Question 1

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 2

The "external portion" of an investment trust fund relates to.....

Accepted Answer

A)  the portion of the investment that legally belongs to the sponsoring government. 
B)  the portion of the investment that is allocated among the sponsoring government's funds. 
C)  the portion of the investment that belongs to other participating governments. 
D)  "External portion" relates only to agency funds, not investment trust funds. 
A)  the portion of the investment that legally belongs to the sponsoring government. 
B)  the portion of the investment that is allocated among the sponsoring government's funds. 
C)  the portion of the investment that belongs to other participating governments. 
D)  "External portion" relates only to agency funds, not investment trust funds.

Question 3

GASB Statement No.52 requires endowments with investment real estate to report those assets at:

Accepted Answer

A)  Historical cost 
B)  Fair market value 
C)  Historical cost net of related debt 
D)  Market value net of related debt 
A)  Historical cost 
B)  Fair market value 
C)  Historical cost net of related debt 
D)  Market value net of related debt

Question 4

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,a private-purpose trust has been formed.

Accepted Answer

A) True 
 B)False

Question 5

The operations of agency funds will be included in which of the following statements?

Accepted Answer

A)  The fiduciary funds Statement of Fund Net Assets 
B)  The Statement of Changes in Net Assets 
C)  The Government-wide Financial Statements 
D)  All of the above 
A)  The fiduciary funds Statement of Fund Net Assets 
B)  The Statement of Changes in Net Assets 
C)  The Government-wide Financial Statements 
D)  All of the above

Question 6

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

Accepted Answer

A)  Investments in all securities with determinable fair values (including bonds held to maturity) are to be reported at fair value. 
B)  Realized gains and losses are to be reported separately from unrealized gains and losses in the Statement of Changes in Fiduciary Net Assets. 
C)  Both of the above. 
D)  Neither A nor B above. 
A)  Investments in all securities with determinable fair values (including bonds held to maturity) are to be reported at fair value. 
B)  Realized gains and losses are to be reported separately from unrealized gains and losses in the Statement of Changes in Fiduciary Net Assets. 
C)  Both of the above. 
D)  Neither A nor B above.

Question 7

______ 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 8

Fiduciary funds are reported in the government-wide financial statements.

Accepted Answer

A) True 
 B)False

Question 9

James McHughes gave the following to the City of Carnesville in order to establish a private-purpose trust:
Land - cost,$500,000; fair market value as of the date of the gift,$400,000.
Securities - cost,$1,600,000; fair market value as of the date of the gift,$1,800,000.
The amount to be recorded as additions for gifts by the private-purpose trust fund would be:

Accepted Answer

A)  $2,000,000. 
B)  $2,300,000 
C)  $2,200,000. 
D)  $2,000,000 
A)  $2,000,000. 
B)  $2,300,000 
C)  $2,200,000. 
D)  $2,000,000

Question 10

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 11

The City of Springfield has three pension plans: a locally administered police plan for which it is trustee,a statewide cost sharing plan,and a statewide agency plan.The City would include in its CAFR financial statements for:

Accepted Answer

A)  All three plans. 
B)  The locally administered plan plus the statewide agency plan. 
C)  Both statewide plans. 
D)  The locally administered plan only. 
A)  All three plans. 
B)  The locally administered plan plus the statewide agency plan. 
C)  Both statewide plans. 
D)  The locally administered plan only.

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,an investment trust has been formed.

Accepted Answer

A) True 
 B)False

Question 13

What are the four types of fiduciary funds and the function of each?

Accepted Answer

Agency Funds: Agency Funds account for a

Question 14

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 15

How are Fiduciary Funds presented in the Government-wide Financial Statements?

Accepted Answer

A)  Combined with Internal Service Funds. 
B)  Combined with Business activities. 
C)  Combined with governmental activities. 
D)  None of the Above. 
A)  Combined with Internal Service Funds. 
B)  Combined with Business activities. 
C)  Combined with governmental activities. 
D)  None of the Above.

Question 16

Which of the following is true regarding agency funds?

Accepted Answer

A)  Agency funds report assets and liabilities, but not net assets, revenues or expenses. 
B)  Agency funds are often used to account for property tax collections by county governments for other governments. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Agency funds report assets and liabilities, but not net assets, revenues or expenses. 
B)  Agency funds are often used to account for property tax collections by county governments for other governments. 
C)  Both of the above. 
D)  Neither of the above.

Question 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 20

Proprietary funds record unfunded pension obligations as a fund liability.

Accepted Answer

A) True 
 B)False

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

The "external portion" of an investment trust fund relates to.....

GASB Statement No.52 requires endowments with investment real estate to report those assets at:

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,a private-purpose trust has been formed.

The operations of agency funds will be included in which of the following statements?

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

______ 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 reported in the government-wide financial statements.

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.

The City of Springfield has three pension plans: a locally administered police plan for which it is trustee,a statewide cost sharing plan,and a statewide agency plan.The City would include in its CAFR financial statements for:

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,an investment trust has been formed.

What are the four types of fiduciary funds and the function of each?

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.

How are Fiduciary Funds presented in the Government-wide Financial Statements?

Which of the following is true regarding agency funds?

Investment Trust Funds are restricted to:

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

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?

Proprietary funds record unfunded pension obligations as a fund liability.

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

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

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Exam 7: Fiduciary Trustfunds

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

The "external portion" of an investment trust fund relates to.....

GASB Statement No.52 requires endowments with investment real estate to report those assets at:

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,a private-purpose trust has been formed.

The operations of agency funds will be included in which of the following statements?

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

______ 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 reported in the government-wide financial statements.

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.

The City of Springfield has three pension plans: a locally administered police plan for which it is trustee,a statewide cost sharing plan,and a statewide agency plan.The City would include in its CAFR financial statements for:

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,an investment trust has been formed.

What are the four types of fiduciary funds and the function of each?

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.

How are Fiduciary Funds presented in the Government-wide Financial Statements?

Which of the following is true regarding agency funds?

Investment Trust Funds are restricted to:

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

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?

Proprietary funds record unfunded pension obligations as a fund liability.

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

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters