Question 1

Government-wide financial statements benefit users by allowing them to do all of the following except:

Accepted Answer

A) Determine whether the government's overall financial position improved or deteriorated during the reporting period. 
B) Understand the cost of providing services to the citizenry. 
C) See how the government finances its programs. 
D) Identify the government official responsible for managing each fund. 
E) Understand the extent to which the government has invested in capital assets. 
A) Determine whether the government's overall financial position improved or deteriorated during the reporting period. 
B) Understand the cost of providing services to the citizenry. 
C) See how the government finances its programs. 
D) Identify the government official responsible for managing each fund. 
E) Understand the extent to which the government has invested in capital assets. D

Question 2

Which of the following statements is true regarding governmental fund financial statements?

Accepted Answer

A) Governmental fund financial statements report a government's activities and financial position as a whole. 
B) Governmental fund financial statements should tell the amount spent this year on such services as public safety,education,health and sanitation,and the construction of a new road. 
C) Governmental fund financial statements utilize the accrual basis of accounting much like any for-profit entity. 
D) Governmental fund financial statements help to determine whether the government's overall financial position improved or deteriorated. 
E) Governmental fund financial statements report all assets and liabilities in a way comparable to business-type accounting. 
A) Governmental fund financial statements report a government's activities and financial position as a whole. 
B) Governmental fund financial statements should tell the amount spent this year on such services as public safety,education,health and sanitation,and the construction of a new road. 
C) Governmental fund financial statements utilize the accrual basis of accounting much like any for-profit entity. 
D) Governmental fund financial statements help to determine whether the government's overall financial position improved or deteriorated. 
E) Governmental fund financial statements report all assets and liabilities in a way comparable to business-type accounting. B

Question 3

Which of the following is not a true statement regarding revenues from various types of nonexchange transactions?

Accepted Answer

A) Derived tax revenues occur as a result of sales and or income tax. 
B) Imposed nonexchange revenues consist of only fines and penalties assess by the governing agency. 
C) Government mandated nonexchange transactions includes grants from the federal government to the local public school system for a free lunch program. 
D) Voluntary nonexchange transactions can originate from a governmental agency or private citizen organization. 
E) Imposed nonexchange transactions revenue recognition is made in the time period when the resulting resources are required to be used or in the first period in which use is permitted. 
A) Derived tax revenues occur as a result of sales and or income tax. 
B) Imposed nonexchange revenues consist of only fines and penalties assess by the governing agency. 
C) Government mandated nonexchange transactions includes grants from the federal government to the local public school system for a free lunch program. 
D) Voluntary nonexchange transactions can originate from a governmental agency or private citizen organization. 
E) Imposed nonexchange transactions revenue recognition is made in the time period when the resulting resources are required to be used or in the first period in which use is permitted. B

Question 4

Which group of government financial statements reports all revenues and all costs as well as all assets and liabilities of the governmental entity?

Accepted Answer

A) GAAP-based Financial Statements 
B) Fund financial Statements. 
C) Governmental fund financial statements. 
D) Government-wide financial statements. 
E) General fund financial statements. 
A) GAAP-based Financial Statements 
B) Fund financial Statements. 
C) Governmental fund financial statements. 
D) Government-wide financial statements. 
E) General fund financial statements.

Question 5

Which group of financial statements is prepared using the "modified accrual accounting" approach?

Accepted Answer

A) GAAP-based financial statements. 
B) Governmental fund financial statements. 
C) Cost-based financial statements. 
D) Government-wide financial statements. 
E) General-purpose financial statements. 
A) GAAP-based financial statements. 
B) Governmental fund financial statements. 
C) Cost-based financial statements. 
D) Government-wide financial statements. 
E) General-purpose financial statements.

Question 6

Under modified accrual accounting,when should an expenditure be recorded to recognize interest on long-term debt?

Accepted Answer

A) At the end of each accounting period. 
B) When payment is due within one fiscal year. 
C) When it reduces current financial resources. 
D) When cash is available to pay the interest. 
E) When the interest is incurred. 
A) At the end of each accounting period. 
B) When payment is due within one fiscal year. 
C) When it reduces current financial resources. 
D) When cash is available to pay the interest. 
E) When the interest is incurred.

Question 7

What are the broad classifications of funds for a governmental entity such as a city?

