Question 1

Which of the following is not true regarding postemployment benefit plans other than pension plans?

Accepted Answer

A)  Most governments have operated on a pay-as-you-go basis, leaving such plans underfunded. 
B)  GASB Statement No. 43, Financial Reporting for Postretirement Benefit Plans Other Than Pension Plans, requires that such plans be fully funded. 
C)  Similar to pensions, governments are required to present two financial statements, the Statement of Plan Net Assets and the Statement of Changes in Plan Net Assets. 
D)  Two schedules must be included as required supplementary information: the Schedule of Funding Progress and the Schedule of Employer Contributions. 
A)  Most governments have operated on a pay-as-you-go basis, leaving such plans underfunded. 
B)  GASB Statement No. 43, Financial Reporting for Postretirement Benefit Plans Other Than Pension Plans, requires that such plans be fully funded. 
C)  Similar to pensions, governments are required to present two financial statements, the Statement of Plan Net Assets and the Statement of Changes in Plan Net Assets. 
D)  Two schedules must be included as required supplementary information: the Schedule of Funding Progress and the Schedule of Employer Contributions.

Question 2

A fund that is the result of an agreement between a contributor and a government that the principal and/or income of trust assets is for the benefit of individuals,organizations,or other governments is a(n):

Accepted Answer

A)  Agency fund 
B)  Private-Purpose Trust Fund 
C)  Investment Trust Fund 
D)  Pension Trust Fund 
A)  Agency fund 
B)  Private-Purpose Trust Fund 
C)  Investment Trust Fund 
D)  Pension Trust Fund

Question 3

Donated resources that benefit individuals or private organizations are reported in a private-purpose trust fund.

Accepted Answer

A) True 
 B)False

Question 4

Fiduciary Funds are used to account for assets held by a government acting as a trustee or agent for entities external to the governmental unit:
 Including individuals,organizations,and other governmental units.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true regarding the financial statements of fiduciary funds?

Accepted Answer

A)  Fiduciary funds' financial statements include the Statement of Fiduciary Net Assets, the Statement of Changes in Fiduciary Net Assets, and the Statement of Fiduciary Cash Flows. 
B)  Fiduciary funds are accounted for using the economic resources measurement focus and accrual basis of accounting. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Fiduciary funds' financial statements include the Statement of Fiduciary Net Assets, the Statement of Changes in Fiduciary Net Assets, and the Statement of Fiduciary Cash Flows. 
B)  Fiduciary funds are accounted for using the economic resources measurement focus and accrual basis of accounting. 
C)  Both of the above. 
D)  Neither of the above.

Question 6

Which of the following statements is correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

Accepted Answer

A)  Changes in the value of hedge derivatives are reported in the Statement of Net Assets. 
B)  If a derivative is an investment derivative, the changes in the value of the derivative are deferred and reported in the statement of net assets. 
C)  Statement No. 53 does not apply to proprietary or fiduciary funds. 
D)  Statement No. 53 applies to government financial statements prepared using the modified accrual basis of accounting. 
A)  Changes in the value of hedge derivatives are reported in the Statement of Net Assets. 
B)  If a derivative is an investment derivative, the changes in the value of the derivative are deferred and reported in the statement of net assets. 
C)  Statement No. 53 does not apply to proprietary or fiduciary funds. 
D)  Statement No. 53 applies to government financial statements prepared using the modified accrual basis of accounting.

Question 7

According to GASB Statement 31,Accounting and Financial Reporting for Certain Investments and for External Investment Pools,investments of internal investment pools are to be reported in:

Accepted Answer

A)  The funds providing the resources for the investments. 
B)  An investment trust fund. 
C)  An agency fund. 
D)  Either A and B. 
A)  The funds providing the resources for the investments. 
B)  An investment trust fund. 
C)  An agency fund. 
D)  Either A and B.

Question 8

Which type of pension plan most commonly results in an unfunded actuarial liability?

Accepted Answer

A)  Defined benefit plan. 
B)  Defined contribution. 
C)  Both A and B. 
D)  Neither A or B. 
A)  Defined benefit plan. 
B)  Defined contribution. 
C)  Both A and B. 
D)  Neither A or B.

Question 9

Statement 53 (reporting of derivatives)applies to government financial statements prepared using the modified accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 10

If a city government contributes to a statewide pension plan,both the city and state governments would report the state administered plan as a pension trust fund in their basic financial statements.

Accepted Answer

A) True 
 B)False

Question 11

Statement 53 (reporting of derivatives)does not apply to proprietary or fiduciary funds.

Accepted Answer

A) True 
 B)False

Question 12

GASB Statement No.52 requires endowments with investment real estate to report those assets at:

Accepted Answer

A)  Historical cost 
B)  Fair market value 
C)  Historical cost net of related debt 
D)  Market value net of related debt 
A)  Historical cost 
B)  Fair market value 
C)  Historical cost net of related debt 
D)  Market value net of related debt

Question 13

Investments in a pension trust fund should generally be reported using fair market value.

Accepted Answer

A) True 
 B)False

Question 14

Jasper City is trustee for the Henry J.Moneybags Endowment Fund,created to provide scholarships for students.This is an example of which type of fund?

Accepted Answer

A)  Permanent. 
B)  Pension trust. 
C)  Agency. 
D)  Private-purpose trust. 
A)  Permanent. 
B)  Pension trust. 
C)  Agency. 
D)  Private-purpose trust.

Question 15

GASB Statement No.53 establishes reporting requirements for governments entering into derivative instruments.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true regarding pension accounting and reporting for state and local governments?

