Question 1

The basis of accounting that should be used in preparing fund financial statements is:

Accepted Answer

A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D C

Question 2

The following are categories of funds described in Chapter 2:
A.Governmental funds
B.Proprietary funds
C.Fiduciary funds

Accepted Answer

1.A,2.B,3.C,4.C,5.B

Question 3

A fund is an accounting but not a fiscal entity.

Accepted Answer

A) True 
 B)False  False

Question 4

Reporting fund financial information in separate columns for each major fund and aggregate information for nonmajor funds

Accepted Answer

A) Means that only those funds that meet the GASB's 10 percent and 5 percent rules are reported in separate columns. 
B) Is optional under GAAP,but is generally required by state laws for governments. 
C) Is the same manner of reporting used by business organizations. 
D) Is required by generally accepted accounting principles for state and local governments. 
A) Means that only those funds that meet the GASB's 10 percent and 5 percent rules are reported in separate columns. 
B) Is optional under GAAP,but is generally required by state laws for governments. 
C) Is the same manner of reporting used by business organizations. 
D) Is required by generally accepted accounting principles for state and local governments.

Question 5

"Capital assets of a government unit should always be reported on the same basis as a business-depreciated historical cost." Do you agree? Why or why not?

Accepted Answer

Generally agree under GASBS 34.The Valua

Question 6

Financial resources set aside to pay principal and interest on general long-term debt may be accounted for in which of the following fund types?

Accepted Answer

A) Private-purpose trust fund. 
B) Debt service fund. 
C) Principal and interest trust fund. 
D) Internal service fund. 
A) Private-purpose trust fund. 
B) Debt service fund. 
C) Principal and interest trust fund. 
D) Internal service fund.

Question 7

Budgetary comparison schedules presenting budgeted versus actual revenues and expenditures are

Accepted Answer

A) Optional under GASB standards for all funds. 
B) Required by GAAP for internal management reports only; not permitted for external financial reporting. 
C) Required by GAAP for the General Fund and major special revenue funds for which an annual budget has been legally adopted. 
D) Required by GAAP for all governmental fund types. 
A) Optional under GASB standards for all funds. 
B) Required by GAAP for internal management reports only; not permitted for external financial reporting. 
C) Required by GAAP for the General Fund and major special revenue funds for which an annual budget has been legally adopted. 
D) Required by GAAP for all governmental fund types.

Question 8

The activities of a water utility department,which offers its services to the general public on a user charge basis,should be accounted for in

Accepted Answer

A) An enterprise fund. 
B) A special revenue fund. 
C) The General Fund. 
D) An internal service fund. 
A) An enterprise fund. 
B) A special revenue fund. 
C) The General Fund. 
D) An internal service fund.

Question 9

The accrual basis of accounting applicable to proprietary fund types requires that exchange revenues be recognized when

Accepted Answer

A) Earned. 
B) Collected in cash. 
C) Authorized by the budget ordinance. 
D) Measurable and available. 
A) Earned. 
B) Collected in cash. 
C) Authorized by the budget ordinance. 
D) Measurable and available.

Question 10

The accounting system used by a state or local government must make it possible

Accepted Answer

A) To present fairly the financial position and results of financial operations of the government as a whole,as well as fund financial activity in conformity with GAAP,and to demonstrate compliance with finance-related legal and contractual provisions. 
B) To prepare financial statements as required by the Financial Accounting Standards Board. 
C) To prepare consolidated accrual basis statements for the government as a whole. 
D) To provide Web-based bond offering statements to investment firms. 
A) To present fairly the financial position and results of financial operations of the government as a whole,as well as fund financial activity in conformity with GAAP,and to demonstrate compliance with finance-related legal and contractual provisions. 
B) To prepare financial statements as required by the Financial Accounting Standards Board. 
C) To prepare consolidated accrual basis statements for the government as a whole. 
D) To provide Web-based bond offering statements to investment firms.

Question 11

Which of the following organizations should not be included as part of the governmental reporting entity?

Accepted Answer

A) A primary government. 
B) Legally separate organizations for which the primary government is financially accountable. 
C) Organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. 
D) Organizations which are legally and fiscally independent of a primary government. 
A) A primary government. 
B) Legally separate organizations for which the primary government is financially accountable. 
C) Organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. 
D) Organizations which are legally and fiscally independent of a primary government.

Question 12

An objective of the accounting system for a state or a local government is to make it possible both to present fairly the funds and activities of the government in conformity with generally accepted accounting principles and to demonstrate compliance with finance-related legal and contractual provisions.

Accepted Answer

A) True 
 B)False

Question 13

In accounting for state and local governments the modified accrual basis is required for

Accepted Answer

A) Proprietary and fiduciary funds. 
B) Governmental funds only. 
C) Proprietary funds only. 
D) All funds. 
A) Proprietary and fiduciary funds. 
B) Governmental funds only. 
C) Proprietary funds only. 
D) All funds.

Question 14

The following are key terms in Chapter 2 that relate to principles of accounting and financial reporting for state and local governments:
A.Fund equity
B.Modified accrual basis
C.Reporting entity
D.Discrete presentation
E.Component unit
F.Accrual basis
G.Blended presentation
H.Governmental activities
For each of the following definitions,indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition.

Accepted Answer

The answer of The following are key terms in Chapter...

Question 15

Describe why a combining balance sheet might be prepared for governmental funds of a government.

Accepted Answer

The government may want to present suppl

Question 16

Explain the difference between measurement focus and basis of accounting.Also,explain the difference between the economic resources measurement focus and the current financial resources measurement focus as well as the difference between the accrual and modified accrual bases of accounting.Which funds and government-wide activities use each focus and each basis?

Accepted Answer

Measurement focus describes what is meas

Question 17

Generally accepted accounting principles applicable to state and local governments require that

Accepted Answer

A) Only governmental funds and proprietary funds should be provided. 
B) Only those funds required by law,GASB standards,and sound financial administration should be provided. 
C) Only those funds required by law should be provided. 
D) All categories of funds must be provided. 
A) Only governmental funds and proprietary funds should be provided. 
B) Only those funds required by law,GASB standards,and sound financial administration should be provided. 
C) Only those funds required by law should be provided. 
D) All categories of funds must be provided.

Question 18

The governmental funds category includes the General Fund,special revenue funds,debt service funds,capital projects funds,and internal service funds.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following funds are proprietary funds?

Accepted Answer

A) Enterprise funds,investment trust funds,pension trust funds,and the General Fund. 
B) Enterprise funds and internal service funds. 
C) Internal service funds,special revenue funds,and enterprise funds. 
D) Proprietary funds are not used in governmental accounting. 
A) Enterprise funds,investment trust funds,pension trust funds,and the General Fund. 
B) Enterprise funds and internal service funds. 
C) Internal service funds,special revenue funds,and enterprise funds. 
D) Proprietary funds are not used in governmental accounting.

Question 20

Under GASB reporting entity standards,a component unit is

Accepted Answer

A) An organization for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. 
B) A legally separate organization that is financially independent of a primary government and on which the primary government cannot impose its will. 
C) A large department of a primary government. 
D) A not-for-profit organization that is authorized to operate within the boundaries of a city but is not accountable financially or in other way to the city. 
A) An organization for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. 
B) A legally separate organization that is financially independent of a primary government and on which the primary government cannot impose its will. 
C) A large department of a primary government. 
D) A not-for-profit organization that is authorized to operate within the boundaries of a city but is not accountable financially or in other way to the city.

The basis of accounting that should be used in preparing fund financial statements is:

The following are categories of funds described in Chapter 2: A.Governmental funds B.Proprietary funds C.Fiduciary funds

A fund is an accounting but not a fiscal entity.

Reporting fund financial information in separate columns for each major fund and aggregate information for nonmajor funds

"Capital assets of a government unit should always be reported on the same basis as a business-depreciated historical cost." Do you agree? Why or why not?

Financial resources set aside to pay principal and interest on general long-term debt may be accounted for in which of the following fund types?

Budgetary comparison schedules presenting budgeted versus actual revenues and expenditures are

The activities of a water utility department,which offers its services to the general public on a user charge basis,should be accounted for in

The accrual basis of accounting applicable to proprietary fund types requires that exchange revenues be recognized when

The accounting system used by a state or local government must make it possible

Which of the following organizations should not be included as part of the governmental reporting entity?

In accounting for state and local governments the modified accrual basis is required for

Describe why a combining balance sheet might be prepared for governmental funds of a government.

Generally accepted accounting principles applicable to state and local governments require that

The governmental funds category includes the General Fund,special revenue funds,debt service funds,capital projects funds,and internal service funds.

Which of the following funds are proprietary funds?

Under GASB reporting entity standards,a component unit is

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

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 the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activities Agency 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 Organizations Regulatory, taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters

Exam 2: Principles of Accounting and Financial Reporting for State and Local Governments

The basis of accounting that should be used in preparing fund financial statements is:

The following are categories of funds described in Chapter 2: A.Governmental funds B.Proprietary funds C.Fiduciary funds

A fund is an accounting but not a fiscal entity.

Reporting fund financial information in separate columns for each major fund and aggregate information for nonmajor funds

"Capital assets of a government unit should always be reported on the same basis as a business-depreciated historical cost." Do you agree? Why or why not?

Financial resources set aside to pay principal and interest on general long-term debt may be accounted for in which of the following fund types?

Budgetary comparison schedules presenting budgeted versus actual revenues and expenditures are

The activities of a water utility department,which offers its services to the general public on a user charge basis,should be accounted for in

The accrual basis of accounting applicable to proprietary fund types requires that exchange revenues be recognized when

The accounting system used by a state or local government must make it possible

Which of the following organizations should not be included as part of the governmental reporting entity?

In accounting for state and local governments the modified accrual basis is required for

Describe why a combining balance sheet might be prepared for governmental funds of a government.

Generally accepted accounting principles applicable to state and local governments require that

The governmental funds category includes the General Fund,special revenue funds,debt service funds,capital projects funds,and internal service funds.

Which of the following funds are proprietary funds?

Under GASB reporting entity standards,a component unit is

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

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 the Business-Type Activities of State and Local Governments

Accounting for Fiduciary Activities Agency 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 Organizations Regulatory, taxation, and Performance Issues

Accounting for Colleges and Universities

Accounting for Health Care Organizations

Accounting and Reporting for the Federal Government

Filters