Exam 7: Accounting for the Business-Type Activities of State and Local Governments

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GASB standards require that interfund receivables and payables between governmental and business-type activities be presented as internal balances.

(True/False)

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Question 41

The comprehensive annual financial report (CAFR)of a government should contain a statement of revenues,expenses,and changes in fund net position for:

(Multiple Choice)

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Question 42

What are the alternative methods of dissolving an internal service fund?

(Essay)

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Question 43

Equipment acquired under a capital lease for use by an internal service fund will be reported as a capital asset in both the fund and government-wide financial statements.

(True/False)

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Question 44

Which of the following account balances would only be reported if a city-owned utility followed regulatory accounting principles?

(Multiple Choice)

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Question 45

Legislators often believe an internal service fund function will not be subjected to annual legislative budget review and the legislature will "lose control" of the fund.Do you agree with this line of reasoning? Why or why not?

(Essay)

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Question 46

Which of the following accounts would appropriately be included on an enterprise fund balance sheet?

(Multiple Choice)

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Question 47

Customers' meter deposits,which cannot be spent for normal operating purposes,would be classified as restricted cash in the balance sheet of which fund type?

(Multiple Choice)

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Question 48

Internal service funds are intended to operate on taxes or other financing sources authorized by the legally enacted revenue budget for each year; therefore,they are classified as governmental funds.

(True/False)

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Question 49

An internal service fund normally uses which of the following budgetary accounts?

(Multiple Choice)

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Question 50

In which of the following funds is it appropriate to record depreciation of capital assets?

(Multiple Choice)

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Question 51

Which of the following would be reflected in the operating statement of a proprietary fund?

(Multiple Choice)

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Question 52

Which of the following is not regarding proprietary funds?

(Multiple Choice)

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Question 53

The Central City Golf Course,an enterprise fund,purchased a new stove for use in the course's snack shop.The debit for the entry to record the purchase should be to:

(Multiple Choice)

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Question 54

Enterprise funds are reported as a part of the Governmental Activities column of the government-wide financial statements when they provide services to governmental funds.

(True/False)

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Question 55

When a supplies internal service fund records a billing to the General Fund,the journal entry in the internal service fund will include:

(Multiple Choice)

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Question 56

An employee pension fund is a common example of an internal service fund.

(True/False)

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Question 57

Which of the following may properly be reported as a component of net position in the proprietary fund statement of net position?

(Multiple Choice)

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Question 58

When a new internal service fund is established with a transfer of funds (not to be repaid),which account would be credited in the internal service fund?

(Multiple Choice)

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Question 59

Which of the following activities or services would most likely not be accounted for by an internal service fund?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 75

GASB standards require that interfund receivables and payables between governmental and business-type activities be presented as internal balances.

The comprehensive annual financial report (CAFR)of a government should contain a statement of revenues,expenses,and changes in fund net position for:

What are the alternative methods of dissolving an internal service fund?

Equipment acquired under a capital lease for use by an internal service fund will be reported as a capital asset in both the fund and government-wide financial statements.

Which of the following account balances would only be reported if a city-owned utility followed regulatory accounting principles?

Legislators often believe an internal service fund function will not be subjected to annual legislative budget review and the legislature will "lose control" of the fund.Do you agree with this line of reasoning? Why or why not?

Which of the following accounts would appropriately be included on an enterprise fund balance sheet?

Customers' meter deposits,which cannot be spent for normal operating purposes,would be classified as restricted cash in the balance sheet of which fund type?

Internal service funds are intended to operate on taxes or other financing sources authorized by the legally enacted revenue budget for each year; therefore,they are classified as governmental funds.

An internal service fund normally uses which of the following budgetary accounts?

In which of the following funds is it appropriate to record depreciation of capital assets?

Which of the following would be reflected in the operating statement of a proprietary fund?

Which of the following is not regarding proprietary funds?

The Central City Golf Course,an enterprise fund,purchased a new stove for use in the course's snack shop.The debit for the entry to record the purchase should be to:

Enterprise funds are reported as a part of the Governmental Activities column of the government-wide financial statements when they provide services to governmental funds.

When a supplies internal service fund records a billing to the General Fund,the journal entry in the internal service fund will include:

An employee pension fund is a common example of an internal service fund.

Which of the following may properly be reported as a component of net position in the proprietary fund statement of net position?

When a new internal service fund is established with a transfer of funds (not to be repaid),which account would be credited in the internal service fund?

Which of the following activities or services would most likely not be accounted for by an internal service fund?

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

Principles of Accounting and Financial Reporting for State and Local Governments

Governmental Operating Statement Accounts Budgetary Accounting

Accounting for Governmental Operating Activitiesillustrative Transactions and Financial Statements

Accounting for General Capital Assets and Capital Projects

Accounting for General Long-Term Liabilities and Debt Service

Accounting for Fiduciary Activitiesagency and Trust Funds

Financial Reporting of State and Local Governments

Analysis of Governmental Financial Performance

Auditing of Governmental and Not-For-Profit Organizations

Budgeting and Performance Measurement

Accounting for Not-For-Profit Organizations

Not-For-Profit Organizationsregulatory, Taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government Glossary

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