Exam 2: The Use of Funds in Governmental Accounting

A governmental unit establishes a central motor pool to provide service to governmental departments and agencies.The pricing objective of the central motor pool is to break-even by charging all agencies a user fee.What type of fund should be established for this activity?

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

D

Which of the following financial statements would be prepared for enterprise funds?

Free

(Multiple Choice)

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Question 2

Correct Answer:

Verified

D

A city has an Arts and Cultural Fund that is used to account for private contributions that are restricted by the donors for the financing of the city's museum operations and functions.The Arts and Cultural Fund is a:

Free

(Multiple Choice)

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Question 3

Correct Answer:

Verified

B

To what does basis of accounting refer?

(Multiple Choice)

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Question 4

Which category of funds focuses on financial resources available for current spending?

(Multiple Choice)

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Question 5

What is the purpose of a debt service fund?

(Multiple Choice)

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Question 6

The General Fund levies property taxes in the amount of $1,000,000 for calendar year 2009.It expects to collect $950,000 during the year,$30,000 in the first 60 days of the next year,and $15,000 during the rest of the next year.It does not expect to collect the remaining $5,000.How much property tax revenue should it recognize for the year 2009?

(Multiple Choice)

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Question 7

At what point are revenues recognized in the General Fund?

(Multiple Choice)

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Question 8

What is the disposition of the earnings of a Permanent Fund?

(Multiple Choice)

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Question 9

Which of the following funds all use the current financial resources measurement focus?

(Multiple Choice)

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Question 10

Which of the following is a distinguishing characteristic of proprietary funds?

(Multiple Choice)

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Question 11

A state collects sales taxes not only for itself,but also on behalf of all cities within the state.What type of fund should the state use to account for the sales taxes held for the cities?

(Multiple Choice)

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Question 12

State whether these statements are true or false.Discuss why the false statements are false.

Enterprise Funds provide services primarily to governmental departments and agencies.

False

As a general rule,Internal Service Funds sell goods and services to governmental agencies,and Enterprise Funds sell goods and services to the general public.This means an Enterprise Fund cannot sell some goods and services to the government itself.

True

Enterprise Funds are financed primarily through user charges.

Correct Answer:

Verified

Enterprise Funds provide services primarily to governmental departments and agencies.

As a general rule,Internal Service Funds sell goods and services to governmental agencies,and Enterprise Funds sell goods and services to the general public.This means an Enterprise Fund cannot sell some goods and services to the government itself.

(Matching)

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Question 13

Which of the following is a distinguishing characteristic of the resources accounted for in fiduciary funds?

(Multiple Choice)

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Question 14

Which of the following is true regarding a statement of cash flows prepared by a government?

(Multiple Choice)

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Question 15

Which basis of accounting is used by funds that have a current financial resources measurement focus?

(Multiple Choice)

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Question 16

Which of the following is a characteristic of an Agency Fund's financial reporting?

(Multiple Choice)

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Question 17

The information generated from the accounting system of a governmental-type fund

(Multiple Choice)

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Question 18

A state legislature enacts a new park entrance fee that may be used only for adding to and maintaining the collection of tropical plants in that state's nationally famous Prospect Park.Which type of fund should be used to account for those resources?

(Multiple Choice)

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Question 19

Which measurement focus and basis of accounting should be used in an Internal Service Fund?

(Short Answer)

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Question 20

A governmental unit establishes a central motor pool to provide service to governmental departments and agencies.The pricing objective of the central motor pool is to break-even by charging all agencies a user fee.What type of fund should be established for this activity?

Which of the following financial statements would be prepared for enterprise funds?

A city has an Arts and Cultural Fund that is used to account for private contributions that are restricted by the donors for the financing of the city's museum operations and functions.The Arts and Cultural Fund is a:

To what does basis of accounting refer?

Which category of funds focuses on financial resources available for current spending?

What is the purpose of a debt service fund?

At what point are revenues recognized in the General Fund?

What is the disposition of the earnings of a Permanent Fund?

Which of the following funds all use the current financial resources measurement focus?

Which of the following is a distinguishing characteristic of proprietary funds?

A state collects sales taxes not only for itself,but also on behalf of all cities within the state.What type of fund should the state use to account for the sales taxes held for the cities?

Which of the following is a distinguishing characteristic of the resources accounted for in fiduciary funds?

Which of the following is true regarding a statement of cash flows prepared by a government?

Which basis of accounting is used by funds that have a current financial resources measurement focus?

Which of the following is a characteristic of an Agency Fund's financial reporting?

The information generated from the accounting system of a governmental-type fund

A state legislature enacts a new park entrance fee that may be used only for adding to and maintaining the collection of tropical plants in that state's nationally famous Prospect Park.Which type of fund should be used to account for those resources?

Which measurement focus and basis of accounting should be used in an Internal Service Fund?

Governmental and Not-For-Profit

Budgetary Considerations in Governmental Accounting

The Governmental Fund Accounting Cycle

The Governmental Fund Accounting Cycle

The Governmental Fund Accounting Cycle

The Governmental Accounting Cycle

The Governmental Fund Accounting Cycle--Fiduciary Funds

Reporting Principles and Preparation of Fund Financial Statements

Government-Wide Financial Statements

Federal Government Accounting and Reporting

Accounting for Not-For-Profit Organizations

Accounting for Health Care Organizations

Analysis of Financial Statements and Financial Condition

Fundamentals of Accounting

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