Question 1

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. B

Question 2

Governmental 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. A

Question 3

A new truck was ordered for the sanitation department at a cost of $122,200 on September 3, 2013.
Required:
(A.) Prepare the required journal entry in the General Fund for the Fund Financial Statements.
(B.) Prepare the required journal entry for the Government-Wide Financial Statements.

Accepted Answer

The answer of A new truck was ordered for the...

Question 4

On July 1, 2013, 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 5

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 6

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 7

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 8

Which standard issued by the Governmental Accounting Standards Board in 1999 required two distinct sets of financial statements for state and local governments?

Accepted Answer

A) GASB Statement No. 32. 
B) GASB Statement No. 33. 
C) GASB Statement No. 34. 
D) GASB Statement No. 35. 
E) GASB Statement No. 36. 
A) GASB Statement No. 32. 
B) GASB Statement No. 33. 
C) GASB Statement No. 34. 
D) GASB Statement No. 35. 
E) GASB Statement No. 36.

Question 9

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 10

What account is debited in the general fund when equipment is received by a governmental entity?

Accepted Answer

A) Expenditures. 
B) Encumbrances. 
C) Plant assets. 
D) Accounts Payable. 
E) Fund Balance-Reserve for Encumbrances. 
A) Expenditures. 
B) Encumbrances. 
C) Plant assets. 
D) Accounts Payable. 
E) Fund Balance-Reserve for Encumbrances.

Question 11

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 12

Which type of fund is not included in the Government-Wide Financial Statements?

Accepted Answer

A) Governmental Funds 
B) Proprietary Funds 
C) Fiduciary Funds 
D) Debt Service Funds 
E) Special Revenue Funds 
A) Governmental Funds 
B) Proprietary Funds 
C) Fiduciary Funds 
D) Debt Service Funds 
E) Special Revenue Funds

Question 13

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 14

Revenue from property taxes should be recorded in the General Fund

Accepted Answer

A) when received. 
B) when there is an enforceable legal claim. 
C) when they are available for recognition. 
D) in the period for which they are required or permitted to be used. 
E) in the period in which the tax bills are mailed. 
A) when received. 
B) when there is an enforceable legal claim. 
C) when they are available for recognition. 
D) in the period for which they are required or permitted to be used. 
E) in the period in which the tax bills are mailed.

Question 15

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 16

In governmental accounting, what term is used for a decrease in financial resources?

Accepted Answer

The approp

Question 17

Under modified accrual accounting, when are expenditures recorded?

Accepted Answer

Under modified accrual account

Question 18

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 19

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 20

When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children, which fund should the money be recorded in?

Accepted Answer

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

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

Governmental funds are

A new truck was ordered for the sanitation department at a cost of $122,200 on September 3, 2013. Required: (A.) Prepare the required journal entry in the General Fund for the Fund Financial Statements. (B.) Prepare the required journal entry for the Government-Wide Financial Statements.

On July 1, 2013, 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?

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.)

Which of the following is a fiduciary fund?

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?

Which standard issued by the Governmental Accounting Standards Board in 1999 required two distinct sets of financial statements for state and local governments?

Special Revenue funds are

What account is debited in the general fund when equipment is received by a governmental entity?

Which type of fund is not included in the Government-Wide Financial Statements?

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.

Revenue from property taxes should be recorded in the General Fund

Fiduciary funds are

In governmental accounting, what term is used for a decrease in financial resources?

Under modified accrual accounting, when are expenditures recorded?

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

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

When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children, which fund should the money be 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 Statementsintra-Entity Asset Transactions

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

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part II

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Exam 11: Accounting for State and Local Governments, Part I

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

Governmental funds are

A new truck was ordered for the sanitation department at a cost of $122,200 on September 3, 2013. Required: (A.) Prepare the required journal entry in the General Fund for the Fund Financial Statements. (B.) Prepare the required journal entry for the Government-Wide Financial Statements.

On July 1, 2013, 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?

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.)

Which of the following is a fiduciary fund?

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?

Which standard issued by the Governmental Accounting Standards Board in 1999 required two distinct sets of financial statements for state and local governments?

Special Revenue funds are

What account is debited in the general fund when equipment is received by a governmental entity?

Which type of fund is not included in the Government-Wide Financial Statements?

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.

Revenue from property taxes should be recorded in the General Fund

Fiduciary funds are

In governmental accounting, what term is used for a decrease in financial resources?

Under modified accrual accounting, when are expenditures recorded?

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

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

When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children, which fund should the money be 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 Statementsintra-Entity Asset Transactions

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

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part II

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