Question 1

GASB Standards require that IRS 457 Deferred Compensation Plans,if administered by the governmental unit,be reported as pension trust funds.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements regarding employer reporting of pension or other employee benefit trust funds is not correct?

Accepted Answer

A)  Contributions by the governmental funds are recorded as expenditures. 
B)  Unfunded amounts are reported in the government-wide statements. 
C)  Proprietary funds record an expense equivalent to the required contribution. 
D)  Governmental funds report unfunded amounts as a fund liability. 
A)  Contributions by the governmental funds are recorded as expenditures. 
B)  Unfunded amounts are reported in the government-wide statements. 
C)  Proprietary funds record an expense equivalent to the required contribution. 
D)  Governmental funds report unfunded amounts as a fund liability.

Question 3

Describe the accounting treatment of Agency Funds,including the purpose,basis of accounting,and required financial statements

Accepted Answer

•Agency funds are used to account for as

Question 4

GASB Statement 31,Accounting and Financial Reporting for Certain Investments and for External Investment Pools,does not apply to which of the following investment types?

Accepted Answer

A)  External investment pools. 
B)  Open-end mutual funds. 
C)  Debt securities. 
D)  Investments of pension funds. 
A)  External investment pools. 
B)  Open-end mutual funds. 
C)  Debt securities. 
D)  Investments of pension funds.

Question 5

GASB Statement No.52 requires that endowments report investments at fair value unless the investments are in real estate

Accepted Answer

A) True 
 B)False

Question 6

Agency fund assets and liabilities are to be recognized :

Accepted Answer

A)  At the time the government becomes responsible for the assets. 
B)  When they are available and measurable. 
C)  Only in the government-wide financial statements. 
D)  When the earnings process is complete and collection is reasonably assured. 
A)  At the time the government becomes responsible for the assets. 
B)  When they are available and measurable. 
C)  Only in the government-wide financial statements. 
D)  When the earnings process is complete and collection is reasonably assured.

Question 7

Which of the following statements is not correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

Accepted Answer

A)  Derivatives include swaps, options, forward contracts and future contracts. 
B)  If a derivative is effective in reducing a government's exposure to identifiable risks, the changes in the value of the derivative are reflected as investment gains or losses in the period that the value changes. 
C)  If a hedge derivative is deemed ineffective it is classified as investment purpose. 
D)  Statement No. 53 applies only to reporting at the government-wide level for derivatives held by governmental funds, not the fund-basis statements. 
A)  Derivatives include swaps, options, forward contracts and future contracts. 
B)  If a derivative is effective in reducing a government's exposure to identifiable risks, the changes in the value of the derivative are reflected as investment gains or losses in the period that the value changes. 
C)  If a hedge derivative is deemed ineffective it is classified as investment purpose. 
D)  Statement No. 53 applies only to reporting at the government-wide level for derivatives held by governmental funds, not the fund-basis statements.

Question 8

Churchville County is trustee for a multi-government investment pool and has established an investment trust fund.Included in the investment trust fund,for management purposes,are investments in the amount of $15 million from the County's General Fund,$3 million from the County's special revenue funds,and $112 million from other governments.Which of the following would be true?

Accepted Answer

A)  The County would report $18 million in an investment trust fund. 
B)  The County would report the entire $130 million in an investment trust fund. 
C)  The County would report the $112 million in an investment trust fund, the $15 million in its General Fund, and the $3 million in special revenue funds. 
D)  The County would report the $112 million in an investment trust fund and the$18 million in a permanent fund. 
A)  The County would report $18 million in an investment trust fund. 
B)  The County would report the entire $130 million in an investment trust fund. 
C)  The County would report the $112 million in an investment trust fund, the $15 million in its General Fund, and the $3 million in special revenue funds. 
D)  The County would report the $112 million in an investment trust fund and the$18 million in a permanent fund.

Question 9

The tax agency fund of Orange County collected $7,000,000 for a school district,$3,000,000 for the county General Fund,and $5,000,000 for a municipality located in the County.County General Fund employees handle the collections,and a 2.5 percent collection fee is charged all units except the county.The total amount of revenue recognized by the county General Fund would be:

Accepted Answer

A)  $ 390,000. 
B)  $3,300,000. 
C)  $3,390,000. 
D)  $15,300,000. 
A)  $ 390,000. 
B)  $3,300,000. 
C)  $3,390,000. 
D)  $15,300,000.

Question 10

In an agency fund,assets are equal to:

Accepted Answer

A)  Liabilities + Net Assets 
B)  Net Assets 
C)  Liabilities 
D)  There are no assets in an Agency Fund 
A)  Liabilities + Net Assets 
B)  Net Assets 
C)  Liabilities 
D)  There are no assets in an Agency Fund

Question 11

Which of the following statements is not required for pension trust funds?

