Question 1

When the General Fund purchases water from an enterprise fund,the General Fund would credit expenditure.

Accepted Answer

A) True 
 B)False

Question 2

When a special revenue fund accounts for grants that are awarded on a reimbursement basis,revenues are recognized only after qualified expenditures have been recognized.

Accepted Answer

A) True 
 B)False

Question 3

A Special Revenue Fund may not have a positive Unassigned Fund Balance

Accepted Answer

A) True 
 B)False

Question 4

The City of Brownsville had a balance in the Budgetary Fund Balance -- Reserve for Encumbrances account at the end of 2014 in the amount of $90,000. During 2015,all purchase orders related to the $90,000 were filled,and the invoice amount was $91,200. Which of the following would be true regarding the Statement of Revenues,Expenditures,and Changes in Fund Balances for 2015? (assume encumbrances do not lapse)

Accepted Answer

A)  The amount shown for Expenditures would include only the $1,200. 
B)  The amount shown for Expenditures would include only the $90,000. 
C)  The amount shown for Expenditures would include the $91,200. 
D)  The amount shown for Expenditures would not include items related to orders placed in 2014. 
A)  The amount shown for Expenditures would include only the $1,200. 
B)  The amount shown for Expenditures would include only the $90,000. 
C)  The amount shown for Expenditures would include the $91,200. 
D)  The amount shown for Expenditures would not include items related to orders placed in 2014.

Question 5

Interfund services provided and used are recognized as direct Increases and Decreases in Fund Balance

Accepted Answer

A) True 
 B)False

Question 6

The City of Stromfield had the following partial list of pre-closing account balances in its General Fund as of June 30,2015.
   Required:
 Prepare,in good form,a Statement of Revenues,Expenditures,and Changes in Fund Balances for the General Fund for the year ended June 30,2015.

Accepted Answer

The answer of The City of Stromfield had the following...

Question 7

Governmental fund financial statements are to be prepared on the

Accepted Answer

A)  Accrual basis of accounting. 
B)  Cash basis of accounting. 
C)  Modified accrual basis of accounting. 
D)  Tax basis of accounting. 
A)  Accrual basis of accounting. 
B)  Cash basis of accounting. 
C)  Modified accrual basis of accounting. 
D)  Tax basis of accounting.

Question 8

GASB standards for property tax revenue recognition under the modified accrual basis of accounting provide that revenue is permitted to be recorded if the expected amount to be collected can be determined and collection is reasonably assured,even if the taxes are expected to be collected more than 60 days after the fiscal year end.

Accepted Answer

A) True 
 B)False

Question 9

Governmental fund financial statements are prepared using the current financial resource measurement focus.

Accepted Answer

A) True 
 B)False

Question 10

Government and Fiduciary fund statements use the modified accrual basis,while government-wide,and proprietary funds use accrual basis.

Accepted Answer

A) True 
 B)False

Question 11

Transactions between funds of the same government are not assumed to be arm's length in nature.

Accepted Answer

A) True 
 B)False

Question 12

A special item is a significant transaction that is unusual or infrequent,but within the control of management.

Accepted Answer

A) True 
 B)False

Question 13

What is the difference between an extraordinary and special item?

Accepted Answer

Extraordinary items are significant tran

Question 14

The asset,equipment,used by a department accounted for by the General Fund of a governmental unit should be reported in the:

Accepted Answer

A)  Government-wide statements. 
B)  General Fund. 
C)  Both (a) and (b). 
D)  None of the above. 
A)  Government-wide statements. 
B)  General Fund. 
C)  Both (a) and (b). 
D)  None of the above.

Question 15

Interfund services purchased by the General Fund are recognized as:

Accepted Answer

A)  Transfers Out. 
B)  Decreases in Fund Balance. 
C)  Expenditures. 
D)  None of the above. 
A)  Transfers Out. 
B)  Decreases in Fund Balance. 
C)  Expenditures. 
D)  None of the above.

Question 16

What would be the effect on the General Fund's Fund Balance at the end of the current fiscal year of recording the purchase of a $5,000 new computer with a five year estimated useful life and zero salvage?

Accepted Answer

A)  Have no effect on the General Fund's Fund Balance. 
B)  Reduce the General Fund's Fund Balance $1,000. 
C)  Reduce the General Fund's Fund Balance $5,000. 
D)  Reduce the General Fund's Fund Balance $6,000. 
A)  Have no effect on the General Fund's Fund Balance. 
B)  Reduce the General Fund's Fund Balance $1,000. 
C)  Reduce the General Fund's Fund Balance $5,000. 
D)  Reduce the General Fund's Fund Balance $6,000.

Question 17

Special revenue funds are used when it is desirable to provide separate reporting of resources that are assigned to expenditure for purposes other than debt service or capital projects.

Accepted Answer

A) True 
 B)False

Question 18

When payrolls and other liabilities are incurred and must be paid before substantial amounts of cash will be collected,what type of short-term note is desirable and secured by a government's power to tax?

