Question 1

In special revenue funds, revenues are recognized when available and measurable.

Accepted Answer

A) True 
 B)False

Question 2

GASB requires both extraordinary and special items to be reported separately after other financing sources and uses in the General and Special Revenue fund financial statements

Accepted Answer

A) True 
 B)False

Question 3

Which of the following accounts of a governmental unit's General Fund is credited to close it at the end of the fiscal year?

Accepted Answer

A)  Appropriations Control. 
B)  Other Financing Sources-Transfers In. 
C)  Budgetary Fund Balance -- Reserve for Encumbrances. 
D)  None of the above. 
A)  Appropriations Control. 
B)  Other Financing Sources-Transfers In. 
C)  Budgetary Fund Balance -- Reserve for Encumbrances. 
D)  None of the above.

Question 4

The city of Canandaigua receives proceeds from the sale of land, the transaction is considered to be a special item. Where are the proceeds reported on the Statement of Revenues, Expenditures and Changes in Fund Balance?

Accepted Answer

A)  Separately after other financing sources and uses. 
B)  As a revenue. 
C)  As an item that changes the Fund Balance. 
D)  The proceeds are not recorded but the gain on the sale is. 
A)  Separately after other financing sources and uses. 
B)  As a revenue. 
C)  As an item that changes the Fund Balance. 
D)  The proceeds are not recorded but the gain on the sale is.

Question 5

GASB standards provide particular guidance for the use of special revenue funds. Specifically, the standards require that special revenue funds be used only if a substantial portion of the resources are provided by one or more restricted, committed or assigned revenue sources.

Accepted Answer

A) True 
 B)False

Question 6

Governmental fund financial statements are to be prepared on the accrual basis of accounting.

Accepted Answer

A) True 
 B)False

Question 7

The purpose of fund accounting is to segregate those financial resources that have constraints or limitations on their use to demonstrate compliance with those limitations.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true with respect to interfund loans?

Accepted Answer

A)  Interfund loans are resources provided from one fund to another with the understanding that they do not have to repaid in the future. 
B)  The fund providing the resources records a transfer in and the fund receiving the resources records a transfer out. 
C)  Long-term loans use the terms Transfer to Other Funds and Transfer from Other Funds. 
D)  Interfund loan receivables and payables are separately reported on the balance sheets of the affected funds. 
A)  Interfund loans are resources provided from one fund to another with the understanding that they do not have to repaid in the future. 
B)  The fund providing the resources records a transfer in and the fund receiving the resources records a transfer out. 
C)  Long-term loans use the terms Transfer to Other Funds and Transfer from Other Funds. 
D)  Interfund loan receivables and payables are separately reported on the balance sheets of the affected funds.

Question 9

What is the difference between an extraordinary and special item?

Accepted Answer

Extraordinary items are significant tran

Question 10

The City of Pine Cove levied property taxes for the fiscal year ended June 30, 2017, in the amount of $9,600,000. During the year ended June 30, 2017, $8,350,000 in property taxes was collected. It is estimated that $375,000 will be collected during the next 60 days, $695,000 will be collected after 60 days, and $180,000 will not be collected. What is the maximum amount Pine Cove can recognize as property tax revenue for the fiscal year ended June 30, 2017, in its Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances, assuming there were no unpaid property taxes at the end of the previous year?

Accepted Answer

A)  $8,500,000. 
B)  $8,725,000. 
C)  $9,815,000. 
D)  $10,000,000. 
A)  $8,500,000. 
B)  $8,725,000. 
C)  $9,815,000. 
D)  $10,000,000.

Question 11

Expenditures for claims and judgments, compensated absences, and special termination benefits should be recognized in the General Fund whether or not the liabilities are to be paid with available resources.

