Question 1

Which of the following is not a type of interfund transaction?

Accepted Answer

A)  Interfund loans 
B)  Interfund services 
C)  Interfund transfers 
D)  All of the above are interfund transactions 
A)  Interfund loans 
B)  Interfund services 
C)  Interfund transfers 
D)  All of the above are interfund transactions

Question 2

Contrast the accounting and reporting of Private-purpose Trust Funds and Permanent Funds.

Accepted Answer

Private-purpose trust funds use the econ

Question 3

Investment Trust Funds are restricted to:

Accepted Answer

A)  External investment pools 
B)  Open-end mutual funds 
C)  Debt securities 
D)  All the above 
A)  External investment pools 
B)  Open-end mutual funds 
C)  Debt securities 
D)  All the above

Question 4

Governments offering postemployment benefits to their retired employees must present two financial statements related to their plans: the Statement of Plan Net Assets and the Statement of Changes in Plan Net Assets, as well as additional required supplementary information.

Accepted Answer

A) True 
 B)False

Question 5

Reporting for Defined Benefit Pension Plans require two financial statements plus two schedules. What are the required statements?

Accepted Answer

A)  Statement of Revenues, Expenses and Changes in Net Assets and Statement of Net Assets 
B)  Statement of Activity and Balance Sheet 
C)  Statement of Plan Net Assets and Statement of Changes in Plan Net Assets 
D)  None of the above 
A)  Statement of Revenues, Expenses and Changes in Net Assets and Statement of Net Assets 
B)  Statement of Activity and Balance Sheet 
C)  Statement of Plan Net Assets and Statement of Changes in Plan Net Assets 
D)  None of the above

Question 6

Financial reporting requirements for a defined benefit pension plan includes a schedule of employee contributions.

Accepted Answer

A) True 
 B)False

Question 7

An endowment to provide scholarships would most likely be accounted for in which of the following fund types?

Accepted Answer

A)  Agency Fund 
B)  Investment Trust Fund 
C)  Private-Purpose Trust Fund 
D)  None of the Above 
A)  Agency Fund 
B)  Investment Trust Fund 
C)  Private-Purpose Trust Fund 
D)  None of the Above

Question 8

The Accrual Basis and Economic Resource Focus are used for Private-Purpose, Investment Trust and Pension Funds.

Accepted Answer

A) True 
 B)False

Question 9

Defined contribution plans are required to pay retired employees a certain amount regardless of the amount contributed to the plan.

Accepted Answer

A) True 
 B)False

Question 10

An endowment that is for the benefit of individuals and not the government controlling the funds, should be accounted for using a private-purpose trust fund.

Accepted Answer

A) True 
 B)False

Question 11

What is the correct journal entry for a Tax Agency Fund to record tax levies of other governments certified to it?

Accepted Answer

A)  Taxes Receivable - Current Revenues Control 
B)  Taxes Receivable - Current Due from Other Governments 
C)  Taxes Receivable Transfer Out 
D)  Taxes Receivable for Other Governments Due to Other Governments 
A)  Taxes Receivable - Current Revenues Control 
B)  Taxes Receivable - Current Due from Other Governments 
C)  Taxes Receivable Transfer Out 
D)  Taxes Receivable for Other Governments Due to Other Governments

Question 12

The tax agency fund of Fulton County collected $6,000,000 for a school district, $3,000,000 for the county general fund and $4,000,000 for a municipality. County general fund employees handle the collections and a 3 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)  $2,910,000 
B)  $3,000,000 
C)  $3,090,000 
D)  $3,300,000 
A)  $2,910,000 
B)  $3,000,000 
C)  $3,090,000 
D)  $3,300,000

Question 13

Governmental investments in equity securities that have a determinable fair value are to be reported at fair value and any unrealized gains and losses are to be reported separately from realized gains and losses in the governmental operating statements.

Accepted Answer

A) True 
 B)False

Question 14

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 15

GASB Standards require that IRS 457 Deferred Compensation Plans, if reported, be reported as pension trust funds.

Accepted Answer

A) True 
 B)False

Question 16

______ 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 17

Which of the following is not true regarding pension accounting and reporting?

