Question 1

Financial assets reported by most governmental investment trust funds should be reported at

Accepted Answer

A) Cost 
B) Amortized historical cost. 
C) Fair value on the date of the financial statements. 
D) Fair value computed by a weighted-average approach. 
A) Cost 
B) Amortized historical cost. 
C) Fair value on the date of the financial statements. 
D) Fair value computed by a weighted-average approach.

Question 2

The following financial statements must be reported for fiduciary funds.

Accepted Answer

A) Statement of cash flows 
B) Statement of changes in fiduciary net assets 
C) Statement of fiduciary net assets 
D) All of the above 
E) b & c only 
A) Statement of cash flows 
B) Statement of changes in fiduciary net assets 
C) Statement of fiduciary net assets 
D) All of the above 
E) b & c only

Question 3

The City of Highland Hills receives a federal grant to assist in nutrition programs for its senior citizens.Senior citizens whose income is below a specified amount the amount was specified by the Federal government are eligible to participate in the program.Monthly checks of $100 this amount was specified by the Federal government will be mailed to eligible senior citizens.The proceeds of this grant should be accounted for in which of the following funds of the City?

Accepted Answer

A) The general fund. 
B) A special revenue fund. 
C) An agency fund. 
D) Private-purpose trust fund. 
A) The general fund. 
B) A special revenue fund. 
C) An agency fund. 
D) Private-purpose trust fund.

Question 4

A defined contribution pension plan is one in which the employer agrees to which of the following?

Accepted Answer

A) The employer agrees to make payments to a specified pension plan with no guarantee of a specific pension amount to be paid to the employee. 
B) The employer agrees to make actuarially determined payments to a pension plan AND guarantees that the employee will receive a specified pension benefit usually determined by length of service and salary. 
C) The employer agrees to make actuarially determined payments to a pension plan that guarantees that the employee will receive a specified pension usually determined by length of service and salary. 
D) The employer agrees to pay specified amounts usually determined by length of service and salary to the employee upon retirement. 
A) The employer agrees to make payments to a specified pension plan with no guarantee of a specific pension amount to be paid to the employee. 
B) The employer agrees to make actuarially determined payments to a pension plan AND guarantees that the employee will receive a specified pension benefit usually determined by length of service and salary. 
C) The employer agrees to make actuarially determined payments to a pension plan that guarantees that the employee will receive a specified pension usually determined by length of service and salary. 
D) The employer agrees to pay specified amounts usually determined by length of service and salary to the employee upon retirement.

Question 5

Assets reported in a government's investment trust fund should include:

Accepted Answer

A) Only investments owned by external participants in the investment pool. 
B) Investments of both the sponsoring government and of external participants in the investment pool. 
C) Investments related to the sponsoring government's governmental funds and of external participants in the investment pool. 
D) Investments related to the sponsoring government's other fiduciary funds and of external participants in the investment pool. 
A) Only investments owned by external participants in the investment pool. 
B) Investments of both the sponsoring government and of external participants in the investment pool. 
C) Investments related to the sponsoring government's governmental funds and of external participants in the investment pool. 
D) Investments related to the sponsoring government's other fiduciary funds and of external participants in the investment pool.

Question 6

Which of the following is NOT a fiduciary fund?

Accepted Answer

A) Pension trust fund. 
B) Investment trust fund. 
C) Permanent fund. 
D) Private purpose trust fund. 
A) Pension trust fund. 
B) Investment trust fund. 
C) Permanent fund. 
D) Private purpose trust fund.

Question 7

An employer may have a liability to a defined benefit pension plan other than for its annual required contributions, depending on the future financial health of the plan.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following activities of a governmental entity should be accounted for in a fiduciary fund?

Accepted Answer

A) Funds received from the federal government to support public transportation activities. 
B) Funds received from an individual who specified that the principal must be kept intact but the income can be used to support families of police officers killed in the line of duty. 
C) Funds received from the state government that must be used to purchase capital assets. 
D) Funds received from a contractor to assist with the development of utility infrastructure. 
A) Funds received from the federal government to support public transportation activities. 
B) Funds received from an individual who specified that the principal must be kept intact but the income can be used to support families of police officers killed in the line of duty. 
C) Funds received from the state government that must be used to purchase capital assets. 
D) Funds received from a contractor to assist with the development of utility infrastructure.

Question 9

Fiduciary funds focus on current financial resources and use the full accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 10

Under proposed GASB standards, accounting for other postemployment benefits OPEB would

Accepted Answer

A) Continue to permit governments to fund OPEB benefits on a pay-as-you-go basis. 
B) Require governments to report actuarially required contributions as OPEB expense, regardless of whether these contributions are actually made by the government. 
C) Require governments to report OPEB costs based on FASB Statement No.106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." 
D) Require disclosure only of estimated OPEB liabilities. 
A) Continue to permit governments to fund OPEB benefits on a pay-as-you-go basis. 
B) Require governments to report actuarially required contributions as OPEB expense, regardless of whether these contributions are actually made by the government. 
C) Require governments to report OPEB costs based on FASB Statement No.106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." 
D) Require disclosure only of estimated OPEB liabilities.

Financial assets reported by most governmental investment trust funds should be reported at

The following financial statements must be reported for fiduciary funds.

A defined contribution pension plan is one in which the employer agrees to which of the following?

Assets reported in a government's investment trust fund should include:

Which of the following is NOT a fiduciary fund?

An employer may have a liability to a defined benefit pension plan other than for its annual required contributions, depending on the future financial health of the plan.

Which of the following activities of a governmental entity should be accounted for in a fiduciary fund?

Fiduciary funds focus on current financial resources and use the full accrual basis of accounting.

Under proposed GASB standards, accounting for other postemployment benefits OPEB would

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

Business-Type Activities

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 10: Fiduciary Funds and Permanent Funds

Financial assets reported by most governmental investment trust funds should be reported at

The following financial statements must be reported for fiduciary funds.

A defined contribution pension plan is one in which the employer agrees to which of the following?

Assets reported in a government's investment trust fund should include:

Which of the following is NOT a fiduciary fund?

An employer may have a liability to a defined benefit pension plan other than for its annual required contributions, depending on the future financial health of the plan.

Which of the following activities of a governmental entity should be accounted for in a fiduciary fund?

Fiduciary funds focus on current financial resources and use the full accrual basis of accounting.

Under proposed GASB standards, accounting for other postemployment benefits OPEB would

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

Business-Type Activities

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