Question 1

Pension trust fund financial statements would be found in the Comprehensive Annual Financial Report of a governmental reporting entity:

Accepted Answer

A)  Only if the governmental unit desires to disclose the status of employee retirement plans to its employees. 
B)  In all cases when the governmental unit has an obligation to provide funding for employee retirement. 
C)  Only if the governmental unit is the trustee for the PERS. 
D)  Whenever governmental employees have a retirement plan, whether or not the governmental unit is obligated to provide funding. 
A)  Only if the governmental unit desires to disclose the status of employee retirement plans to its employees. 
B)  In all cases when the governmental unit has an obligation to provide funding for employee retirement. 
C)  Only if the governmental unit is the trustee for the PERS. 
D)  Whenever governmental employees have a retirement plan, whether or not the governmental unit is obligated to provide funding.

Question 2

Governments offering postemployment benefits to their retired employees must present two financial statements related to their plans:
 the Statement of Plan Net Assets and the Statement of Changes in Plan Net Assets,as well as additional required supplementary information.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Fiduciary funds use accrual accounting.

Accepted Answer

A) True 
 B)False

Question 5

Private-purpose Trust Funds are used to report trust arrangements,like scholarship endowments.

Accepted Answer

A) True 
 B)False

Question 6

The required financial statements for agency funds include a Statement of Fiduciary Net Assets and a Statement of Changes in Fiduciary Net Assets.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

Accepted Answer

A)  Changes in the value of hedge derivatives are reported in the Statement of Net Assets. 
B)  If a derivative is an investment derivative, the changes in the value of the derivative are deferred and reported in the statement of net assets. 
C)  Statement No. 53 does not apply to proprietary or fiduciary funds. 
D)  Statement No. 53 applies to government financial statements prepared using the modified accrual basis of accounting. 
A)  Changes in the value of hedge derivatives are reported in the Statement of Net Assets. 
B)  If a derivative is an investment derivative, the changes in the value of the derivative are deferred and reported in the statement of net assets. 
C)  Statement No. 53 does not apply to proprietary or fiduciary funds. 
D)  Statement No. 53 applies to government financial statements prepared using the modified accrual basis of accounting.

Question 8

The tax agency fund of Orange County collected $7,000,000 for a school district,$3,000,000 for the county General Fund,and $5,000,000 for a municipality.County General Fund employees handle the collections,and a 2.5 percent collection fee is charged all units except the county.The total amount of revenue recognized by the county General Fund would be:

Accepted Answer

A)  $390,000. 
B)  $3,300,000. 
C)  $3,390,000. 
D)  $300,000. 
A)  $390,000. 
B)  $3,300,000. 
C)  $3,390,000. 
D)  $300,000.

Question 9

Investments in a private-purpose trust fund should generally be reported using:

Accepted Answer

A)  Cost Basis. 
B)  Fair Market Value. 
C)  Equity Method. 
D)  None of the above. 
A)  Cost Basis. 
B)  Fair Market Value. 
C)  Equity Method. 
D)  None of the above.

Question 10

Unfunded pension obligations are not reported in the fund-basis statements for governmental funds.

Accepted Answer

A) True 
 B)False

Question 11

Fiduciary Funds are reported by activity.

Accepted Answer

A) True 
 B)False

Question 12

Agency fund assets are offset by liabilities equal in amount,so no fund equity exists.

Accepted Answer

A) True 
 B)False

Question 13

Contrast the accounting for internal and external portions of investment pools.

Accepted Answer

The internal portion of investment pools

Question 14

Governmental investments in debt securities,in all cases,are to be reported at amortized cost.

Accepted Answer

A) True 
 B)False

Question 15

A fund that exists when a government is the trustee for a defined benefit pension plan,or a defined contribution pension plan 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 16

Escheat property is best described as which of the following?

Accepted Answer

A)  Property possessed by a local government, but whose use is restricted by a higher government. 
B)  Property a government obtains and holds for the rightful owner in the absence of claimants or heirs. 
C)  Property gifted to the government by private citizens. 
D)  Property the government obtains via eminent domain. 
A)  Property possessed by a local government, but whose use is restricted by a higher government. 
B)  Property a government obtains and holds for the rightful owner in the absence of claimants or heirs. 
C)  Property gifted to the government by private citizens. 
D)  Property the government obtains via eminent domain.

Question 17

Financial reporting requirements for defined benefit pension plans include all of the following statements and schedules except?

Accepted Answer

A)  Schedule of Funding Progress. 
B)  Statement of Changes in Plan Net Assets. 
C)  Statement of Plan Net Assets. 
D)  Schedule of Employee Contributions. 
A)  Schedule of Funding Progress. 
B)  Statement of Changes in Plan Net Assets. 
C)  Statement of Plan Net Assets. 
D)  Schedule of Employee Contributions.

Question 18

Agency funds have no fund equity.

Accepted Answer

A) True 
 B)False

Question 19

Clinton County maintains an investment trust fund for the investments of governments within its borders.All the investments had determinable fair values.Which of the following is true regarding investment trust funds and investments in general?

Accepted Answer

A)  Clinton County would report the investments of the other governments at fair value in the investment trust funds. 
B)  Clinton County would report its own investments at fair value in the investment trust funds. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Clinton County would report the investments of the other governments at fair value in the investment trust funds. 
B)  Clinton County would report its own investments at fair value in the investment trust funds. 
C)  Both of the above. 
D)  Neither of the above.

Question 20

Agency fund assets and liabilities are accrued at year end.

Accepted Answer

A) True 
 B)False

Pension trust fund financial statements would be found in the Comprehensive Annual Financial Report of a governmental reporting entity:

Governments offering postemployment benefits to their retired employees must present two financial statements related to their plans: the Statement of Plan Net Assets and the Statement of Changes in Plan Net Assets,as well as additional required supplementary information.

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

Fiduciary funds use accrual accounting.

Private-purpose Trust Funds are used to report trust arrangements,like scholarship endowments.

The required financial statements for agency funds include a Statement of Fiduciary Net Assets and a Statement of Changes in Fiduciary Net Assets.

Which of the following statements is correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

Investments in a private-purpose trust fund should generally be reported using:

Unfunded pension obligations are not reported in the fund-basis statements for governmental funds.

Fiduciary Funds are reported by activity.

Agency fund assets are offset by liabilities equal in amount,so no fund equity exists.

Contrast the accounting for internal and external portions of investment pools.

Governmental investments in debt securities,in all cases,are to be reported at amortized cost.

A fund that exists when a government is the trustee for a defined benefit pension plan,or a defined contribution pension plan is a(n):

Escheat property is best described as which of the following?

Financial reporting requirements for defined benefit pension plans include all of the following statements and schedules except?

Agency funds have no fund equity.

Clinton County maintains an investment trust fund for the investments of governments within its borders.All the investments had determinable fair values.Which of the following is true regarding investment trust funds and investments in general?

Agency fund assets and liabilities are accrued at year end.

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

Pension trust fund financial statements would be found in the Comprehensive Annual Financial Report of a governmental reporting entity:

Governments offering postemployment benefits to their retired employees must present two financial statements related to their plans: the Statement of Plan Net Assets and the Statement of Changes in Plan Net Assets,as well as additional required supplementary information.

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

Fiduciary funds use accrual accounting.

Private-purpose Trust Funds are used to report trust arrangements,like scholarship endowments.

The required financial statements for agency funds include a Statement of Fiduciary Net Assets and a Statement of Changes in Fiduciary Net Assets.

Which of the following statements is correct with respect to GASB Statement No.53 which establishes reporting requirements for governments entering into derivative instruments?

Investments in a private-purpose trust fund should generally be reported using:

Unfunded pension obligations are not reported in the fund-basis statements for governmental funds.

Fiduciary Funds are reported by activity.

Agency fund assets are offset by liabilities equal in amount,so no fund equity exists.

Contrast the accounting for internal and external portions of investment pools.

Governmental investments in debt securities,in all cases,are to be reported at amortized cost.

A fund that exists when a government is the trustee for a defined benefit pension plan,or a defined contribution pension plan is a(n):

Escheat property is best described as which of the following?

Financial reporting requirements for defined benefit pension plans include all of the following statements and schedules except?

Agency funds have no fund equity.

Clinton County maintains an investment trust fund for the investments of governments within its borders.All the investments had determinable fair values.Which of the following is true regarding investment trust funds and investments in general?

Agency fund assets and liabilities are accrued at year end.

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