Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

The Basic Financial Statements of a city do not include which of the following?

Accepted Answer

A) Government-wide Statement of Net Assets. 
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 Assets. 
B) Government-wide Statement of Activities. 
C) Government-wide Statement of Cash Flows. 
D) Separate balance sheets for governmental and proprietary funds. C

Question 3

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. C

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The focus of the 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 6

In addition to preparing fund financial statements, governments should also prepare consolidated financial statements to provide information on the financial position and operating results of the government as a single economic entity.

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

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 9

Funds divide a government into functional departments.

Accepted Answer

A) True 
 B)False

Question 10

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 11

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 12

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 13

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

Accepted Answer

A) Expense 
B) Encumbrance 
C) Expenditure 
D) General Capital Asset 
A) Expense 
B) Encumbrance 
C) Expenditure 
D) General Capital Asset

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

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

Which of the following assets would NOT be found in the fund balance sheet of the General Fund of the City of Harrison?

Accepted Answer

A) Cash. 
B) Capital assets. 
C) Due from Special Revenue Fund. 
D) Due from State. 
A) Cash. 
B) Capital assets. 
C) Due from Special Revenue Fund. 
D) Due from State.

Question 18

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.

Question 19

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 20

Which of the following is not included in the financial section of the 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

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

The Basic Financial Statements of a city do not include which of the following?

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

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

The focus of the Statement of Activities of the City of West Hills is on which of the following?

In addition to preparing fund financial statements, governments should also prepare consolidated financial statements to provide information on the financial position and operating results of the government as a single economic entity.

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?

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?

Funds divide a government into functional departments.

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

Which of the following funds is a governmental fund?

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?

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

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?

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

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.

Which of the following assets would NOT be found in the fund balance sheet of the General Fund of the City of Harrison?

Basis of accounting determines which of the following?

Which of the following sections is NOT required in the Comprehensive Annual Financial Report of a City?

Which of the following is not included in the financial section of the Comprehensive Annual Financial Report?

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

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

The Basic Financial Statements of a city do not include which of the following?

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

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

The focus of the Statement of Activities of the City of West Hills is on which of the following?

In addition to preparing fund financial statements, governments should also prepare consolidated financial statements to provide information on the financial position and operating results of the government as a single economic entity.

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?

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?

Funds divide a government into functional departments.

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

Which of the following funds is a governmental fund?

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?

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

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?

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

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.

Which of the following assets would NOT be found in the fund balance sheet of the General Fund of the City of Harrison?

Basis of accounting determines which of the following?

Which of the following sections is NOT required in the Comprehensive Annual Financial Report of a City?

Which of the following is not included in the financial section of the Comprehensive Annual Financial Report?

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