Accepted Answer

A) General,governmental,and trust funds. 
B) Governmental,proprietary,and fiduciary funds. 
C) Revenue,trust,and governmental funds. 
D) Enterprise,revenue,and fiduciary funds. 
E) Governmental,agency,and enterprise funds. 
A) General,governmental,and trust funds. 
B) Governmental,proprietary,and fiduciary funds. 
C) Revenue,trust,and governmental funds. 
D) Enterprise,revenue,and fiduciary funds. 
E) Governmental,agency,and enterprise funds.

Question 8

Proprietary funds are

Accepted Answer

A) Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. 
B) Funds used to account for a government's ongoing activities that are similar to those operated by for-profit organizations. 
C) Funds used to account for monies held by the government in a trustee or agency capacity. 
D) Funds used to account for all financial resources except those required to be accounted for in another fund. 
E) Funds used to account for resources that are restricted or committed for a specific purpose other than debt payments or capital projects. 
A) Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. 
B) Funds used to account for a government's ongoing activities that are similar to those operated by for-profit organizations. 
C) Funds used to account for monies held by the government in a trustee or agency capacity. 
D) Funds used to account for all financial resources except those required to be accounted for in another fund. 
E) Funds used to account for resources that are restricted or committed for a specific purpose other than debt payments or capital projects.

Question 9

Prepare the journal entry and identify the fund to record Simple City's purchase order of two trucks for $100,000.Identify the fund in which the entry is recorded.

Accepted Answer

None

Question 10

Under modified accrual accounting,when should revenues be recognized by a governmental-type fund?

Accepted Answer

Under modified accrual accounting,revenu

Question 11

On August 21,2018,Fred City transferred $100,000 from one fund to another fund to cover major repairs to the town hall building.
Required:
Prepare all the required journal entries and identify the fund in which each entry was recorded for the governmental fund financial statements.

Accepted Answer

The answer of On August 21,2018,Fred City transferred $100,000 from...

Question 12

What are the two proprietary fund types?
(1)Internal service funds.
(2)Investment trust funds.
(3)Enterprise funds.
(4)Agency funds.

Accepted Answer

A) 1 and 2. 
B) 2 and 3. 
C) 1 and 3. 
D) 2 and 4. 
E) 1 and 4. 
A) 1 and 2. 
B) 2 and 3. 
C) 1 and 3. 
D) 2 and 4. 
E) 1 and 4.

Question 13

Shell City makes a transfer of $100,000 from the General fund to the Debt service fund.
Required:
Prepare the required journal entries and identify the funds in which they are recorded.

Accepted Answer

None

Question 14

Which of the following funds is most likely created with an endowed gift?

Accepted Answer

A) Enterprise Fund. 
B) Internal Service Fund. 
C) Debt Service Fund. 
D) Capital Projects Fund. 
E) Permanent Fund. 
A) Enterprise Fund. 
B) Internal Service Fund. 
C) Debt Service Fund. 
D) Capital Projects Fund. 
E) Permanent Fund.

Question 15

Which of the following is a fiduciary fund?

Accepted Answer

A) Pension trust fund. 
B) Debt service fund. 
C) Permanent fund. 
D) Enterprise fund. 
E) Capital projects fund. 
A) Pension trust fund. 
B) Debt service fund. 
C) Permanent fund. 
D) Enterprise fund. 
E) Capital projects fund.

Question 16

What is the definition of the term fund?

Accepted Answer

The term fund is defined as a

Question 17

Revenue from property taxes should be recorded in the General Fund

Accepted Answer

A) When received. 
B) When there is an enforceable legal claim. 
C) When they are available for recognition. 
D) In the period for which the resulting resources are required or permitted to be used. 
E) In the period in which the tax bills are mailed. 
A) When received. 
B) When there is an enforceable legal claim. 
C) When they are available for recognition. 
D) In the period for which the resulting resources are required or permitted to be used. 
E) In the period in which the tax bills are mailed.

Question 18

The reporting of the fund balance of governmental funds will result in a maximum of how many categories:

Accepted Answer

A) One 
B) Two 
C) Three 
D) Four 
E) Five 
A) One 
B) Two 
C) Three 
D) Four 
E) Five

Question 19

On July 1,2018,Fred City ordered $1,500 of office supplies.They were to be paid for out of the general fund.
Required:
(A)What journal entry was required for the governmental fund financial statements?
(B)What journal entry was required for the government-wide financial statements?

