Question 1

Which statement is not correct?

Accepted Answer

A) Governmental funds account for expenditures of financial resources rather than matching revenues and expenses. 
B) The Fund Balance Reserved for Encumbrances account is not closed at the end of a fiscal year. 
C) Revenues from licenses and permit fees are recognized when received in cash if using the modified accrual basis of accounting for governmental funds. 
D) A fund is an independent accounting entity composed of cash and other financial resources, segregated for the purpose of carrying on specific activities and objectives. 
E) Commitments for purchase orders are recorded as expenses. 
A) Governmental funds account for expenditures of financial resources rather than matching revenues and expenses. 
B) The Fund Balance Reserved for Encumbrances account is not closed at the end of a fiscal year. 
C) Revenues from licenses and permit fees are recognized when received in cash if using the modified accrual basis of accounting for governmental funds. 
D) A fund is an independent accounting entity composed of cash and other financial resources, segregated for the purpose of carrying on specific activities and objectives. 
E) Commitments for purchase orders are recorded as expenses.

Question 2

What organization is responsible for establishing accounting principles for governmental entities?
 By whom was this organization established?

Accepted Answer

The organization that is responsible for

Question 3

Under modified accrual accounting, when should revenues be reported by a governmental-type fund?

Accepted Answer

Under modified accrual accounting, reven

Question 4

Which classifications may be not used for the Fund Balance of governmental funds?

Accepted Answer

A) Spendable 
B) Non-Spendable 
C) Assigned 
D) Unassigned 
E) Restricted 
A) Spendable 
B) Non-Spendable 
C) Assigned 
D) Unassigned 
E) Restricted

Question 5

Which of the following statements is false regarding government-wide financial statements?

Accepted Answer

A) Government-wide financial statements report a government's activities and financial position as a whole. 
B) The government-wide financial statement approach helps users make long-term evaluations of the financial decisions and stability of the government. 
C) Government-wide financial statements focus on the short-term instead of the long-term. 
D) Government-wide financial statements assess the finances of the government in its entirety, including the year's operating results. 
E) The measurement focus of government-wide financial statements is on all economic resources and utilizes accrual accounting. 
A) Government-wide financial statements report a government's activities and financial position as a whole. 
B) The government-wide financial statement approach helps users make long-term evaluations of the financial decisions and stability of the government. 
C) Government-wide financial statements focus on the short-term instead of the long-term. 
D) Government-wide financial statements assess the finances of the government in its entirety, including the year's operating results. 
E) The measurement focus of government-wide financial statements is on all economic resources and utilizes accrual accounting.

Question 6

When a city holds pension monies for city employees, the monies should be recorded in

Accepted Answer

A) the General Fund. 
B) an Expendable Trust Fund. 
C) a Fiduciary Fund. 
D) an Agency Fund. 
E) a Special Revenue Fund. 
A) the General Fund. 
B) an Expendable Trust Fund. 
C) a Fiduciary Fund. 
D) an Agency Fund. 
E) a Special Revenue Fund.

Question 7

Prepare the journal entry and identify the fund to record the purchase order of two trucks owned by Simple City for $100,000. Identify the fund in which the entry is recorded.

Accepted Answer

The answer of Prepare the journal entry and identify the...

Question 8

What assets would be included in the accounting records of a city's general fund?

Accepted Answer

The assets in the accounting r

Question 9

When a city received a federal grant for providing food and other assistance to the homeless, the money should have been recorded in

Accepted Answer

A) the General Fund. 
B) an Expendable Trust Fund. 
C) a Capital Projects Fund. 
D) an Agency Fund. 
E) a Special Revenue Fund. 
A) the General Fund. 
B) an Expendable Trust Fund. 
C) a Capital Projects Fund. 
D) an Agency Fund. 
E) a Special Revenue Fund.

Question 10

What are the two groups of financial statements mandated by GASB Statement No. 34?
 For each group, what are the names of the individual statements that must be produced?

Accepted Answer

GASB No. 34 requires two groups of finan

Question 11

Which of the following is a governmental fund?

Accepted Answer

A) Enterprise fund. 
B) Internal service fund. 
C) Permanent fund. 
D) Investment trust fund. 
E) Agency fund. 
A) Enterprise fund. 
B) Internal service fund. 
C) Permanent fund. 
D) Investment trust fund. 
E) Agency fund.

Question 12

When should property taxes be recognized under modified accrual accounting?

Accepted Answer

Property taxes should be recog

Question 13

What is the purpose of fund financial statements?

Accepted Answer

To show restrictions on the pl

Question 14

On July 12, 2013, Fred City ordered a new computer at an anticipated cost of $114,400. The computer was received on July 16 with an actual cost of $116,220. Payment was subsequently made on August 15, 2013.
Required:
(A.) Prepare all the required journal entries and identify the type of fund in which each entry was recorded for the Fund Financial Statements.
(B.) Prepare all the required journal entries and identify the type of fund in which each entry was recorded for the Government-Wide Financial Statements.

