Question 1

Which of the following interfund transactions will be reported as a separate line item in the operating statement of a General Fund?

Accepted Answer

A) short-term interfund loan received 
B) transfer out to a debt service fund 
C) reimbursement received from a special revenue fund 
D) long-term interfund loan received 
A) short-term interfund loan received 
B) transfer out to a debt service fund 
C) reimbursement received from a special revenue fund 
D) long-term interfund loan received

Question 2

In the statement of revenues,expenditures,and changes in fund balances,a transfer received by the Debt Service Fund from the General Fund should be reported by the Debt Service Fund as a:

Accepted Answer

A) transfer in,in the other financing sources/uses section 
B) negative expenditure,in the expenditure section 
C) direct addition to equity,in the fund balance section 
D) reimbursement,in the revenue section 
A) transfer in,in the other financing sources/uses section 
B) negative expenditure,in the expenditure section 
C) direct addition to equity,in the fund balance section 
D) reimbursement,in the revenue section

Question 3

When counties receive cash advances under grants from the state,what account should they credit?

Accepted Answer

A) grants receivable 
B) revenues - grants 
C) advance on state grants 
D) grant expenditures 
A) grants receivable 
B) revenues - grants 
C) advance on state grants 
D) grant expenditures

Question 4

When making its year-end entries,the city's accountant determines that $20,000 of the city's remaining current property taxes receivable would not be collected within the first sixty days of the next fiscal year,but would be collectible later in that year.At year-end,the city should report a $20,000 credit to:

Accepted Answer

A) revenues - property taxes 
B) property taxes receivable - delinquent 
C) deferred revenues - property taxes 
D) allowance for uncollectible taxes 
A) revenues - property taxes 
B) property taxes receivable - delinquent 
C) deferred revenues - property taxes 
D) allowance for uncollectible taxes

Question 5

A city paid $40,000 for police cars with the expectation that they would have a useful life of four years.After three years,the city sold the cars for $3,000.How should the city account for the sale in the General Fund?

Accepted Answer

A) debit cash for $3,000,debit accumulated depreciation for $30,000,debit loss on sale of general fixed assets for $7,000,and credit equipment for $40,000. 
B) debit cash for $3,000 and credit other financing source--sale of capital assets for $3,000. 
C) debit cash for $3,000,debit loss on sale of general fixed assets for $37,000,and credit equipment for $40,000. 
D) debit cash for $3,000,debit other financing uses for $37,000,and credit equipment for $40,000. 
A) debit cash for $3,000,debit accumulated depreciation for $30,000,debit loss on sale of general fixed assets for $7,000,and credit equipment for $40,000. 
B) debit cash for $3,000 and credit other financing source--sale of capital assets for $3,000. 
C) debit cash for $3,000,debit loss on sale of general fixed assets for $37,000,and credit equipment for $40,000. 
D) debit cash for $3,000,debit other financing uses for $37,000,and credit equipment for $40,000.

Question 6

A state government receives a grant from the federal government that it disburses to local governments within the state.The state government disburses the cash received from the federal government to the local government,but the state government has no other administrative responsibilities regarding the grant.The state government should report the grant in:

Accepted Answer

A) an agency fund 
B) a special revenue fund 
C) internal service fund 
D) the general fund 
A) an agency fund 
B) a special revenue fund 
C) internal service fund 
D) the general fund

Question 7

Which of the following is the most likely reason that deferred revenue is reported on the General Fund balance sheet?

Accepted Answer

A) qualifying expenditures have been incurred in conjunction with a federal grant 
B) there are property taxes receivable at year end that probably will not be collected for at least 60 days after the end of the accounting period 
C) there are property taxes receivable at year end that will probably be collected within 60 days after the end of the accounting period 
D) the government owes refunds to property owners who have successfully appealed their property tax assessments 
A) qualifying expenditures have been incurred in conjunction with a federal grant 
B) there are property taxes receivable at year end that probably will not be collected for at least 60 days after the end of the accounting period 
C) there are property taxes receivable at year end that will probably be collected within 60 days after the end of the accounting period 
D) the government owes refunds to property owners who have successfully appealed their property tax assessments

Which of the following interfund transactions will be reported as a separate line item in the operating statement of a General Fund?

In the statement of revenues,expenditures,and changes in fund balances,a transfer received by the Debt Service Fund from the General Fund should be reported by the Debt Service Fund as a:

When counties receive cash advances under grants from the state,what account should they credit?

A city paid $40,000 for police cars with the expectation that they would have a useful life of four years.After three years,the city sold the cars for $3,000.How should the city account for the sale in the General Fund?

Which of the following is the most likely reason that deferred revenue is reported on the General Fund balance sheet?

Governmental and Not-For-Profit

The Use of Funds in Governmental Accounting

Budgetary Considerations in Governmental Accounting

The Governmental Fund Accounting Cycle

The Governmental Fund Accounting Cycle

The Governmental Accounting Cycle

The Governmental Fund Accounting Cycle--Fiduciary Funds

Reporting Principles and Preparation of Fund Financial Statements

Government-Wide Financial Statements

Federal Government Accounting and Reporting

Accounting for Not-For-Profit Organizations

Accounting for Health Care Organizations

Analysis of Financial Statements and Financial Condition

Fundamentals of Accounting

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Exam 5: The Governmental Fund Accounting Cycle

Which of the following interfund transactions will be reported as a separate line item in the operating statement of a General Fund?

In the statement of revenues,expenditures,and changes in fund balances,a transfer received by the Debt Service Fund from the General Fund should be reported by the Debt Service Fund as a:

When counties receive cash advances under grants from the state,what account should they credit?

A city paid $40,000 for police cars with the expectation that they would have a useful life of four years.After three years,the city sold the cars for $3,000.How should the city account for the sale in the General Fund?

Which of the following is the most likely reason that deferred revenue is reported on the General Fund balance sheet?

Governmental and Not-For-Profit

The Use of Funds in Governmental Accounting

Budgetary Considerations in Governmental Accounting

The Governmental Fund Accounting Cycle

The Governmental Fund Accounting Cycle

The Governmental Accounting Cycle

The Governmental Fund Accounting Cycle--Fiduciary Funds

Reporting Principles and Preparation of Fund Financial Statements

Government-Wide Financial Statements

Federal Government Accounting and Reporting

Accounting for Not-For-Profit Organizations

Accounting for Health Care Organizations

Analysis of Financial Statements and Financial Condition

Fundamentals of Accounting

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