Accepted Answer

A) True 
 B)False

Question 12

The Revenues Control account of the General Fund is debited when:

Accepted Answer

A)  The budget is recorded at the beginning of the year. 
B)  Uncollectible taxes receivable accounts are written off. 
C)  Property taxes are collected. 
D)  None of the above. 
A)  The budget is recorded at the beginning of the year. 
B)  Uncollectible taxes receivable accounts are written off. 
C)  Property taxes are collected. 
D)  None of the above.

Question 13

Reciprocal interfund activity:

Accepted Answer

A)  Does not include interfund loans 
B)  Includes interfund transfers 
C)  Is the external counterpart to exchange transactions 
D)  Is the internal counterpart to exchange transactions 
A)  Does not include interfund loans 
B)  Includes interfund transfers 
C)  Is the external counterpart to exchange transactions 
D)  Is the internal counterpart to exchange transactions

Question 14

The following items were included in the City of Wilson's General Fund expenditures for the year ended June 30, 2017:
$\begin{array}{llcc}
  \text {Computer for City Clerk  } & \$3,000\
\text { Maintenance on heating units for City Hall }&\$9,000
\end{array}$

How much should be classified as capital assets in Wilson's General Fund balance sheet at June 30, 2017?

Accepted Answer

A)  $ -0-. 
B)  $ 3,000. 
C)  $ 9,000. 
D)  $12,000. 
A)  $ -0-. 
B)  $ 3,000. 
C)  $ 9,000. 
D)  $12,000.

In special revenue funds, revenues are recognized when available and measurable.

GASB requires both extraordinary and special items to be reported separately after other financing sources and uses in the General and Special Revenue fund financial statements

Which of the following accounts of a governmental unit's General Fund is credited to close it at the end of the fiscal year?

The city of Canandaigua receives proceeds from the sale of land, the transaction is considered to be a special item. Where are the proceeds reported on the Statement of Revenues, Expenditures and Changes in Fund Balance?

GASB standards provide particular guidance for the use of special revenue funds. Specifically, the standards require that special revenue funds be used only if a substantial portion of the resources are provided by one or more restricted, committed or assigned revenue sources.

Governmental fund financial statements are to be prepared on the accrual basis of accounting.

The purpose of fund accounting is to segregate those financial resources that have constraints or limitations on their use to demonstrate compliance with those limitations.

Which of the following is true with respect to interfund loans?

What is the difference between an extraordinary and special item?

Expenditures for claims and judgments, compensated absences, and special termination benefits should be recognized in the General Fund whether or not the liabilities are to be paid with available resources.

The Revenues Control account of the General Fund is debited when:

Reciprocal interfund activity:

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Funds, Interfund Transactions

Government-Wide Statements: Capital Assets; Long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Exam 4: Accounting for the General and Special Revenue Funds

In special revenue funds, revenues are recognized when available and measurable.

GASB requires both extraordinary and special items to be reported separately after other financing sources and uses in the General and Special Revenue fund financial statements

Which of the following accounts of a governmental unit's General Fund is credited to close it at the end of the fiscal year?

The city of Canandaigua receives proceeds from the sale of land, the transaction is considered to be a special item. Where are the proceeds reported on the Statement of Revenues, Expenditures and Changes in Fund Balance?

GASB standards provide particular guidance for the use of special revenue funds. Specifically, the standards require that special revenue funds be used only if a substantial portion of the resources are provided by one or more restricted, committed or assigned revenue sources.

Governmental fund financial statements are to be prepared on the accrual basis of accounting.

The purpose of fund accounting is to segregate those financial resources that have constraints or limitations on their use to demonstrate compliance with those limitations.

Which of the following is true with respect to interfund loans?

What is the difference between an extraordinary and special item?

Expenditures for claims and judgments, compensated absences, and special termination benefits should be recognized in the General Fund whether or not the liabilities are to be paid with available resources.

The Revenues Control account of the General Fund is debited when:

Reciprocal interfund activity:

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Funds, Interfund Transactions

Government-Wide Statements: Capital Assets; Long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters