Question 1

Which of the following terms best describes the types of assets accounted for in governmental-type funds?

Accepted Answer

A) any resource that can be used to provide service to the citizenry 
B) financial assets and capital assets 
C) current assets and movable fixed assets 
D) financial assets 
A) any resource that can be used to provide service to the citizenry 
B) financial assets and capital assets 
C) current assets and movable fixed assets 
D) financial assets

Question 2

Which of the following statements about capital projects funds is true?

Accepted Answer

A) The assets of a capital projects fund include both financial and capital assets 
B) All fixed assets acquired by a government are paid for from a capital projects fund 
C) A capital projects fund accounts for resources that are restricted or otherwise limited to spending for capital outlays 
D) When capital assets are financed through the issuance of long-term debt,that long-term debt is accounted for in a capital projects fund. 
A) The assets of a capital projects fund include both financial and capital assets 
B) All fixed assets acquired by a government are paid for from a capital projects fund 
C) A capital projects fund accounts for resources that are restricted or otherwise limited to spending for capital outlays 
D) When capital assets are financed through the issuance of long-term debt,that long-term debt is accounted for in a capital projects fund.

Question 3

Governmental accounting normally does not

Accepted Answer

A) use separate funds to account for various activities 
B) incorporate budgetary accounts into the accounting system 
C) measure the amount of profit earned during a fiscal year 
D) focus on flows of current financial resources 
A) use separate funds to account for various activities 
B) incorporate budgetary accounts into the accounting system 
C) measure the amount of profit earned during a fiscal year 
D) focus on flows of current financial resources

Question 4

Under modified accrual accounting,when are revenues considered to be "available?"

Accepted Answer

A) when cash has been collected 
B) when cash is collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period 
C) when cash is on hand or reasonably expected to be collected at any time in the future so they can pay liabilities incurred in the current period 
D) when property tax bills have been mailed 
A) when cash has been collected 
B) when cash is collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period 
C) when cash is on hand or reasonably expected to be collected at any time in the future so they can pay liabilities incurred in the current period 
D) when property tax bills have been mailed

Question 5

A city has a General Fund and an Enterprise Fund.During the year,legal claims are filed against the resources of both funds.City attorneys believe that each claim will ultimately be settled for about $55,000,but settling claims of this kind usually is about a three-year process.How much should be reported as a liability in each fund's balance sheet at the end of the current year?

Accepted Answer

The answer of A city has a General Fund and...

Question 6

In governmental accounting,a fund is best defined as:

Accepted Answer

A) a sum of cash set aside to attain certain objectives 
B) a fiscal entity that has both financial and capital resources 
C) a fiscal entity that has cash resources only 
D) a fiscal and accounting entity with a self-balancing set of accounts 
A) a sum of cash set aside to attain certain objectives 
B) a fiscal entity that has both financial and capital resources 
C) a fiscal entity that has cash resources only 
D) a fiscal and accounting entity with a self-balancing set of accounts

Question 7

The Dillard Park Fund is used to account for a private donation by Mr.and Mrs.Bud Dillard.When making the donation,the Dillard's stipulated that only the income from this fund could be used for the operations of Dillard Park,a city owned park.The Dillard Park Fund is a:

Accepted Answer

A) General Fund 
B) Special Revenue Fund 
C) Permanent Fund 
D) Private-Purpose Trust Fund 
A) General Fund 
B) Special Revenue Fund 
C) Permanent Fund 
D) Private-Purpose Trust Fund

Question 8

Match between columns
                        Premises: All funds report both financial resources and capital resources.
All the long-term debt of a government,including the long-term debt that will be financed by Enterprise Fund revenues,is reported in the fund-level financial statements.
For financial reporting purposes,operating transfers from one fund to another are generally reported in a separate section of the operating statements for each of the funds.
For financial reporting,current assets and liabilities are separated from long-term assets and liabilities in the balance sheets of Enterprise Funds.
Long-term liabilities resulting from the operating activities of a General Fund,such as accrued vacation leave,are reported in the fund-level financial statements.Long-term liabilities resulting from the capital acquisition activities of a Capital Projects Fund,however,are not.

Accepted Answer

The Answer of True and False is...

Question 9

A local government sells bonds having a face value of $1,000,000 at par.The bond proceeds will be accounted for in a Capital Projects Fund.What account will be credited to offset the debit to cash?

Accepted Answer

A) other financing sources 
B) citizens' equity 
C) fund balance 
D) bonds payable 
A) other financing sources 
B) citizens' equity 
C) fund balance 
D) bonds payable

Question 10

A long-term loan from the General Fund to another fund is reported in the General Fund as:

Accepted Answer

A) due from other fund 
B) due to other fund 
C) advance to other fund 
D) advance from other fund 
A) due from other fund 
B) due to other fund 
C) advance to other fund 
D) advance from other fund

Question 11

Within a fund,which of the following results from using the current financial resources measurement focus?

Accepted Answer

A) capital assets will be depreciated 
B) property taxes will be recognized on the cash basis of accounting 
C) a liability must be reported for unsettled claims,provided payment ultimately will be made 
D) long-term assets and liabilities will not be recorded in the fund 
A) capital assets will be depreciated 
B) property taxes will be recognized on the cash basis of accounting 
C) a liability must be reported for unsettled claims,provided payment ultimately will be made 
D) long-term assets and liabilities will not be recorded in the fund

Question 12

Match between columns
                        Premises: Pension Trust Funds use the modified accrual basis of accounting.
Agency Funds are different from other Fiduciary Funds because Agency Funds have no liabilities;that is,the assets of Agency Funds are always equal to the equity of the Funds.
A Private-Purpose Trust Fund is used when a donor provides resources to a state that the state can use for any purpose agreed upon by the governor and the legislature.
The external portion of an investment pool should be reported in a Fiduciary Fund.

Accepted Answer

The Answer of True and False is...

Question 13

A governmental fund has total liabilities in excess of its total assets at the end of the fiscal year.It has no deferred resource inflows or outflows.Which of the following statements is always true?

Accepted Answer

A) fund balance is negative 
B) cash is less than short-term receivables 
C) payables exceed receivables 
D) payables exceed cash 
A) fund balance is negative 
B) cash is less than short-term receivables 
C) payables exceed receivables 
D) payables exceed cash

Which of the following terms best describes the types of assets accounted for in governmental-type funds?

Which of the following statements about capital projects funds is true?

Governmental accounting normally does not

Under modified accrual accounting,when are revenues considered to be "available?"

In governmental accounting,a fund is best defined as:

The Dillard Park Fund is used to account for a private donation by Mr.and Mrs.Bud Dillard.When making the donation,the Dillard's stipulated that only the income from this fund could be used for the operations of Dillard Park,a city owned park.The Dillard Park Fund is a:

A local government sells bonds having a face value of $1,000,000 at par.The bond proceeds will be accounted for in a Capital Projects Fund.What account will be credited to offset the debit to cash?

A long-term loan from the General Fund to another fund is reported in the General Fund as:

Within a fund,which of the following results from using the current financial resources measurement focus?

A governmental fund has total liabilities in excess of its total assets at the end of the fiscal year.It has no deferred resource inflows or outflows.Which of the following statements is always true?

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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Exam 2: The Use of Funds in Governmental Accounting

Which of the following terms best describes the types of assets accounted for in governmental-type funds?

Which of the following statements about capital projects funds is true?

Governmental accounting normally does not

Under modified accrual accounting,when are revenues considered to be "available?"

In governmental accounting,a fund is best defined as:

The Dillard Park Fund is used to account for a private donation by Mr.and Mrs.Bud Dillard.When making the donation,the Dillard's stipulated that only the income from this fund could be used for the operations of Dillard Park,a city owned park.The Dillard Park Fund is a:

A local government sells bonds having a face value of $1,000,000 at par.The bond proceeds will be accounted for in a Capital Projects Fund.What account will be credited to offset the debit to cash?

A long-term loan from the General Fund to another fund is reported in the General Fund as:

Within a fund,which of the following results from using the current financial resources measurement focus?

A governmental fund has total liabilities in excess of its total assets at the end of the fiscal year.It has no deferred resource inflows or outflows.Which of the following statements is always true?

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

Filters