Question 1

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.

Question 2

Under the GASB Statement No.34 reporting model for governmental entities, 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 3

Under the GASB Statement No.34 reporting model for governmental entities, the government-wide Statement of Net Assets will display which of the following?

Accepted Answer

A) Assets, Liabilities, and Net Assets. 
B) Assets, Liabilities, and Fund Balances. 
C) Assets, Liabilities, and Fund Equity. 
D) Assets, Liabilities, and Owner's Equity. 
A) Assets, Liabilities, and Net Assets. 
B) Assets, Liabilities, and Fund Balances. 
C) Assets, Liabilities, and Fund Equity. 
D) Assets, Liabilities, and Owner's Equity.

Question 4

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 standards for the governmental fund financial statements required by the new GASB reporting model. 
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 standards for the governmental fund financial statements required by the new GASB reporting model. 
D) It has the ability to better measure the results of operations.

Question 5

If an entity adopts a full accrual basis of accounting, its measurement focus will automatically be on all economic resources.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following liabilities would NOT be found in the fund balance sheet of the General Fund 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 7

Under the GASB Statement No.34 reporting model for governmental entities, 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 that views the government as a collection of separate funds and reports using the current financial resources measurement focus and modified accrual basis of accounting for governmental funds and one that views the government as a whole by combining all governmental activities in one column and all business-type activities in another column using the full accrual basis of accounting for both columns. 
D) Two sets of financial statements, one that views the government as a whole using the current financial resources measurement focus and modified accrual basis of accounting and one that views the government by function and combines all governmental activities in one column and all business-type activities in another column using 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 that views the government as a collection of separate funds and reports using the current financial resources measurement focus and modified accrual basis of accounting for governmental funds and one that views the government as a whole by combining all governmental activities in one column and all business-type activities in another column using the full accrual basis of accounting for both columns. 
D) Two sets of financial statements, one that views the government as a whole using the current financial resources measurement focus and modified accrual basis of accounting and one that views the government by function and combines all governmental activities in one column and all business-type activities in another column using the full accrual basis of accounting for both columns.

Question 8

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 9

Which of the following funds is accounted for on the modified accrual basis of accounting?

Accepted Answer

A) General fund. 
B) Internal service fund. 
C) Proprietary fund. 
D) Pension trust fund. 
A) General fund. 
B) Internal service fund. 
C) Proprietary fund. 
D) Pension trust fund.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Accepted Answer

A) Statement of Position. 
B) Statement of Restricted Funds. 
C) Statement of Activities. 
D) Statement of Cash Flows. 
A) Statement of Position. 
B) Statement of Restricted Funds. 
C) Statement of Activities. 
D) Statement of Cash Flows.

Question 13

Fiduciary activities only benefit parties other than the government itself.

Accepted Answer

A) True 
 B)False

Question 14

For which of the following entities is fund accounting mandated?

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.

Question 15

Fund accounting promotes control and accountability over restricted resources.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

The primary focus of the Statement of Activities of a not-for-profit organization is on determining the net increase/decrease in which of the following?

Accepted Answer

A) Unrestricted Net Assets. 
B) Temporarily Restricted Net Assets. 
C) Permanent Net Assets. 
D) Net Assets of the entity taken as a whole. 
A) Unrestricted Net Assets. 
B) Temporarily Restricted Net Assets. 
C) Permanent Net Assets. 
D) Net Assets of the entity taken as a whole.

Question 18

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 19

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 20

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

Accepted Answer

A) True 
 B)False

A fund is

Under the GASB Statement No.34 reporting model for governmental entities, the focus of the government-wide Statement of Activities is on which of the following?

Under the GASB Statement No.34 reporting model for governmental entities, the government-wide Statement of Net Assets will display 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:

If an entity adopts a full accrual basis of accounting, its measurement focus will automatically be on all economic resources.

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

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

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

Which of the following funds is accounted for on the modified accrual basis of accounting?

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

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

Fiduciary activities only benefit parties other than the government itself.

For which of the following entities is fund accounting mandated?

Fund accounting promotes control and accountability over restricted resources.

The primary focus of the Statement of Activities of a not-for-profit organization is on determining the net increase/decrease in which of the following?

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

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

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

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

A fund is

Under the GASB Statement No.34 reporting model for governmental entities, the focus of the government-wide Statement of Activities is on which of the following?

Under the GASB Statement No.34 reporting model for governmental entities, the government-wide Statement of Net Assets will display 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:

If an entity adopts a full accrual basis of accounting, its measurement focus will automatically be on all economic resources.

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

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

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

Which of the following funds is accounted for on the modified accrual basis of accounting?

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

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

Fiduciary activities only benefit parties other than the government itself.

For which of the following entities is fund accounting mandated?

Fund accounting promotes control and accountability over restricted resources.

The primary focus of the Statement of Activities of a not-for-profit organization is on determining the net increase/decrease in which of the following?

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

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

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

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