Question 1

Fiduciary activities only benefit parties other than the government itself.

Accepted Answer

A) True 
 B)False  True

Question 2

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. B

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

Funds divide a government into functional departments.

Accepted Answer

A) True 
 B)False

Question 5

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 6

During the current fiscal year, Mountain View City's water utility, an enterprise fund, rendered billings for water supplied to the general fund.Which of the following accounts should be debited by the general fund?

Accepted Answer

A) Transfer-out to enterprise fund 
B) Due to water utility enterprise fund 
C) Appropriations 
D) Expenditures 
A) Transfer-out to enterprise fund 
B) Due to water utility enterprise fund 
C) Appropriations 
D) Expenditures

Question 7

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 8

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 9

Which of the following liabilities would NOT be found in the general fund balance sheet 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 10

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 11

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 12

Which of the following funds is a proprietary fund?

Accepted Answer

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

Question 13

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 14

Lakeside Art Center, a nongovernmental not-for-profit entity, receives a contribution of $5 million.The donor stipulates that the contribution must be used to acquire paintings by local artists.Lakeside should classify the contribution as

Accepted Answer

A) Permanently restricted 
B) Temporarily restricted 
C) Committed 
D) Unrestricted 
A) Permanently restricted 
B) Temporarily restricted 
C) Committed 
D) Unrestricted

Question 15

For which of the following entities is fund accounting mandated for financial reporting?

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 16

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 17

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

Accepted Answer

A) True 
 B)False

Question 18

The focus of the government-wide 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 19

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 20

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.

Fiduciary activities only benefit parties other than the government itself.

A fund is

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

Funds divide a government into functional departments.

Basis of accounting determines which of the following?

During the current fiscal year, Mountain View City's water utility, an enterprise fund, rendered billings for water supplied to the general fund.Which of the following accounts should be debited by the general fund?

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 funds is a governmental fund?

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

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

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?

Which of the following funds is a proprietary fund?

Which of the following funds is a fiduciary fund?

Lakeside Art Center, a nongovernmental not-for-profit entity, receives a contribution of $5 million.The donor stipulates that the contribution must be used to acquire paintings by local artists.Lakeside should classify the contribution as

For which of the following entities is fund accounting mandated for financial reporting?

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

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

The focus of the government-wide statement of activities of the City of West Hills is on which of the following?

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?

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?

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

Pensions and Other Fiduciary Activities

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Auditing Governments and Notforprofit Organizations

Federal Government Accounting

Filters

Exam 2: Fund Accounting

Fiduciary activities only benefit parties other than the government itself.

A fund is

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

Funds divide a government into functional departments.

Basis of accounting determines which of the following?

During the current fiscal year, Mountain View City's water utility, an enterprise fund, rendered billings for water supplied to the general fund.Which of the following accounts should be debited by the general fund?

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 funds is a governmental fund?

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

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

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?

Which of the following funds is a proprietary fund?

Which of the following funds is a fiduciary fund?

Lakeside Art Center, a nongovernmental not-for-profit entity, receives a contribution of $5 million.The donor stipulates that the contribution must be used to acquire paintings by local artists.Lakeside should classify the contribution as

For which of the following entities is fund accounting mandated for financial reporting?

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

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

The focus of the government-wide statement of activities of the City of West Hills is on which of the following?

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?

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?

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

Pensions and Other Fiduciary Activities

Issues of Reporting, Disclosure, and Financial Analysis

Not-For-Profit Organizations

Colleges and Universities

Health Care Providers

Managing for Results

Auditing Governments and Notforprofit Organizations

Federal Government Accounting

Filters