Question 1

What are the four fiduciary fund types?

Accepted Answer

Investment trust funds, private-purpose trust funds, pension trust funds, and agency funds.

Question 2

What are the two proprietary fund types? (1) Internal service funds.
(2) Investment trust funds.
(3) Enterprise funds.
(4) Agency funds.

Accepted Answer

A)  1 and 2. 
B)  2 and 3. 
C)  1 and 3. 
D)  2 and 4. 
E)  1 and 4. 
A)  1 and 2. 
B)  2 and 3. 
C)  1 and 3. 
D)  2 and 4. 
E)  1 and 4. C

Question 3

Simple City has recorded the purchase order of two trucks for a total of $100,000.
Prepare the journal entries to reflect that the two trucks have been received with an invoice amount of $105,000.This invoice has been approved but not yet paid.Identify the fund in which the entries are recorded.

Accepted Answer

The answer of Simple City has recorded the purchase order...

Question 4

For governmental entities, the accrual basis of accounting is used for:

Accepted Answer

A)  Special revenue funds. 
B)  Internal service funds. 
C)  Debt service funds. 
D)  The general fund. 
E)  Capital projects funds. 
A)  Special revenue funds. 
B)  Internal service funds. 
C)  Debt service funds. 
D)  The general fund. 
E)  Capital projects funds.

Question 5

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 6

Which of the following is not a true statement regarding revenues from various types of nonexchange transactions?

Accepted Answer

A)  Derived tax revenues occur as a result of sales and or income tax. 
B)  Imposed nonexchange revenues consist of only fines and penalties assess by the governing agency. 
C)  Government mandated nonexchange transactions includes grants from the federal government to the local public school system for a free lunch program. 
D)  Voluntary nonexchange transactions can originate from a governmental agency or private citizen organization. 
E)  Imposed nonexchange transactions revenue recognition is made in the time period when the resulting resources are required to be used or in the first period in which use is permitted. 
A)  Derived tax revenues occur as a result of sales and or income tax. 
B)  Imposed nonexchange revenues consist of only fines and penalties assess by the governing agency. 
C)  Government mandated nonexchange transactions includes grants from the federal government to the local public school system for a free lunch program. 
D)  Voluntary nonexchange transactions can originate from a governmental agency or private citizen organization. 
E)  Imposed nonexchange transactions revenue recognition is made in the time period when the resulting resources are required to be used or in the first period in which use is permitted.

Question 7

Government-wide financial statements benefit users by allowing them to do all of the following except:

Accepted Answer

A)  Determine whether the government's overall financial position improved or deteriorated during the reporting period. 
B)  Understand the cost of providing services to the citizenry. 
C)  See how the government finances its programs. 
D)  Identify the government official responsible for managing each fund. 
E)  Understand the extent to which the government has invested in capital assets. 
A)  Determine whether the government's overall financial position improved or deteriorated during the reporting period. 
B)  Understand the cost of providing services to the citizenry. 
C)  See how the government finances its programs. 
D)  Identify the government official responsible for managing each fund. 
E)  Understand the extent to which the government has invested in capital assets.

Question 8

What are the five types of governmental funds?

Accepted Answer

The five types of governmental

Question 9

How do the balance sheet and statement of revenues, expenditures, and changes in fund balances of governmental funds differ from the financial statement presentation for the governmental activities in the government-wide statement of net assets and statement of activities? (1) Internal service funds are not included in the fund financial statements of governmental funds but could be reported in the governmental activities of government-wide financial statements.
(2) The economic resources measurement basis is used for fund financial statements of governmental funds and the current financial resources measurement basis is used for governmental activities in the government-wide financial statements.
(3) Modified accrual accounting is used for fund financial statements of governmental funds to time revenues and expenditures and accrual accounting is used for governmental activities of government-wide financial statements.
(4) The financial statements of governmental funds for fund financial statements are the same as governmental activities in government-wide financial statements but with different titles of the financial statements.

Accepted Answer

A)  1 and 2. 
B)  2, 3, and 4. 
C)  1, 2 and 3. 
D)  1 and 3. 
E)  1, 2, 3, and 4. 
A)  1 and 2. 
B)  2, 3, and 4. 
C)  1, 2 and 3. 
D)  1 and 3. 
E)  1, 2, 3, and 4.

Question 10

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

Accepted Answer

Under modified accrual accounting, reven

Question 11

On July 1, 2018, Fred City ordered $1,500 of office supplies.They were to be paid for out of the general fund.
Required:
(A) What journal entry was required for the governmental fund financial statements?
(B) What journal entry was required for the government-wide financial statements?

Accepted Answer

(A) For the governmental fund financial

Question 12

Under modified accrual accounting, when should an expenditure be recorded to recognize interest on long-term debt?

Accepted Answer

A)  At the end of each accounting period. 
B)  When payment is due within one fiscal year. 
C)  When it reduces current financial resources. 
D)  When cash is available to pay the interest. 
E)  When the interest is incurred. 
A)  At the end of each accounting period. 
B)  When payment is due within one fiscal year. 
C)  When it reduces current financial resources. 
D)  When cash is available to pay the interest. 
E)  When the interest is incurred.

Question 13

Which type of account would you assign a gift of $1.5 million dollars with restriction indicating that only the future income generated from this balance can be used by the government?

Accepted Answer

A)  Committed 
B)  Nonspendable 
C)  Assigned 
D)  Unassigned 
E)  Restricted 
A)  Committed 
B)  Nonspendable 
C)  Assigned 
D)  Unassigned 
E)  Restricted

Question 14

In governmental accounting, what term is used for a decrease in financial resources?

Accepted Answer

The approp

Question 15

Which of the following is a fiduciary fund?

Accepted Answer

A)  Pension trust fund. 
B)  Debt service fund. 
C)  Permanent fund. 
D)  Enterprise fund. 
E)  Capital projects fund. 
A)  Pension trust fund. 
B)  Debt service fund. 
C)  Permanent fund. 
D)  Enterprise fund. 
E)  Capital projects fund.

Question 16

On January 1, 2018, Wakefield City purchased office supplies for $40,000.During the year, $35,000 of these supplies were used.
Required:
Record the journal entries for these transactions using the purchases method.(Disregard the encumbrance entries.)

Accepted Answer

The answer of On January 1, 2018, Wakefield City purchased...

Question 17

What is the purpose of fund financial statements?

Accepted Answer

The purpose of the fund financ

Question 18

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

Accepted Answer

A)  Collected. 
B)  Realizable and estimable. 
C)  Reasonably estimable. 
D)  Measurable and available to be used. 
E)  Earned and collected. 
A)  Collected. 
B)  Realizable and estimable. 
C)  Reasonably estimable. 
D)  Measurable and available to be used. 
E)  Earned and collected.

Question 19

On June 14, 2018, Fred City agreed to transfer cash of $52,000 from the general fund to provide permanent financing for a municipal swimming pool that will be viewed as an enterprise fund.The cash was transferred on June 30, 2018.
Required:
(A) Prepare all the required journal entries and identify the fund in which each entry was recorded for the fund financial statements.
(B) Prepare all the required journal entries and identify the type of activity for the government-wide financial statements.

Accepted Answer

The answer of On June 14, 2018, Fred City agreed...

Question 20

On August 21, 2018, Fred City transferred $100,000 from one fund to another fund to cover major repairs to the town hall building.
Required:
Prepare all the required journal entries and identify the fund in which each entry was recorded for the governmental fund financial statements.

Accepted Answer

The answer of On August 21, 2018, Fred City transferred...

Exam 16: Accounting for State and Local Governments, Part I

What are the four fiduciary fund types?

What are the two proprietary fund types? (1) Internal service funds. (2) Investment trust funds. (3) Enterprise funds. (4) Agency funds.

Simple City has recorded the purchase order of two trucks for a total of $100,000. Prepare the journal entries to reflect that the two trucks have been received with an invoice amount of $105,000.This invoice has been approved but not yet paid.Identify the fund in which the entries are recorded.

For governmental entities, the accrual basis of accounting is used for:

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

Which of the following is not a true statement regarding revenues from various types of nonexchange transactions?

Government-wide financial statements benefit users by allowing them to do all of the following except:

What are the five types of governmental funds?

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

On July 1, 2018, Fred City ordered $1,500 of office supplies.They were to be paid for out of the general fund. Required: (A) What journal entry was required for the governmental fund financial statements? (B) What journal entry was required for the government-wide financial statements?

Under modified accrual accounting, when should an expenditure be recorded to recognize interest on long-term debt?

Which type of account would you assign a gift of $1.5 million dollars with restriction indicating that only the future income generated from this balance can be used by the government?

In governmental accounting, what term is used for a decrease in financial resources?

Which of the following is a fiduciary fund?

On January 1, 2018, Wakefield City purchased office supplies for $40,000.During the year, $35,000 of these supplies were used. Required: Record the journal entries for these transactions using the purchases method.(Disregard the encumbrance entries.)

What is the purpose of fund financial statements?

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

On August 21, 2018, Fred City transferred $100,000 from one fund to another fund to cover major repairs to the town hall building. Required: Prepare all the required journal entries and identify the fund in which each entry was recorded for the governmental fund financial statements.

The Equity Method of Accounting for Investments

A: the Equity Method of Accounting for Investments

Consolidation of Financial Information

A: Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

A: Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

A: Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

A: Consolidated Financial Statements Intra-Entity Asset Transactions

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

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

Consolidated Financial Statements - Ownership Patterns and Income Taxes

A: Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

A: Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

A: Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

A: Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

A: Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

A: Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

A: Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

A: Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

A: Partnerships: Termination and Liquidation

A: Accounting for State and Local Governments, Part I

Accounting for State and Local Governments, Part II

A: Accounting for State and Local Governments, Part II

Accounting for Not-For-Profit Entities

A: Accounting for Not-For-Profit Entities

Accounting for Estates and Trusts

A: Accounting for Estates and Trusts

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