Question 1

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the _________?

Accepted Answer

A)  Annual required contributions 
B)  Normal cost 
C)  Unfunded actuarial liability 
D)  Net pension obligation 
A)  Annual required contributions 
B)  Normal cost 
C)  Unfunded actuarial liability 
D)  Net pension obligation

Question 2

James McHughes gave the following to the City of Carnesville in order to establish a private-purpose trust: Land - cost, $250,000; fair market value as of the date of the gift, $200,000.
Securities - cost, $800,000; fair market value as of the date of the gift, $900,000.
The amount to be recorded as additions for gifts by the private-purpose trust fund would be:

Accepted Answer

A)  $1,000,000 
B)  $1,100,000 
C)  $1,150,000 
D)  $1,170,000 
A)  $1,000,000 
B)  $1,100,000 
C)  $1,150,000 
D)  $1,170,000

Question 3

Which of the following is true regarding pension (and other employee benefit) trust funds?

Accepted Answer

A)  The actuarially computed Pension Benefit Obligation is reported in the Statement of Fiduciary Net Assets 
B)  While full accrual accounting is used, the terms "additions" and "deductions" are used in the Statement of Changes in Fiduciary Net Assets in lieu of "revenues" and "expenses" 
C)  Both of the above 
D)  Neither of the above 
A)  The actuarially computed Pension Benefit Obligation is reported in the Statement of Fiduciary Net Assets 
B)  While full accrual accounting is used, the terms "additions" and "deductions" are used in the Statement of Changes in Fiduciary Net Assets in lieu of "revenues" and "expenses" 
C)  Both of the above 
D)  Neither of the above

Question 4

Jefferson County maintains a tax agency fund for use by the County Treasurer to record receivables, collections and disbursements of all property tax collections to all units of government in the county. In the year 2009, the following taxes were levied:
$4,200,000 in property taxes were levied for the General Fund, of which 2% are deemed to be uncollectible.
$2,300,000 in property taxes were levied for the school district.
$2,100,000 in property taxes were levied for a village in the county.
Required:
A. Prepare the journal entries for each unit and the Agency Fund to record these levies.
B. The agency fund then collected 92% of the levy for each fund. The Jefferson County General Fund charges 2.5% of collections as a fee for maintaining the agency fund.
Prepare the journal entries for each unit and the Agency Fund to record these collections and fees.

Accepted Answer

None

Question 5

When a government is the sponsor of a multi-government investment pool and accounts for the external portion of those trust assets it is a(n):

Accepted Answer

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

Question 6

Which of the following is true regarding fiduciary funds?

Accepted Answer

A)  Fiduciary funds are included in the government-wide statements but not in the fund statements 
B)  Fiduciary funds are reported by fund type, not as major funds 
C)  Both of the above 
D)  Neither of the above 
A)  Fiduciary funds are included in the government-wide statements but not in the fund statements 
B)  Fiduciary funds are reported by fund type, not as major funds 
C)  Both of the above 
D)  Neither of the above

Question 7

Financial reporting requirements for defined benefit pension plans include all of the following statements and schedules except?

Accepted Answer

A)  Schedule of Funding Progress 
B)  Statement of Changes in Plan Net Assets 
C)  Statement of Plan Net Assets 
D)  Schedule of Employee Contributions 
A)  Schedule of Funding Progress 
B)  Statement of Changes in Plan Net Assets 
C)  Statement of Plan Net Assets 
D)  Schedule of Employee Contributions

Question 8

Property that has been abandoned or property whose owners cannot be found is turned over to the state government until the legal owners can be found is known as escheat property.

Accepted Answer

A) True 
 B)False

Question 9

The City of Sycamore has investments in bonds. These bonds have an amortized cost of $998,000 and a market value of $1,001,000. The market value is quoted and available in the financial press. The original cost of the bonds was $996,000. The par value at maturity will be $1,000,000. The amount at which the investments would be reported is:

Accepted Answer

A)  $ 996,000 
B)  $ 998,000 
C)  $ 1,000,000 
D)  $ 1,001,000 
A)  $ 996,000 
B)  $ 998,000 
C)  $ 1,000,000 
D)  $ 1,001,000

Question 10

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 11

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the normal cost.

Accepted Answer

A) True 
 B)False

Question 12

When a contributor and a government agree that the principle and/or income of trust assets is for the benefit of individuals, organizations or other governments, which fund is formed?

Accepted Answer

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

Question 13

Which type of pension plan may result 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 14

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

Accepted Answer

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

Question 15

Governmental investments in debt securities, in all cases, are to be reported at amortized cost.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true regarding the reporting of investments by state and local governmental units?

Accepted Answer

A)  Investments, for which a determinable fair value can be obtained, are to be reported at fair value 
B)  Realized and unrealized gains and losses are to be combined in the relevant operating statement (for example, the Statement of Changes in Fiduciary Net Assets) 
C)  Both of the above 
D)  Neither of the above 
A)  Investments, for which a determinable fair value can be obtained, are to be reported at fair value 
B)  Realized and unrealized gains and losses are to be combined in the relevant operating statement (for example, the Statement of Changes in Fiduciary Net Assets) 
C)  Both of the above 
D)  Neither of the above

Question 17

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 and plan net assets are small relative to benefits promised 
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 and plan net assets are small relative to benefits promised 
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 18

A county treasurer maintains an investment pool in which several different towns in the county hold investments. Where should the towns' investments be recorded?

Accepted Answer

A)  Investment Trust Fund 
B)  Agency Fund 
C)  Private-purpose Trust Fund 
D)  None of the above 
A)  Investment Trust Fund 
B)  Agency Fund 
C)  Private-purpose Trust Fund 
D)  None of the above

Question 19

Fiduciary Fund activities report in terms of Additions and Deductions.

Accepted Answer

A) True 
 B)False

Question 20

Fiduciary funds include agency funds, private-purpose trust funds, investment trust funds and pension (or other employee benefit) trust funds.

Accepted Answer

A) True 
 B)False

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the _________?

Which of the following is true regarding pension (and other employee benefit) trust funds?

When a government is the sponsor of a multi-government investment pool and accounts for the external portion of those trust assets it is a(n):

Which of the following is true regarding fiduciary funds?

Financial reporting requirements for defined benefit pension plans include all of the following statements and schedules except?

Property that has been abandoned or property whose owners cannot be found is turned over to the state government until the legal owners can be found is known as escheat property.

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?

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the normal cost.

When a contributor and a government agree that the principle and/or income of trust assets is for the benefit of individuals, organizations or other governments, which fund is formed?

Which type of pension plan may result in an unfunded actuarial liability?

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

Governmental investments in debt securities, in all cases, are to be reported at amortized cost.

Which of the following is true regarding the reporting of investments by state and local governmental units?

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

A county treasurer maintains an investment pool in which several different towns in the county hold investments. Where should the towns' investments be recorded?

Fiduciary Fund activities report in terms of Additions and Deductions.

Fiduciary funds include agency funds, private-purpose trust funds, investment trust funds and pension (or other employee benefit) trust funds.

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

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the _________?

Which of the following is true regarding pension (and other employee benefit) trust funds?

When a government is the sponsor of a multi-government investment pool and accounts for the external portion of those trust assets it is a(n):

Which of the following is true regarding fiduciary funds?

Financial reporting requirements for defined benefit pension plans include all of the following statements and schedules except?

Property that has been abandoned or property whose owners cannot be found is turned over to the state government until the legal owners can be found is known as escheat property.

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?

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the normal cost.

When a contributor and a government agree that the principle and/or income of trust assets is for the benefit of individuals, organizations or other governments, which fund is formed?

Which type of pension plan may result in an unfunded actuarial liability?

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

Governmental investments in debt securities, in all cases, are to be reported at amortized cost.

Which of the following is true regarding the reporting of investments by state and local governmental units?

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

A county treasurer maintains an investment pool in which several different towns in the county hold investments. Where should the towns' investments be recorded?

Fiduciary Fund activities report in terms of Additions and Deductions.

Fiduciary funds include agency funds, private-purpose trust funds, investment trust funds and pension (or other employee benefit) trust funds.

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