Accepted Answer

The answer of On July 12, 2013, Fred City ordered...

Question 15

Under modified accrual accounting, revenues should be recognized when they are

Accepted Answer

A) collected. 
B) realizable. 
C) reasonably estimable. 
D) measurable and available. 
E) earned. 
A) collected. 
B) realizable. 
C) reasonably estimable. 
D) measurable and available. 
E) earned.

Question 16

When a city collects fees from citizens who use the public swimming pool, the money should be recorded in

Accepted Answer

A) the General Fund. 
B) an Enterprise Fund. 
C) a Capital Projects Fund. 
D) an Agency Fund. 
E) an Internal Service Fund. 
A) the General Fund. 
B) an Enterprise Fund. 
C) a Capital Projects Fund. 
D) an Agency Fund. 
E) an Internal Service Fund.

Question 17

Which of the following is not a classification of non-exchange transactions?

Accepted Answer

A) Derived tax expenditures. 
B) Voluntary non-exchange transactions. 
C) Government-mandated non-exchange transactions. 
D) Derived tax revenues. 
E) Imposed non-exchange revenues. 
A) Derived tax expenditures. 
B) Voluntary non-exchange transactions. 
C) Government-mandated non-exchange transactions. 
D) Derived tax revenues. 
E) Imposed non-exchange revenues.

Question 18

Bay City received a federal grant to provide health care services to low income mothers and children. When should the revenues be recognized?

Accepted Answer

A) as health care services are provided. 
B) when the awarding of the grant is announced. 
C) when the grant money is received. 
D) at the end of Bay City's fiscal year. 
E) when the grant money is receivable. 
A) as health care services are provided. 
B) when the awarding of the grant is announced. 
C) when the grant money is received. 
D) at the end of Bay City's fiscal year. 
E) when the grant money is receivable.

Question 19

A $5,000,000 bond is issued by Northern City to build a new hospital.
Required:
Prepare the journal entry and identify the fund in which it is recorded to reflect the bond issue.

Accepted Answer

The answer of A $5,000,000 bond is issued by Northern...

Question 20

What is a special revenue fund used to account for?

Accepted Answer

A special revenue fund is used

Which statement is not correct?

What organization is responsible for establishing accounting principles for governmental entities? By whom was this organization established?

Under modified accrual accounting, when should revenues be reported by a governmental-type fund?

Which classifications may be not used for the Fund Balance of governmental funds?

Which of the following statements is false regarding government-wide financial statements?

When a city holds pension monies for city employees, the monies should be recorded in

Prepare the journal entry and identify the fund to record the purchase order of two trucks owned by Simple City for $100,000. Identify the fund in which the entry is recorded.

What assets would be included in the accounting records of a city's general fund?

When a city received a federal grant for providing food and other assistance to the homeless, the money should have been recorded in

What are the two groups of financial statements mandated by GASB Statement No. 34? For each group, what are the names of the individual statements that must be produced?

Which of the following is a governmental fund?

When should property taxes be recognized under modified accrual accounting?

What is the purpose of fund financial statements?

Under modified accrual accounting, revenues should be recognized when they are

When a city collects fees from citizens who use the public swimming pool, the money should be recorded in

Which of the following is not a classification of non-exchange transactions?

Bay City received a federal grant to provide health care services to low income mothers and children. When should the revenues be recognized?

A $5,000,000 bond is issued by Northern City to build a new hospital. Required: Prepare the journal entry and identify the fund in which it is recorded to reflect the bond issue.

What is a special revenue fund used to account for?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations-Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statementsintra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part II

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Exam 11: Accounting for State and Local Governments, Part I

Which statement is not correct?

What organization is responsible for establishing accounting principles for governmental entities? By whom was this organization established?

Under modified accrual accounting, when should revenues be reported by a governmental-type fund?

Which classifications may be not used for the Fund Balance of governmental funds?

Which of the following statements is false regarding government-wide financial statements?

When a city holds pension monies for city employees, the monies should be recorded in

Prepare the journal entry and identify the fund to record the purchase order of two trucks owned by Simple City for $100,000. Identify the fund in which the entry is recorded.

What assets would be included in the accounting records of a city's general fund?

When a city received a federal grant for providing food and other assistance to the homeless, the money should have been recorded in

What are the two groups of financial statements mandated by GASB Statement No. 34? For each group, what are the names of the individual statements that must be produced?

Which of the following is a governmental fund?

When should property taxes be recognized under modified accrual accounting?

What is the purpose of fund financial statements?

Under modified accrual accounting, revenues should be recognized when they are

When a city collects fees from citizens who use the public swimming pool, the money should be recorded in

Which of the following is not a classification of non-exchange transactions?

Bay City received a federal grant to provide health care services to low income mothers and children. When should the revenues be recognized?

A $5,000,000 bond is issued by Northern City to build a new hospital. Required: Prepare the journal entry and identify the fund in which it is recorded to reflect the bond issue.

What is a special revenue fund used to account for?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations-Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statementsintra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part II

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