Question 1

Investments in a private-purpose trust fund should generally be reported using fair market value.

Accepted Answer

A) True 
 B)False

Question 2

Statement 53 (reporting of derivatives)applies only to reporting at the government-wide level,not the fund-basis statements,for governmental-type funds.

Accepted Answer

A) True 
 B)False

Question 3

What account should be credited in a pension trust fund to record employee contributions?

Accepted Answer

A)  Other Financing Sources 
B)  Net Assets 
C)  Pension Benefit Obligation 
D)  None of the above 
A)  Other Financing Sources 
B)  Net Assets 
C)  Pension Benefit Obligation 
D)  None of the above

Question 4

A fund that is the result of an agreement between a contributor and a government that the principal and/or income of trust assets is for the benefit of individuals,organizations,or other governments is a(n):

Accepted Answer

A)  Agency fund 
B)  Private-Purpose Trust Fund 
C)  Investment Trust Fund 
D)  Pension Trust Fund 
A)  Agency fund 
B)  Private-Purpose Trust Fund 
C)  Investment Trust Fund 
D)  Pension Trust Fund

Question 5

Investments should be recorded at fair market value unless a government has sufficient investments in a company to apply the equity method.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true regarding fiduciary funds?

Accepted Answer

A)  Fiduciary funds are included in the government-wide statements but not in the fund statements. 
B)  Fiduciary funds are reported by fund type, not as major funds. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Fiduciary funds are included in the government-wide statements but not in the fund statements. 
B)  Fiduciary funds are reported by fund type, not as major funds. 
C)  Both of the above. 
D)  Neither of the above.

Question 7

Investments in a private-purpose trust fund should generally be reported using the equity method.

Accepted Answer

A) True 
 B)False

Question 8

The City of DeKalb contributes to three pension plans: (1)a statewide pension plan for nonuniformed personnel,(2)a locally administered plan for police officers,and (3)a locally administered plan for firefighters.The City is trustee for the plans for police officers and firefighters.Which of the following is true?

Accepted Answer

A)  The City would maintain trust funds for the police and fire plans but not the statewide plan. 
B)  When making contributions from General Fund resources to the police and fire plans, the General Fund would debit Other Financing Sources-Transfers Out and the Pension Trust Fund would credit Transfers In. 
C)  Both of the above. 
D)  Neither of the above. 
A)  The City would maintain trust funds for the police and fire plans but not the statewide plan. 
B)  When making contributions from General Fund resources to the police and fire plans, the General Fund would debit Other Financing Sources-Transfers Out and the Pension Trust Fund would credit Transfers In. 
C)  Both of the above. 
D)  Neither of the above.

Question 9

If a hedge derivative is deemed ineffective are classified as investment purpose.

Accepted Answer

A) True 
 B)False

Question 10

Fiduciary Funds are used to account for assets held by a government acting as a trustee or agent for entities external to the governmental unit:
 Including individuals,organizations,and other governmental units.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not true regarding postemployment benefit plans other than pension plans?

Accepted Answer

A)  Most governments have operated on a pay-as-you-go basis, and plan net assets are small relative to benefits promised. 
B)  GASB Statement No. 43, Financial Reporting for Postretirement Benefit Plans Other Than Pension Plans, requires that such plans be fully funded. 
C)  Similar to pensions, governments are required to present two financial statements, the Statement of Plan Net Assets and the Statement of Changes in Plan Net Assets. 
D)  Two schedules must be included as required supplementary information: the Schedule of Funding Progress and the Schedule of Employer Contributions. 
A)  Most governments have operated on a pay-as-you-go basis, and plan net assets are small relative to benefits promised. 
B)  GASB Statement No. 43, Financial Reporting for Postretirement Benefit Plans Other Than Pension Plans, requires that such plans be fully funded. 
C)  Similar to pensions, governments are required to present two financial statements, the Statement of Plan Net Assets and the Statement of Changes in Plan Net Assets. 
D)  Two schedules must be included as required supplementary information: the Schedule of Funding Progress and the Schedule of Employer Contributions.

Question 12

List four attributes of an Agency Fund.

Accepted Answer

E)Agency funds are used to account for a

Question 13

Reporting for Defined Benefit Pension Plans require two financial statements plus two schedules.What are the required statements?

Accepted Answer

A)  Statement of Revenues, Expenses, and Changes in Net Assets and Statement of Net Assets. 
B)  Statement of Activity and Balance Sheet. 
C)  Statement of Plan Net Assets and Statement of Changes in Plan Net Assets. 
D)  None of the above. 
A)  Statement of Revenues, Expenses, and Changes in Net Assets and Statement of Net Assets. 
B)  Statement of Activity and Balance Sheet. 
C)  Statement of Plan Net Assets and Statement of Changes in Plan Net Assets. 
D)  None of the above.

Question 14

The Fiduciary Funds are not included in the Government-Wide Financial Statements.

Accepted Answer

A) True 
 B)False

Question 15

Fiduciary Fund activities report in terms of Revenues and Expenses.

Accepted Answer

A) True 
 B)False

Question 16

GASB No.53 establishes reporting requirements for governments entering into derivative instruments.What is the treatment of hedging vs.investment derivates?

