Question 1

Fund equity will not be found in....

Accepted Answer

A)  Investment trust funds. 
B)  Pension trust funds. 
C)  Agency funds. 
D)  Private-purpose trust funds. 
A)  Investment trust funds. 
B)  Pension trust funds. 
C)  Agency funds. 
D)  Private-purpose trust funds.

Question 2

A private-purpose trust fund where the principal is not expendable,normally it is called a/an:

Accepted Answer

A)  Donation. 
B)  Endowment. 
C)  Gift. 
D)  Transfer. 
A)  Donation. 
B)  Endowment. 
C)  Gift. 
D)  Transfer.

Question 3

Fiduciary Funds are reported by fund type.

Accepted Answer

A) True 
 B)False

Question 4

Agency Funds are not included in the Government-wide Financial Statements because:

Accepted Answer

A)  These Funds use the modified accrual basis of accounting. 
B)  The resources are not available to the reporting unit. 
C)  The government doesn't keep track of these types of funds. 
D)  These funds do not have a material effect on the financial statements. 
A)  These Funds use the modified accrual basis of accounting. 
B)  The resources are not available to the reporting unit. 
C)  The government doesn't keep track of these types of funds. 
D)  These funds do not have a material effect on the financial statements.

Question 5

GASB Statement No.52 requires that endowments with investment real estate report those assets at historical cost.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true regarding pension accounting and reporting for state and local governments?

Accepted Answer

A)  When the General Fund makes a contribution to a pension trust fund, the account "Expenditures" is debited. 
B)  The Statement of Changes in Fiduciary Net Assets reports "additions" and "deductions," computed on the accrual basis. 
C)  Both of the above. 
D)  Neither of the above. 
A)  When the General Fund makes a contribution to a pension trust fund, the account "Expenditures" is debited. 
B)  The Statement of Changes in Fiduciary Net Assets reports "additions" and "deductions," computed on the accrual basis. 
C)  Both of the above. 
D)  Neither of the above.

Question 7

Changes in the value of hedge derivatives are reported in the Statement of Net Assets.

Accepted Answer

A) True 
 B)False

Question 8

An endowment to provide scholarships would most likely be accounted for in which of the following fund types?

Accepted Answer

A)  Agency Fund. 
B)  Investment Trust Fund. 
C)  Private-Purpose Trust Fund. 
D)  None of the Above. 
A)  Agency Fund. 
B)  Investment Trust Fund. 
C)  Private-Purpose Trust Fund. 
D)  None of the Above.

Question 9

The City of Sycamore has investments in bonds.These bonds have an amortized cost of $1,996,000 and a market value of $2,002,000.The market value is quoted and available in the financial press.The original cost of the bonds was $1,992,000.The par value at maturity will be $2,000,000.The amount at which the investments would be reported is:

Accepted Answer

A)  $2,002,000 
B)  $2,000,000 
C)  $1,996,000 
D)  $1,992,000 
A)  $2,002,000 
B)  $2,000,000 
C)  $1,996,000 
D)  $1,992,000

Question 10

A fund that accounts for the external portion of investment pools reported by the sponsoring government.

Accepted Answer

A)  Special Revenue Fund 
B)  Investment Trust Fund 
C)  Enterprise Fund 
D)  Private-purpose Trust Fund 
A)  Special Revenue Fund 
B)  Investment Trust Fund 
C)  Enterprise Fund 
D)  Private-purpose Trust Fund

Question 11

A ___________ is when a contributor and a government agree that the principal and/or income of trust assets are for the benefit of individuals.

Accepted Answer

A)  Investment Trust 
B)  Private-Purpose Trust 
C)  Pension Trust 
D)  Employee Benefit Trust 
A)  Investment Trust 
B)  Private-Purpose Trust 
C)  Pension Trust 
D)  Employee Benefit Trust

Question 12

On July 1,2011,the City of Corfu received a gift of debt securities of XYZ Company with a nominal (par)value of $4,000,000.Income is to be used to make awards for civic achievements.As of the date of the gift,the securities had a market value of $4,088,000,including accrued interest of $60,000.The bonds carried an annual interest rate of 6%,payable semiannually on April 1 and October 1.During the fiscal year ended June 30,2012,the following transactions took place:
   Required:
A.Record the above transactions on the books of the City of Corfu Private-Purpose Trust Fund.
B.Prepare a Statement of Changes in Fiduciary Net Assets for the City of Corfu Private-Purpose Trust Fund for the year ended June 30,2012.

Accepted Answer

The answer of On July 1,2011,the City of Corfu received...

Question 13

Statement 53 (reporting of derivatives)does not apply to proprietary or fiduciary funds.

Accepted Answer

A) True 
 B)False

Question 14

The term "fiduciary funds" include agency,pension trust,investment trust,and permanent funds.

Accepted Answer

A) True 
 B)False

Question 15

Defined contribution plans are required to pay retired employees a certain amount regardless of the amount contributed to the plan.

Accepted Answer

A) True 
 B)False

Question 16

The terms used for classification of items on the Statement of Changes in Fiduciary Net Assets are:

Accepted Answer

A)  Revenues and Expenses. 
B)  Additions and Deductions. 
C)  Revenues and Expenditures. 
D)  Contributions and Expenses. 
A)  Revenues and Expenses. 
B)  Additions and Deductions. 
C)  Revenues and Expenditures. 
D)  Contributions and Expenses.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The City of Richmond maintains a Public Employee Retirement Trust Fund for its public safety employees.During the year ended June 30,2012,the following transactions occurred:
   Required:
 Prepare journal entries for the above transactions on the books of the City of East Brunswick Public Safety Employee Retirement Trust Fund.

Accepted Answer

The answer of The City of Richmond maintains a Public...

Question 19

If a derivative is effective in reducing a government's exposure to identifiable risks,the changes in the value of the derivative are reflected as investment gains or losses in the period that the value changes.

Accepted Answer

A) True 
 B)False

Question 20

Internal investment pools,which account for investments of the reporting entity,are to be spread out to the funds providing the resources,when preparing financial statements.

Accepted Answer

A) True 
 B)False

Fund equity will not be found in....

A private-purpose trust fund where the principal is not expendable,normally it is called a/an:

Fiduciary Funds are reported by fund type.

Agency Funds are not included in the Government-wide Financial Statements because:

GASB Statement No.52 requires that endowments with investment real estate report those assets at historical cost.

Which of the following is true regarding pension accounting and reporting for state and local governments?

Changes in the value of hedge derivatives are reported in the Statement of Net Assets.

An endowment to provide scholarships would most likely be accounted for in which of the following fund types?

A fund that accounts for the external portion of investment pools reported by the sponsoring government.

A ___________ is when a contributor and a government agree that the principal and/or income of trust assets are for the benefit of individuals.

Statement 53 (reporting of derivatives)does not apply to proprietary or fiduciary funds.

The term "fiduciary funds" include agency,pension trust,investment trust,and permanent funds.

Defined contribution plans are required to pay retired employees a certain amount regardless of the amount contributed to the plan.

The terms used for classification of items on the Statement of Changes in Fiduciary Net Assets are:

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

If a derivative is effective in reducing a government's exposure to identifiable risks,the changes in the value of the derivative are reflected as investment gains or losses in the period that the value changes.

Internal investment pools,which account for investments of the reporting entity,are to be spread out to the funds providing the resources,when preparing financial statements.

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

Fund equity will not be found in....

A private-purpose trust fund where the principal is not expendable,normally it is called a/an:

Fiduciary Funds are reported by fund type.

Agency Funds are not included in the Government-wide Financial Statements because:

GASB Statement No.52 requires that endowments with investment real estate report those assets at historical cost.

Which of the following is true regarding pension accounting and reporting for state and local governments?

Changes in the value of hedge derivatives are reported in the Statement of Net Assets.

An endowment to provide scholarships would most likely be accounted for in which of the following fund types?

A fund that accounts for the external portion of investment pools reported by the sponsoring government.

A ___________ is when a contributor and a government agree that the principal and/or income of trust assets are for the benefit of individuals.

Statement 53 (reporting of derivatives)does not apply to proprietary or fiduciary funds.

The term "fiduciary funds" include agency,pension trust,investment trust,and permanent funds.

Defined contribution plans are required to pay retired employees a certain amount regardless of the amount contributed to the plan.

The terms used for classification of items on the Statement of Changes in Fiduciary Net Assets are:

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

If a derivative is effective in reducing a government's exposure to identifiable risks,the changes in the value of the derivative are reflected as investment gains or losses in the period that the value changes.

Internal investment pools,which account for investments of the reporting entity,are to be spread out to the funds providing the resources,when preparing financial statements.

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