Accepted Answer

(A)For the governmental fund financial s

Question 20

Trapper City issued 30-year bonds for the purpose of building a new City Hall.The proceeds of the bonds are deposited in the General Fund.For the governmental fund financial statements,in what fund will Bonds Payable appear?

Accepted Answer

A) General fund. 
B) Internal service fund. 
C) Permanent fund. 
D) Debt service fund. 
E) Bonds Payable do not appear in governmental fund financial statements. 
A) General fund. 
B) Internal service fund. 
C) Permanent fund. 
D) Debt service fund. 
E) Bonds Payable do not appear in governmental fund financial statements.

Government-wide financial statements benefit users by allowing them to do all of the following except:

Which of the following statements is true regarding governmental fund financial statements?

Which of the following is not a true statement regarding revenues from various types of nonexchange transactions?

Which group of government financial statements reports all revenues and all costs as well as all assets and liabilities of the governmental entity?

Which group of financial statements is prepared using the "modified accrual accounting" approach?

Under modified accrual accounting,when should an expenditure be recorded to recognize interest on long-term debt?

What are the broad classifications of funds for a governmental entity such as a city?

Proprietary funds are

Prepare the journal entry and identify the fund to record Simple City's purchase order of two trucks for $100,000.Identify the fund in which the entry is recorded.

Under modified accrual accounting,when should revenues be recognized by a governmental-type fund?

On August 21,2018,Fred City transferred $100,000 from one fund to another fund to cover major repairs to the town hall building. Required: Prepare all the required journal entries and identify the fund in which each entry was recorded for the governmental fund financial statements.

What are the two proprietary fund types? (1)Internal service funds. (2)Investment trust funds. (3)Enterprise funds. (4)Agency funds.

Shell City makes a transfer of $100,000 from the General fund to the Debt service fund. Required: Prepare the required journal entries and identify the funds in which they are recorded.

Which of the following funds is most likely created with an endowed gift?

Which of the following is a fiduciary fund?

What is the definition of the term fund?

Revenue from property taxes should be recorded in the General Fund

The reporting of the fund balance of governmental funds will result in a maximum of how many categories:

On July 1,2018,Fred City ordered $1,500 of office supplies.They were to be paid for out of the general fund. Required: (A)What journal entry was required for the governmental fund financial statements? (B)What journal entry was required for the government-wide financial statements?

Trapper City issued 30-year bonds for the purpose of building a new City Hall.The proceeds of the bonds are deposited in the General Fund.For the governmental fund financial statements,in what fund will Bonds Payable appear?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, part II

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Exam 11: Accounting for State and Local Governments, part I

Government-wide financial statements benefit users by allowing them to do all of the following except:

Which of the following statements is true regarding governmental fund financial statements?

Which of the following is not a true statement regarding revenues from various types of nonexchange transactions?

Which group of government financial statements reports all revenues and all costs as well as all assets and liabilities of the governmental entity?

Which group of financial statements is prepared using the "modified accrual accounting" approach?

Under modified accrual accounting,when should an expenditure be recorded to recognize interest on long-term debt?

What are the broad classifications of funds for a governmental entity such as a city?

Proprietary funds are

Prepare the journal entry and identify the fund to record Simple City's purchase order of two trucks for $100,000.Identify the fund in which the entry is recorded.

Under modified accrual accounting,when should revenues be recognized by a governmental-type fund?

On August 21,2018,Fred City transferred $100,000 from one fund to another fund to cover major repairs to the town hall building. Required: Prepare all the required journal entries and identify the fund in which each entry was recorded for the governmental fund financial statements.

What are the two proprietary fund types? (1)Internal service funds. (2)Investment trust funds. (3)Enterprise funds. (4)Agency funds.

Shell City makes a transfer of $100,000 from the General fund to the Debt service fund. Required: Prepare the required journal entries and identify the funds in which they are recorded.

Which of the following funds is most likely created with an endowed gift?

Which of the following is a fiduciary fund?

What is the definition of the term fund?

Revenue from property taxes should be recorded in the General Fund

The reporting of the fund balance of governmental funds will result in a maximum of how many categories:

On July 1,2018,Fred City ordered $1,500 of office supplies.They were to be paid for out of the general fund. Required: (A)What journal entry was required for the governmental fund financial statements? (B)What journal entry was required for the government-wide financial statements?

Trapper City issued 30-year bonds for the purpose of building a new City Hall.The proceeds of the bonds are deposited in the General Fund.For the governmental fund financial statements,in what fund will Bonds Payable appear?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, part II

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