Accepted Answer

Hedging derivatives are reported at fair

Question 17

Which of the following is true regarding the financial statements of fiduciary funds?

Accepted Answer

A)  Fiduciary funds' financial statements include the Statement of Fiduciary Net Assets, the Statement of Changes in Fiduciary Net Assets, and the Statement of Fiduciary Cash Flows. 
B)  Fiduciary funds are accounted for using the economic resources measurement focus and accrual basis of accounting. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Fiduciary funds' financial statements include the Statement of Fiduciary Net Assets, the Statement of Changes in Fiduciary Net Assets, and the Statement of Fiduciary Cash Flows. 
B)  Fiduciary funds are accounted for using the economic resources measurement focus and accrual basis of accounting. 
C)  Both of the above. 
D)  Neither of the above.

Question 18

Jefferson County maintains a tax agency fund for use by the County Treasurer to record receivables,collections,and disbursements of all property tax collections to all units of government in the county.In the year 2012,the following taxes were levied:
1.$6,300,000 in property taxes were levied for the General Fund,of which 2% are deemed to
be uncollectible.
2.$3,450,000 in property taxes were levied for the school district.
3.$3,150,000 in property taxes were levied for a village in the county.
Required:
A.Prepare the journal entries for each unit and the Agency Fund to record these levies.
B.The agency fund then collected 92% of the levy for each fund.The Jefferson County
General Fund charges 2.5% of collections as a fee for maintaining the agency fund.
Prepare the journal entries for each unit and the Agency Fund to record these collections and
fees.

Accepted Answer

The answer of Jefferson County maintains a tax agency fund...

Question 19

Fiduciary Funds use the Accrual basis of accounting and are not included in the government-wide financial statements.

Accepted Answer

A) True 
 B)False

Question 20

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the _________.

Accepted Answer

A)  annual required contributions. 
B)  normal cost. 
C)  unfunded actuarial liability. 
D)  net pension obligation. 
A)  annual required contributions. 
B)  normal cost. 
C)  unfunded actuarial liability. 
D)  net pension obligation.

Investments in a private-purpose trust fund should generally be reported using fair market value.

Statement 53 (reporting of derivatives)applies only to reporting at the government-wide level,not the fund-basis statements,for governmental-type funds.

What account should be credited in a pension trust fund to record employee contributions?

A fund that is the result of an agreement between a contributor and a government that the principal and/or income of trust assets is for the benefit of individuals,organizations,or other governments is a(n):

Investments should be recorded at fair market value unless a government has sufficient investments in a company to apply the equity method.

Which of the following is true regarding fiduciary funds?

Investments in a private-purpose trust fund should generally be reported using the equity method.

If a hedge derivative is deemed ineffective are classified as investment purpose.

Fiduciary Funds are used to account for assets held by a government acting as a trustee or agent for entities external to the governmental unit: Including individuals,organizations,and other governmental units.

Which of the following is not true regarding postemployment benefit plans other than pension plans?

List four attributes of an Agency Fund.

Reporting for Defined Benefit Pension Plans require two financial statements plus two schedules.What are the required statements?

The Fiduciary Funds are not included in the Government-Wide Financial Statements.

Fiduciary Fund activities report in terms of Revenues and Expenses.

GASB No.53 establishes reporting requirements for governments entering into derivative instruments.What is the treatment of hedging vs.investment derivates?

Which of the following is true regarding the financial statements of fiduciary funds?

Fiduciary Funds use the Accrual basis of accounting and are not included in the government-wide financial statements.

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the _________.

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 the General and Special Revenue Funds

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

Proprietary Funds

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 7: Fiduciary Trustfunds

Investments in a private-purpose trust fund should generally be reported using fair market value.

Statement 53 (reporting of derivatives)applies only to reporting at the government-wide level,not the fund-basis statements,for governmental-type funds.

What account should be credited in a pension trust fund to record employee contributions?

A fund that is the result of an agreement between a contributor and a government that the principal and/or income of trust assets is for the benefit of individuals,organizations,or other governments is a(n):

Investments should be recorded at fair market value unless a government has sufficient investments in a company to apply the equity method.

Which of the following is true regarding fiduciary funds?

Investments in a private-purpose trust fund should generally be reported using the equity method.

If a hedge derivative is deemed ineffective are classified as investment purpose.

Fiduciary Funds are used to account for assets held by a government acting as a trustee or agent for entities external to the governmental unit: Including individuals,organizations,and other governmental units.

Which of the following is not true regarding postemployment benefit plans other than pension plans?

List four attributes of an Agency Fund.

Reporting for Defined Benefit Pension Plans require two financial statements plus two schedules.What are the required statements?

The Fiduciary Funds are not included in the Government-Wide Financial Statements.

Fiduciary Fund activities report in terms of Revenues and Expenses.

GASB No.53 establishes reporting requirements for governments entering into derivative instruments.What is the treatment of hedging vs.investment derivates?

Which of the following is true regarding the financial statements of fiduciary funds?

Fiduciary Funds use the Accrual basis of accounting and are not included in the government-wide financial statements.

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the _________.

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 the General and Special Revenue Funds

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

Proprietary Funds

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