Question 1

Which group of financial statements is prepared using the "modified accrual accounting" approach?

Accepted Answer

A)  GAAP-Based Financial Statements. 
B)  Fund Financial Statements. 
C)  Cost-Based Financial Statements. 
D)  Government-Wide Financial Statements. 
E)  General Purpose Financial Statements. 
A)  GAAP-Based Financial Statements. 
B)  Fund Financial Statements. 
C)  Cost-Based Financial Statements. 
D)  Government-Wide Financial Statements. 
E)  General Purpose Financial Statements.

Question 2

On June 14, 2011, 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, 2011, Fred City agreed...

Question 3

On January 1, 2011, 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 consumption method. (Disregard the encumbrance entries.)

Accepted Answer

The answer of On January 1, 2011, Wakefield City purchased...

Question 4

What are the two proprietary fund types?

Accepted Answer

Internal s

Question 5

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 6

The term "current financial resources" refers to

Accepted Answer

A)  Those assets that can quickly be converted into cash. 
B)  Monetary assets available to meet the government's needs. 
C)  The government's current assets and current liabilities. 
D)  The current value of all net assets owned by the governmental unit. 
E)  Financial resources used to provide electricity to local citizens. 
A)  Those assets that can quickly be converted into cash. 
B)  Monetary assets available to meet the government's needs. 
C)  The government's current assets and current liabilities. 
D)  The current value of all net assets owned by the governmental unit. 
E)  Financial resources used to provide electricity to local citizens.

Question 7

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 8

On July 1, 2011, 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 Fund Financial Statements?
(B.) What journal entry was required for the Government-Wide Statements?

Accepted Answer

(A.) For the Fund Statements, an encumbr

Question 9

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 10

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 11

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 12

On July 12, 2011, Fred City ordered a new computer at an anticipated cost of $114,400. The computer was received on July 16 with an actual cost of $116,220. Payment was subsequently made on August 15, 2011.
Required:
(A.) Prepare all the required journal entries and identify the type of fund in which each entry was recorded for the Fund Financial Statements.
(B.) Prepare all the required journal entries and identify the type of fund in which each entry was recorded for the Government-Wide Financial Statements.

Accepted Answer

The answer of On July 12, 2011, Fred City ordered...

Question 13

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 14

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 15

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.

Question 16

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 17

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.

Question 18

The reporting of the fund balance of governmental funds will result in a maximum of ___________ categories:

Accepted Answer

A)  One 
B)  Two 
C)  Three 
D)  Four 
E)  Five 
A)  One 
B)  Two 
C)  Three 
D)  Four 
E)  Five

Question 19

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

Question 20

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.

Which group of financial statements is prepared using the "modified accrual accounting" approach?

On January 1, 2011, 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 consumption method. (Disregard the encumbrance entries.)

What are the two proprietary fund types?

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

The term "current financial resources" refers to

Proprietary funds are

On July 1, 2011, 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 Fund Financial Statements? (B.) What journal entry was required for the Government-Wide Statements?

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

Generally, annual budgets are recorded within the following funds:

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

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.

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.

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

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

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

The reporting of the fund balance of governmental funds will result in a maximum of ___________ categories:

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

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

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 - Intercompany Asset Transactions

Intercompany Debt, Consolidated Statement of 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 for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters

Exam 16: Accounting for State and Local Governments

Which group of financial statements is prepared using the "modified accrual accounting" approach?

On January 1, 2011, 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 consumption method. (Disregard the encumbrance entries.)

What are the two proprietary fund types?

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

The term "current financial resources" refers to

Proprietary funds are

On July 1, 2011, 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 Fund Financial Statements? (B.) What journal entry was required for the Government-Wide Statements?

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

Generally, annual budgets are recorded within the following funds:

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

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.

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.

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

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

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

The reporting of the fund balance of governmental funds will result in a maximum of ___________ categories:

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

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

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 - Intercompany Asset Transactions

Intercompany Debt, Consolidated Statement of 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 for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters