Question 1

Which statement is not correct?

Accepted Answer

A)  Governmental funds account for expenditures of financial resources rather than matching revenues and expenses. 
B)  The Fund Balance Reserved for Encumbrances account is not closed at the end of a fiscal year. 
C)  Revenues from licenses and permit fees are recognized when received in cash if using the modified accrual basis of accounting for governmental funds. 
D)  A fund is an independent accounting entity composed of cash and other financial resources, segregated for the purpose of carrying on specific activities and objectives. 
E)  Commitments for purchase orders are recorded as expenses. 
A)  Governmental funds account for expenditures of financial resources rather than matching revenues and expenses. 
B)  The Fund Balance Reserved for Encumbrances account is not closed at the end of a fiscal year. 
C)  Revenues from licenses and permit fees are recognized when received in cash if using the modified accrual basis of accounting for governmental funds. 
D)  A fund is an independent accounting entity composed of cash and other financial resources, segregated for the purpose of carrying on specific activities and objectives. 
E)  Commitments for purchase orders are recorded as expenses.

Question 2

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)  General Fund. 
E)  Capital Projects Fund. 
A)  Special revenue funds. 
B)  Internal service funds. 
C)  Debt service funds. 
D)  General Fund. 
E)  Capital Projects Fund.

Question 3

What is the primary difference between monies accounted for in the general fund and monies accounted for in the special revenue fund?

Accepted Answer

Monies in the special revenue

Question 4

A $5,000,000 bond is issued by Northern City to build a new hospital.
Required:
Prepare the journal entry and identify the fund in which it is recorded to reflect the bond issue.

Accepted Answer

The answer of A $5,000,000 bond is issued by Northern...

Question 5

Which of the following is a governmental fund?

Accepted Answer

A)  Enterprise fund. 
B)  Internal service fund. 
C)  Permanent fund. 
D)  Investment trust fund. 
E)  Agency fund. 
A)  Enterprise fund. 
B)  Internal service fund. 
C)  Permanent fund. 
D)  Investment trust fund. 
E)  Agency fund.

Question 6

What is the purpose of fund financial statements?

Accepted Answer

To show restrictions on the pl

Question 7

What is the purpose of government-wide financial statements?

Accepted Answer

To show longer-term focus beca

Question 8

The Town of Anthrop receives a $10,000 grant to make the Town Hall handicapped-accessible.
Required:
Prepare the journal entry, and identify the fund in which it is recorded, to record the receipt of the grant.

Accepted Answer

The answer of The Town of Anthrop receives a $10,000...

Question 9

When a city holds pension monies for city employees, the monies should be recorded in

Accepted Answer

A)  the General Fund. 
B)  an Expendable Trust Fund. 
C)  a Fiduciary Fund. 
D)  an Agency Fund. 
E)  a Special Revenue Fund. 
A)  the General Fund. 
B)  an Expendable Trust Fund. 
C)  a Fiduciary Fund. 
D)  an Agency Fund. 
E)  a Special Revenue Fund.

Question 10

According to GASB Concepts Statement No. 1, what are the three groups of primary users of external state and local governmental financial reports?

Accepted Answer

A)  The Securities Exchange Commission, the citizenry, and legislative and oversight bodies. 
B)  The Securities Exchange Commission, legislative and oversight bodies, and investors and creditors. 
C)  The Securities Exchange Commission, the citizenry, and investors and creditors. 
D)  The citizenry, legislative and oversight bodies, and investors and creditors. 
E)  The citizenry, management, and the Governmental Accounting Office. 
A)  The Securities Exchange Commission, the citizenry, and legislative and oversight bodies. 
B)  The Securities Exchange Commission, legislative and oversight bodies, and investors and creditors. 
C)  The Securities Exchange Commission, the citizenry, and investors and creditors. 
D)  The citizenry, legislative and oversight bodies, and investors and creditors. 
E)  The citizenry, management, and the Governmental Accounting Office.

Question 11

A city enacted a special tax levy and the money must be used to provide medical services at the municipal hospital. What kind of fund should be used to record the revenues generated by the tax?

Accepted Answer

A special

Question 12

On August 21, 2013, Fred City transferred $100,000 to the School System to cover repairs to a school building.
Required:
Prepare all the required journal entries and identify the fund in which each entry was recorded for the Fund Financial Statements.

Accepted Answer

The answer of On August 21, 2013, Fred City transferred...

Question 13

A city operates a central data processing facility. The expenses of this facility would be accounted for using

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 14

Proprietary 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 15

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

Accepted Answer

Under modified accrual accounting, reven

Question 16

Fiduciary 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 17

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 18

Which classifications may be not used for the Fund Balance of governmental funds?

Accepted Answer

A)  Spendable 
B)  Non-Spendable 
C)  Assigned 
D)  Unassigned 
E)  Restricted 
A)  Spendable 
B)  Non-Spendable 
C)  Assigned 
D)  Unassigned 
E)  Restricted

Which statement is not correct?

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

What is the primary difference between monies accounted for in the general fund and monies accounted for in the special revenue fund?

A $5,000,000 bond is issued by Northern City to build a new hospital. Required: Prepare the journal entry and identify the fund in which it is recorded to reflect the bond issue.

Which of the following is a governmental fund?

What is the purpose of fund financial statements?

What is the purpose of government-wide financial statements?

The Town of Anthrop receives a $10,000 grant to make the Town Hall handicapped-accessible. Required: Prepare the journal entry, and identify the fund in which it is recorded, to record the receipt of the grant.

When a city holds pension monies for city employees, the monies should be recorded in

According to GASB Concepts Statement No. 1, what are the three groups of primary users of external state and local governmental financial reports?

A city enacted a special tax levy and the money must be used to provide medical services at the municipal hospital. What kind of fund should be used to record the revenues generated by the tax?

On August 21, 2013, Fred City transferred $100,000 to the School System to cover repairs to a school building. Required: Prepare all the required journal entries and identify the fund in which each entry was recorded for the Fund Financial Statements.

A city operates a central data processing facility. The expenses of this facility would be accounted for using

Proprietary funds are

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

Fiduciary funds are

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

Which classifications may be not used for the Fund Balance of governmental funds?

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

Filters

Exam 16: Accounting for State and Local Governments

Which statement is not correct?

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

What is the primary difference between monies accounted for in the general fund and monies accounted for in the special revenue fund?

A $5,000,000 bond is issued by Northern City to build a new hospital. Required: Prepare the journal entry and identify the fund in which it is recorded to reflect the bond issue.

Which of the following is a governmental fund?

What is the purpose of fund financial statements?

What is the purpose of government-wide financial statements?

The Town of Anthrop receives a $10,000 grant to make the Town Hall handicapped-accessible. Required: Prepare the journal entry, and identify the fund in which it is recorded, to record the receipt of the grant.

When a city holds pension monies for city employees, the monies should be recorded in

According to GASB Concepts Statement No. 1, what are the three groups of primary users of external state and local governmental financial reports?

A city enacted a special tax levy and the money must be used to provide medical services at the municipal hospital. What kind of fund should be used to record the revenues generated by the tax?

On August 21, 2013, Fred City transferred $100,000 to the School System to cover repairs to a school building. Required: Prepare all the required journal entries and identify the fund in which each entry was recorded for the Fund Financial Statements.

A city operates a central data processing facility. The expenses of this facility would be accounted for using

Proprietary funds are

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

Fiduciary funds are

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

Which classifications may be not used for the Fund Balance of governmental funds?

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

Filters