Accepted Answer

A)  Local governments include only the pension plans for which it is trustee in pension trust funds Statement of Fiduciary Net Assets 
B)  The pension trust fund Statement of Fiduciary Net Assets reflects the accrued actuarial liability (the excess of the projected benefit obligation over the net assets available for benefits) 
C)  Pension investments are recorded at fair (market) value 
D)  None of the above; all are true 
A)  Local governments include only the pension plans for which it is trustee in pension trust funds Statement of Fiduciary Net Assets 
B)  The pension trust fund Statement of Fiduciary Net Assets reflects the accrued actuarial liability (the excess of the projected benefit obligation over the net assets available for benefits) 
C)  Pension investments are recorded at fair (market) value 
D)  None of the above; all are true

Question 18

Agency funds report no revenues, expenses or fund equity accounts.

Accepted Answer

A) True 
 B)False

Question 19

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 20

Escheat property, often collected by the state is to be reported either in a private-purpose trust fund or in the fund to which the property ultimately escheats.

Accepted Answer

A) True 
 B)False

Which of the following is not a type of interfund transaction?

Contrast the accounting and reporting of Private-purpose Trust Funds and Permanent Funds.

Investment Trust Funds are restricted to:

Governments offering postemployment benefits to their retired employees must present two financial statements related to their plans: the Statement of Plan Net Assets and the Statement of Changes in Plan Net Assets, as well as additional required supplementary information.

Reporting for Defined Benefit Pension Plans require two financial statements plus two schedules. What are the required statements?

Financial reporting requirements for a defined benefit pension plan includes a schedule of employee contributions.

An endowment to provide scholarships would most likely be accounted for in which of the following fund types?

The Accrual Basis and Economic Resource Focus are used for Private-Purpose, Investment Trust and Pension Funds.

Defined contribution plans are required to pay retired employees a certain amount regardless of the amount contributed to the plan.

An endowment that is for the benefit of individuals and not the government controlling the funds, should be accounted for using a private-purpose trust fund.

What is the correct journal entry for a Tax Agency Fund to record tax levies of other governments certified to it?

Governmental investments in equity securities that have a determinable fair value are to be reported at fair value and any unrealized gains and losses are to be reported separately from realized gains and losses in the governmental operating statements.

In an agency fund, assets are equal to:

GASB Standards require that IRS 457 Deferred Compensation Plans, if reported, be reported as pension trust 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.

Which of the following is not true regarding pension accounting and reporting?

Agency funds report no revenues, expenses or fund equity accounts.

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

Escheat property, often collected by the state is to be reported either in a private-purpose trust fund or in the fund to which the property ultimately escheats.

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

Filters

Exam 7: Fiduciary Trust Funds

Which of the following is not a type of interfund transaction?

Contrast the accounting and reporting of Private-purpose Trust Funds and Permanent Funds.

Investment Trust Funds are restricted to:

Governments offering postemployment benefits to their retired employees must present two financial statements related to their plans: the Statement of Plan Net Assets and the Statement of Changes in Plan Net Assets, as well as additional required supplementary information.

Reporting for Defined Benefit Pension Plans require two financial statements plus two schedules. What are the required statements?

Financial reporting requirements for a defined benefit pension plan includes a schedule of employee contributions.

An endowment to provide scholarships would most likely be accounted for in which of the following fund types?

The Accrual Basis and Economic Resource Focus are used for Private-Purpose, Investment Trust and Pension Funds.

Defined contribution plans are required to pay retired employees a certain amount regardless of the amount contributed to the plan.

An endowment that is for the benefit of individuals and not the government controlling the funds, should be accounted for using a private-purpose trust fund.

What is the correct journal entry for a Tax Agency Fund to record tax levies of other governments certified to it?

Governmental investments in equity securities that have a determinable fair value are to be reported at fair value and any unrealized gains and losses are to be reported separately from realized gains and losses in the governmental operating statements.

In an agency fund, assets are equal to:

GASB Standards require that IRS 457 Deferred Compensation Plans, if reported, be reported as pension trust 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.

Which of the following is not true regarding pension accounting and reporting?

Agency funds report no revenues, expenses or fund equity accounts.

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

Escheat property, often collected by the state is to be reported either in a private-purpose trust fund or in the fund to which the property ultimately escheats.

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

Filters