Accepted Answer

A)  When the General Fund makes a contribution to a pension trust fund, the account "Expenditures" is debited. 
B)  The Statement of Changes in Fiduciary Net Assets reports "additions" and "deductions," computed on the accrual basis. 
C)  Both of the above. 
D)  Neither of the above. 
A)  When the General Fund makes a contribution to a pension trust fund, the account "Expenditures" is debited. 
B)  The Statement of Changes in Fiduciary Net Assets reports "additions" and "deductions," computed on the accrual basis. 
C)  Both of the above. 
D)  Neither of the above.

Question 17

______ funds are created when individuals or organizations contribute resources with the agreement that the income will be used to the citizenry or the government's programs.

Accepted Answer

A)  Agency 
B)  Investment trust 
C)  Private-purpose trust 
D)  Permanent 
A)  Agency 
B)  Investment trust 
C)  Private-purpose trust 
D)  Permanent

Question 18

Which of the following is true regarding fiduciary funds?

Accepted Answer

A)  Investment trust funds account for the internal portion of an investment pool, when a government is trustee for that pool. 
B)  Private-purpose trust funds account for resources that are administered by a government for the benefit of others, such as a fund held to distribute resources to local not-for-profit charities. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Investment trust funds account for the internal portion of an investment pool, when a government is trustee for that pool. 
B)  Private-purpose trust funds account for resources that are administered by a government for the benefit of others, such as a fund held to distribute resources to local not-for-profit charities. 
C)  Both of the above. 
D)  Neither of the above.

Question 19

Agency fund assets are offset by liabilities equal in amount,so no fund equity exists.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not a fiduciary fund?

Accepted Answer

A)  Private-Purpose Trust Fund. 
B)  Investment Trust Fund. 
C)  Pension Trust Fund. 
D)  Permanent Fund. 
A)  Private-Purpose Trust Fund. 
B)  Investment Trust Fund. 
C)  Pension Trust Fund. 
D)  Permanent Fund.

Which of the following is not true regarding postemployment benefit plans other than pension plans?

A fund that is the result of an agreement between a contributor and a government that the principal and/or income of trust assets is for the benefit of individuals,organizations,or other governments is a(n):

Donated resources that benefit individuals or private organizations are reported in a private-purpose trust fund.

Fiduciary Funds are used to account for assets held by a government acting as a trustee or agent for entities external to the governmental unit: Including individuals,organizations,and other governmental units.

Which of the following is true regarding the financial statements of fiduciary funds?

Which of the following statements is correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

According to GASB Statement 31,Accounting and Financial Reporting for Certain Investments and for External Investment Pools,investments of internal investment pools are to be reported in:

Which type of pension plan most commonly results in an unfunded actuarial liability?

Statement 53 (reporting of derivatives)applies to government financial statements prepared using the modified accrual basis of accounting.

If a city government contributes to a statewide pension plan,both the city and state governments would report the state administered plan as a pension trust fund in their basic financial statements.

Statement 53 (reporting of derivatives)does not apply to proprietary or fiduciary funds.

GASB Statement No.52 requires endowments with investment real estate to report those assets at:

Investments in a pension trust fund should generally be reported using fair market value.

Jasper City is trustee for the Henry J.Moneybags Endowment Fund,created to provide scholarships for students.This is an example of which type of fund?

GASB Statement No.53 establishes reporting requirements for governments entering into derivative instruments.

Which of the following is true regarding pension accounting and reporting for state and local governments?

______ funds are created when individuals or organizations contribute resources with the agreement that the income will be used to the citizenry or the government's programs.

Which of the following is true regarding fiduciary funds?

Agency fund assets are offset by liabilities equal in amount,so no fund equity exists.

Which of the following is not a fiduciary fund?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Exam 7: Fiduciary Trustfunds

Which of the following is not true regarding postemployment benefit plans other than pension plans?

A fund that is the result of an agreement between a contributor and a government that the principal and/or income of trust assets is for the benefit of individuals,organizations,or other governments is a(n):

Donated resources that benefit individuals or private organizations are reported in a private-purpose trust fund.

Fiduciary Funds are used to account for assets held by a government acting as a trustee or agent for entities external to the governmental unit: Including individuals,organizations,and other governmental units.

Which of the following is true regarding the financial statements of fiduciary funds?

Which of the following statements is correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

According to GASB Statement 31,Accounting and Financial Reporting for Certain Investments and for External Investment Pools,investments of internal investment pools are to be reported in:

Which type of pension plan most commonly results in an unfunded actuarial liability?

Statement 53 (reporting of derivatives)applies to government financial statements prepared using the modified accrual basis of accounting.

If a city government contributes to a statewide pension plan,both the city and state governments would report the state administered plan as a pension trust fund in their basic financial statements.

Statement 53 (reporting of derivatives)does not apply to proprietary or fiduciary funds.

GASB Statement No.52 requires endowments with investment real estate to report those assets at:

Investments in a pension trust fund should generally be reported using fair market value.

Jasper City is trustee for the Henry J.Moneybags Endowment Fund,created to provide scholarships for students.This is an example of which type of fund?

GASB Statement No.53 establishes reporting requirements for governments entering into derivative instruments.

Which of the following is true regarding pension accounting and reporting for state and local governments?

______ funds are created when individuals or organizations contribute resources with the agreement that the income will be used to the citizenry or the government's programs.

Which of the following is true regarding fiduciary funds?

Agency fund assets are offset by liabilities equal in amount,so no fund equity exists.

Which of the following is not a fiduciary fund?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Government-Wide Statements, Capital Assets, Long-Term Debt

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters