Question 1

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 2

Which of the following funds is most likely created with an endowed gift?

Accepted Answer

A)  Enterprise Fund. 
B)  Internal Service Fund. 
C)  Debt Service Fund. 
D)  Capital Projects Fund. 
E)  Permanent Fund. 
A)  Enterprise Fund. 
B)  Internal Service Fund. 
C)  Debt Service Fund. 
D)  Capital Projects Fund. 
E)  Permanent Fund.

Question 3

On January 1, 2013, Wakefield City purchased $40,000 office supplies. 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, 2013, Wakefield City purchased...

Question 4

The Town of Anthrop has recorded the receipt of a $10,000 grant to make its Town Hall handicapped-accessible. The town now spends $10,000 to make the Town Hall handicapped-accessible.
Required:
Prepare the journal entry (or entries), and identify the fund for recording, to record that the town spends $10,000 of a grant it received to make the Town Hall handicapped-accessible.

Accepted Answer

The answer of The Town of Anthrop has recorded the...

Question 5

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 6

Which of the following statements is true regarding fund financial statements?

Accepted Answer

A)  Fund financial statements report a government's activities and financial position as a whole. 
B)  Fund financial statements should tell the amount spent this year on such services as public safety, education, health and sanitation, and the construction of a new road. 
C)  Fund financial statements utilize the accrual basis of accounting much like any for-profit entity. 
D)  Fund financial statements help to determine whether the government's overall financial position improved or deteriorated. 
E)  Fund financial statements report all assets and liabilities in a way comparable to business-type accounting. 
A)  Fund financial statements report a government's activities and financial position as a whole. 
B)  Fund financial statements should tell the amount spent this year on such services as public safety, education, health and sanitation, and the construction of a new road. 
C)  Fund financial statements utilize the accrual basis of accounting much like any for-profit entity. 
D)  Fund financial statements help to determine whether the government's overall financial position improved or deteriorated. 
E)  Fund financial statements report all assets and liabilities in a way comparable to business-type accounting.

Question 7

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 8

Generally, annual budgets are recorded within the following funds:

Accepted Answer

A)  General fund and special revenue funds. 
B)  Capital projects funds and debt service fund. 
C)  Enterprise funds and internal service funds. 
D)  General Fund and Pension Trust Fund. 
E)  Agency Funds and General Fund. 
A)  General fund and special revenue funds. 
B)  Capital projects funds and debt service fund. 
C)  Enterprise funds and internal service funds. 
D)  General Fund and Pension Trust Fund. 
E)  Agency Funds and General Fund.

Question 9

What is a special revenue fund used to account for?

Accepted Answer

A special revenue fund is used

Question 10

Special Revenue funds are

Accepted Answer

A)  Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. 
B)  Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations. 
C)  Funds used to account for monies held by the government in a trustee capacity. 
D)  Funds used to account for all financial resources except those required to be accounted for in another fund. 
E)  Funds used to account for revenues that have been legally restricted as to expenditure. 
A)  Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. 
B)  Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations. 
C)  Funds used to account for monies held by the government in a trustee capacity. 
D)  Funds used to account for all financial resources except those required to be accounted for in another fund. 
E)  Funds used to account for revenues that have been legally restricted as to expenditure.

Question 11

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 12

On June 14, 2013, 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.
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, 2013, Fred City agreed...

Question 13

For a government, what kinds of operations are accounted for using a proprietary fund? Give three examples.

Accepted Answer

A proprietary fund is used to account fo

Question 14

What is the definition of the term fund?

Accepted Answer

The term fund is defined as a

Question 15

For each of the following transactions, select the area of accounting records in which an entry will be recorded.
(A) General Fund only.
(B) Governmental Activities only.
(C) General Fund and Governmental Activities.
(D) General Fund and Debt Service Fund.
(E) Capital Projects Fund and Governmental Activities.
(F) Debt Service Fund and Governmental Activities.
(G) Special Revenue Fund and Governmental Activities.
___ (1.) The city council adopts an annual budget for the General Fund.
___ (2.) Property taxes are levied.
___ (3.) Computers are ordered for the fire department.
___ (4.) A transfer of funds is made from the General Fund to the Debt Service Fund.
___ (5.) The principal and interest of a bond are paid.
___ (6.) A building is acquired for the police department, and renovations begin immediately.
___ (7.) Depreciation on fire trucks is recorded.
___ (8.) Citizens are assessed for a street lighting project that has been legally restricted for those citizens.
___ (9.) A grant is received to landscape tree-lined areas beside city-owned streets.
___ (10.) The city spends grant money received in (9.) above and landscapes the tree-lined areas beside the streets for which the grant money was received.

Accepted Answer

(1) A; (2) C; (3) A;

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

Salaries and wages that have been earned by governmental employees that have not yet been paid are recorded in the general fund as:

Accepted Answer

A)  An expenditure. 
B)  An encumbrance. 
C)  An appropriation. 
D)  An expense. 
E)  An investment. 
A)  An expenditure. 
B)  An encumbrance. 
C)  An appropriation. 
D)  An expense. 
E)  An investment.

Question 18

When a city received a federal grant for books to be purchased for a library, the money should have been recorded in

Accepted Answer

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

Question 19

When should property taxes be recognized under modified accrual accounting?

Accepted Answer

Property taxes should be recog

Question 20

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.

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

Which of the following funds is most likely created with an endowed gift?

On January 1, 2013, Wakefield City purchased $40,000 office supplies. 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.)

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

Which of the following statements is true regarding fund financial statements?

Which of the following is a fiduciary fund?

Generally, annual budgets are recorded within the following funds:

What is a special revenue fund used to account for?

Special Revenue funds are

For a government, what kinds of operations are accounted for using a proprietary fund? Give three examples.

What is the definition of the term fund?

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

Salaries and wages that have been earned by governmental employees that have not yet been paid are recorded in the general fund as:

When a city received a federal grant for books to be purchased for a library, the money should have been recorded in

When should property taxes be recognized under modified accrual accounting?

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

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 Statements Intra-Entity Asset Transactions

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

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for Estates and Trusts

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Exam 16: Accounting for State and Local Governments

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

Which of the following funds is most likely created with an endowed gift?

On January 1, 2013, Wakefield City purchased $40,000 office supplies. 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.)

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

Which of the following statements is true regarding fund financial statements?

Which of the following is a fiduciary fund?

Generally, annual budgets are recorded within the following funds:

What is a special revenue fund used to account for?

Special Revenue funds are

For a government, what kinds of operations are accounted for using a proprietary fund? Give three examples.

What is the definition of the term fund?

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

Salaries and wages that have been earned by governmental employees that have not yet been paid are recorded in the general fund as:

When a city received a federal grant for books to be purchased for a library, the money should have been recorded in

When should property taxes be recognized under modified accrual accounting?

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

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 Statements Intra-Entity Asset Transactions

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

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Worldwide Accounting Diversity and International Accounting Standards

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for Estates and Trusts

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