Accepted Answer

A)  Statement of Fiduciary Net Assets. 
B)  Statement of Changes in Fiduciary Net Assets. 
C)  Statement of Fiduciary Cash Flows. 
D)  None of the above; all three statements should be prepared for pension-trust funds. 
A)  Statement of Fiduciary Net Assets. 
B)  Statement of Changes in Fiduciary Net Assets. 
C)  Statement of Fiduciary Cash Flows. 
D)  None of the above; all three statements should be prepared for pension-trust funds.

Question 12

Contrast a defined benefit and defined contribution retirement plan.

Accepted Answer

A defined benefit plan provides retireme

Question 13

When accounting for other postemployment benefits,the OPEB obligation for employees of governmental activities is:

Accepted Answer

A)  Reported in the government-wide statements, but not the fund basis statements. 
B)  The cumulative difference between the amount funded and the annual required contribution. 
C)  Both A and B. 
D)  Neither A nor B. 
A)  Reported in the government-wide statements, but not the fund basis statements. 
B)  The cumulative difference between the amount funded and the annual required contribution. 
C)  Both A and B. 
D)  Neither A nor B.

Question 14

What is the appropriate accounting treatment for real estate investments held in endowments (GASB Statement 52)?

Accepted Answer

•Endowments with land and other investme

Question 15

Contrast the accounting for internal and external portions of investment pools.

Accepted Answer

The internal portion of investment pools

Question 16

If a derivative is effective in reducing a government's exposure to identifiable risks,the changes in the value of the derivative are reflected as investment gains or losses in the period that the value changes.

Accepted Answer

A) True 
 B)False

Question 17

The term "fiduciary funds" include agency,pension trust,investment trust,and permanent funds.

Accepted Answer

A) True 
 B)False

Question 18

______ funds are created when individuals or organizations contribute resources with the agreement that principal and/or income will be used to benefit individuals or nongovernmental organizations.

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 19

Fiduciary Funds are not included in the government-wide financial statements.

Accepted Answer

A) True 
 B)False

Question 20

What is a cost sharing state pension plan?

Accepted Answer

A type of statewide retirement

GASB Standards require that IRS 457 Deferred Compensation Plans,if administered by the governmental unit,be reported as pension trust funds.

Which of the following statements regarding employer reporting of pension or other employee benefit trust funds is not correct?

Describe the accounting treatment of Agency Funds,including the purpose,basis of accounting,and required financial statements

GASB Statement 31,Accounting and Financial Reporting for Certain Investments and for External Investment Pools,does not apply to which of the following investment types?

GASB Statement No.52 requires that endowments report investments at fair value unless the investments are in real estate

Agency fund assets and liabilities are to be recognized :

Which of the following statements is not correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

In an agency fund,assets are equal to:

Which of the following statements is not required for pension trust funds?

Contrast a defined benefit and defined contribution retirement plan.

When accounting for other postemployment benefits,the OPEB obligation for employees of governmental activities is:

What is the appropriate accounting treatment for real estate investments held in endowments (GASB Statement 52)?

Contrast the accounting for internal and external portions of investment pools.

If a derivative is effective in reducing a government's exposure to identifiable risks,the changes in the value of the derivative are reflected as investment gains or losses in the period that the value changes.

The term "fiduciary funds" include agency,pension trust,investment trust,and permanent funds.

______ funds are created when individuals or organizations contribute resources with the agreement that principal and/or income will be used to benefit individuals or nongovernmental organizations.

Fiduciary Funds are not included in the government-wide financial statements.

What is a cost sharing state pension plan?

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

GASB Standards require that IRS 457 Deferred Compensation Plans,if administered by the governmental unit,be reported as pension trust funds.

Which of the following statements regarding employer reporting of pension or other employee benefit trust funds is not correct?

Describe the accounting treatment of Agency Funds,including the purpose,basis of accounting,and required financial statements

GASB Statement 31,Accounting and Financial Reporting for Certain Investments and for External Investment Pools,does not apply to which of the following investment types?

GASB Statement No.52 requires that endowments report investments at fair value unless the investments are in real estate

Agency fund assets and liabilities are to be recognized :

Which of the following statements is not correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

In an agency fund,assets are equal to:

Which of the following statements is not required for pension trust funds?

Contrast a defined benefit and defined contribution retirement plan.

When accounting for other postemployment benefits,the OPEB obligation for employees of governmental activities is:

What is the appropriate accounting treatment for real estate investments held in endowments (GASB Statement 52)?

Contrast the accounting for internal and external portions of investment pools.

If a derivative is effective in reducing a government's exposure to identifiable risks,the changes in the value of the derivative are reflected as investment gains or losses in the period that the value changes.

The term "fiduciary funds" include agency,pension trust,investment trust,and permanent funds.

______ funds are created when individuals or organizations contribute resources with the agreement that principal and/or income will be used to benefit individuals or nongovernmental organizations.

Fiduciary Funds are not included in the government-wide financial statements.

What is a cost sharing state pension plan?

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