Question 1

Which of the following is NOT included in the financial section of a 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

Question 2

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 for governmental fund financial statements. 
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 for governmental fund financial statements. 
D) It has the ability to better measure the results of operations.

Question 3

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 4

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 5

Which of the following is NOT a governmental fund?

Accepted Answer

A) City hall debt service fund. 
B) City utilities enterprise fund. 
C) Gasoline tax special revenue fund. 
D) City hall capital projects fund. 
A) City hall debt service fund. 
B) City utilities enterprise fund. 
C) Gasoline tax special revenue fund. 
D) City hall capital projects fund.

Question 6

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

Accepted Answer

A) Cash. 
B) Capital assets. 
C) Due from special revenue fund. 
D) Due from state government. 
A) Cash. 
B) Capital assets. 
C) Due from special revenue fund. 
D) Due from state government.

Question 7

Under the GASB Statement No.34 reporting model, 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 8

When a fax machine purchased by a governmental entity is received, it should be recorded in the general fund as a(n)

Accepted Answer

A) Expense 
B) Encumbrance 
C) Expenditure 
D) Capital asset 
A) Expense 
B) Encumbrance 
C) Expenditure 
D) Capital asset

Question 9

A not-for-profit entity's statement of net assets will NOT report which of the following?

Accepted Answer

A) Net assets invested in capital assets, net of related debt. 
B) Capital assets. 
C) Temporarily restricted net assets. 
D) Permanently restricted net assets. 
A) Net assets invested in capital assets, net of related debt. 
B) Capital assets. 
C) Temporarily restricted net assets. 
D) Permanently restricted net assets.

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

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

Accepted Answer

A) True 
 B)False

Question 12

Under the GASB Statement No.34 reporting model (as amended by GASB Statement No.63), the government-wide statement of net position will display which of the following?

Accepted Answer

A) Assets, liabilities, and net position. 
B) Assets, liabilities, and fund balances. 
C) Assets, liabilities, and fund equity. 
D) Assets, liabilities, and owners' equity. 
A) Assets, liabilities, and net position. 
B) Assets, liabilities, and fund balances. 
C) Assets, liabilities, and fund equity. 
D) Assets, liabilities, and owners' equity.

Question 13

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 14

The basic financial statements of a city do NOT include which of the following?

Accepted Answer

A) Government-wide statement of net position. 
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 position. 
B) Government-wide statement of activities. 
C) Government-wide statement of cash flows. 
D) Separate balance sheets for governmental and proprietary funds.

Question 15

The accounting equation applied by state and local governments is

Accepted Answer

A) Assets + deferred inflows of resources - liabilities = fund balance 
B) Assets + deferred outflows of resources - liabilities - deferred inflows of resources = fund balance 
C) Assets + deferred inflows of resources = liabilities + deferred outflows of resources + fund balance 
D) Assets - deferred outflows of resources - liabilities + deferred inflows of resources = fund balance 
A) Assets + deferred inflows of resources - liabilities = fund balance 
B) Assets + deferred outflows of resources - liabilities - deferred inflows of resources = fund balance 
C) Assets + deferred inflows of resources = liabilities + deferred outflows of resources + fund balance 
D) Assets - deferred outflows of resources - liabilities + deferred inflows of resources = fund balance

Question 16

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 17

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

Accepted Answer

A) Statement of net position. 
B) Statement of restricted funds. 
C) Statement of activities. 
D) Statement of cash flows. 
A) Statement of net position. 
B) Statement of restricted funds. 
C) Statement of activities. 
D) Statement of cash flows.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Question 20

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

Which of the following is NOT included in the financial section of a comprehensive annual financial report?

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:

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

Which of the following is NOT a governmental fund?

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

Under the GASB Statement No.34 reporting model, the focus of the government-wide statement of activities is on which of the following?

When a fax machine purchased by a governmental entity is received, it should be recorded in the general fund as a(n)

A not-for-profit entity's statement of net assets will NOT report which of the following?

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

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

Under the GASB Statement No.34 reporting model (as amended by GASB Statement No.63), the government-wide statement of net position will display which of the following?

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

The basic financial statements of a city do NOT include which of the following?

The accounting equation applied by state and local governments is

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

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

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

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

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

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

Which of the following is NOT included in the financial section of a comprehensive annual financial report?

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:

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

Which of the following is NOT a governmental fund?

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

Under the GASB Statement No.34 reporting model, the focus of the government-wide statement of activities is on which of the following?

When a fax machine purchased by a governmental entity is received, it should be recorded in the general fund as a(n)

A not-for-profit entity's statement of net assets will NOT report which of the following?

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

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

Under the GASB Statement No.34 reporting model (as amended by GASB Statement No.63), the government-wide statement of net position will display which of the following?

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

The basic financial statements of a city do NOT include which of the following?

The accounting equation applied by state and local governments is

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

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

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

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

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

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