Accepted Answer

A)  Tax Relief Note Payable. 
B)  Tax Budget Note Payable. 
C)  Tax Anticipation Note Payable. 
D)  Tax Encumbrances Note Payable. 
A)  Tax Relief Note Payable. 
B)  Tax Budget Note Payable. 
C)  Tax Anticipation Note Payable. 
D)  Tax Encumbrances Note Payable.

Question 19

The Debt Service Fund would record the receipt of money from the General Fund as nonoperating revenue on the activities Statement of Revenues,Expenditures,and Changes in Fund Balance.

Accepted Answer

A) True 
 B)False

Question 20

Interfund transfers occur between individual funds in the same government system without the requirement of repayment. If the General Fund transferred money to the Debt Service Fund,how would the Debt Service Fund account for the transaction?

Accepted Answer

A)  As non-operating revenue. 
B)  As a liability on the balance sheet. 
C)  As a source of funds on the activities statement. 
D)  As a reduction in net liabilities. 
A)  As non-operating revenue. 
B)  As a liability on the balance sheet. 
C)  As a source of funds on the activities statement. 
D)  As a reduction in net liabilities.

When the General Fund purchases water from an enterprise fund,the General Fund would credit expenditure.

When a special revenue fund accounts for grants that are awarded on a reimbursement basis,revenues are recognized only after qualified expenditures have been recognized.

A Special Revenue Fund may not have a positive Unassigned Fund Balance

Interfund services provided and used are recognized as direct Increases and Decreases in Fund Balance

The City of Stromfield had the following partial list of pre-closing account balances in its General Fund as of June 30,2015. Required: Prepare,in good form,a Statement of Revenues,Expenditures,and Changes in Fund Balances for the General Fund for the year ended June 30,2015.

Governmental fund financial statements are to be prepared on the

Governmental fund financial statements are prepared using the current financial resource measurement focus.

Government and Fiduciary fund statements use the modified accrual basis,while government-wide,and proprietary funds use accrual basis.

Transactions between funds of the same government are not assumed to be arm's length in nature.

A special item is a significant transaction that is unusual or infrequent,but within the control of management.

What is the difference between an extraordinary and special item?

The asset,equipment,used by a department accounted for by the General Fund of a governmental unit should be reported in the:

Interfund services purchased by the General Fund are recognized as:

What would be the effect on the General Fund's Fund Balance at the end of the current fiscal year of recording the purchase of a $5,000 new computer with a five year estimated useful life and zero salvage?

Special revenue funds are used when it is desirable to provide separate reporting of resources that are assigned to expenditure for purposes other than debt service or capital projects.

When payrolls and other liabilities are incurred and must be paid before substantial amounts of cash will be collected,what type of short-term note is desirable and secured by a government's power to tax?

The Debt Service Fund would record the receipt of money from the General Fund as nonoperating revenue on the activities Statement of Revenues,Expenditures,and Changes in Fund Balance.

Interfund transfers occur between individual funds in the same government system without the requirement of repayment. If the General Fund transferred money to the Debt Service Fund,how would the Debt Service Fund account for the transaction?

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

Proprietary Funds

Fiduciary Funds, Inter-fund Transactions

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 4: Accounting for the General and Special Revenue Funds

When the General Fund purchases water from an enterprise fund,the General Fund would credit expenditure.

When a special revenue fund accounts for grants that are awarded on a reimbursement basis,revenues are recognized only after qualified expenditures have been recognized.

A Special Revenue Fund may not have a positive Unassigned Fund Balance

Interfund services provided and used are recognized as direct Increases and Decreases in Fund Balance

The City of Stromfield had the following partial list of pre-closing account balances in its General Fund as of June 30,2015. Required: Prepare,in good form,a Statement of Revenues,Expenditures,and Changes in Fund Balances for the General Fund for the year ended June 30,2015.

Governmental fund financial statements are to be prepared on the

Governmental fund financial statements are prepared using the current financial resource measurement focus.

Government and Fiduciary fund statements use the modified accrual basis,while government-wide,and proprietary funds use accrual basis.

Transactions between funds of the same government are not assumed to be arm's length in nature.

A special item is a significant transaction that is unusual or infrequent,but within the control of management.

What is the difference between an extraordinary and special item?

The asset,equipment,used by a department accounted for by the General Fund of a governmental unit should be reported in the:

Interfund services purchased by the General Fund are recognized as:

What would be the effect on the General Fund's Fund Balance at the end of the current fiscal year of recording the purchase of a $5,000 new computer with a five year estimated useful life and zero salvage?

Special revenue funds are used when it is desirable to provide separate reporting of resources that are assigned to expenditure for purposes other than debt service or capital projects.

When payrolls and other liabilities are incurred and must be paid before substantial amounts of cash will be collected,what type of short-term note is desirable and secured by a government's power to tax?

The Debt Service Fund would record the receipt of money from the General Fund as nonoperating revenue on the activities Statement of Revenues,Expenditures,and Changes in Fund Balance.

Interfund transfers occur between individual funds in the same government system without the requirement of repayment. If the General Fund transferred money to the Debt Service Fund,how would the Debt Service Fund account for the transaction?

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

Proprietary Funds

Fiduciary Funds, Inter-fund Transactions

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