerships: Termination and Liquidation

Partnerships: Formation and Operation

Accounting for Legal Reorganizations and Liquidations

Financial Reporting and the Securities and Exchange Commission

Worldwide Accounting Diversity and International Accounting Standards

Translation of Foreign Currency Financial Statements

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Segment and Interim Reporting

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements Intra-Entity Asset Transactions

Consolidated Financial Statements and Outside Ownership

Consolidations - Subsequent to the Date of Acquisition

Consolidation of Financial Information

The Equity Method of Accounting for Investments

Filters