Question 1

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 2

Bay City received a federal grant to provide health care services to low income mothers and children.When should the revenues be recognized?

Accepted Answer

A) As health care services are provided. 
B) When the awarding of the grant is announced. 
C) When the grant money is received. 
D) At the end of Bay City's fiscal year. 
E) When the grant money is receivable. 
A) As health care services are provided. 
B) When the awarding of the grant is announced. 
C) When the grant money is received. 
D) At the end of Bay City's fiscal year. 
E) When the grant money is receivable.

Question 3

The reporting of the fund balance of governmental funds will result in a maximum of ___________categories:

Accepted Answer

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

Question 4

The town council adopted an annual budget estimating general revenues of $2,000,000,approved expenditures of $1,700,000 and other financing for other funds of $130,000.
Required:
Record the journal entry to record the budget and identify the fund in which it is recorded.

Accepted Answer

The answer of The town council adopted an annual budget...

Question 5

The city of Kamen collected $17,000 from parking meters that must be transferred to the county government.
Required:
For fund-based financial statements,prepare the journal entry for this transaction including the fund type in which the entry would have been recorded.

Accepted Answer

The answer of The city of Kamen collected $17,000 from...

Question 6

On January 1,2011,Wakefield City purchased $40,000 office supplies.During the year $35,000 of these supplies were used.
Required:
Record the journal entries for these transactions using the consumption method.(Disregard the encumbrance entries. )

Accepted Answer

The answer of On January 1,2011,Wakefield City purchased $40,000 office...

Question 7

A $910,000 bond was issued on October 1,2011 to build a new road.The bonds carried a 6% interest rate and are due in 10 years.
Required:
(A. )Prepare the required journal entry in the Capital Projects Fund on October 1 for the Fund-Based Financial Statements.
(B. )Prepare the required journal entry for the Government-Wide Financial Statements.

Accepted Answer

The answer of A $910,000 bond was issued on October...

Question 8

What are the five types of governmental funds?

Accepted Answer

The five types of governmental

Question 9

According to GASB Concepts Statement No.1,what are the three groups of primary users of external state and local governmental financial reports?

Accepted Answer

A) The Securities Exchange Commission,the citizenry,and legislative and oversight bodies. 
B) The Securities Exchange Commission,legislative and oversight bodies,and investors and creditors. 
C) The Securities Exchange Commission,the citizenry,and investors and creditors. 
D) The citizenry,legislative and oversight bodies,and investors and creditors. 
E) The citizenry,management,and the Governmental Accounting Office. 
A) The Securities Exchange Commission,the citizenry,and legislative and oversight bodies. 
B) The Securities Exchange Commission,legislative and oversight bodies,and investors and creditors. 
C) The Securities Exchange Commission,the citizenry,and investors and creditors. 
D) The citizenry,legislative and oversight bodies,and investors and creditors. 
E) The citizenry,management,and the Governmental Accounting Office.

Question 10

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 they 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 they are required or permitted to be used. 
E) in the period in which the tax bills are mailed.

Question 11

The city of Kamen transferred $27,000 into a Pension Trust Fund.Of this amount,$19,000 was contributed by the city with the remainder coming from the employees.
Required:
For fund-based financial statements,prepare the journal entry for this transaction including the fund type in which the entry would have been recorded.

Accepted Answer

Pension Tr

Question 12

How do the balance sheet and statement of revenues,expenditures,and changes in fund balances of governmental funds differ from the financial statement presentation for the governmental activities in the government-wide statement of net assets and statement of activities?
 (1)Internal service funds are not included in the fund-based financial statements of governmental funds but could be reported in the governmental activities of government-wide financial statements.
(2)The economic resources measurement basis is used for fund-based financial statements of governmental funds and the current financial resources measurement basis is used for governmental activities in the government-wide financial statements.
(3)Modified accrual accounting is used for fund-based financial statements of governmental funds to time revenues and expenditures and accrual accounting is used for governmental activities of government-wide financial statements.
(4)The financial statements of governmental funds for fund-based financial statements are the same as governmental activities in government-wide financial statements but with different titles of the financial statements.

Accepted Answer

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

Question 13

On July 12,2011,Fred City ordered a new computer at an anticipated cost of $114,400.The computer was received on July 16 with an actual cost of $116,220.Payment was subsequently made on August 15,2011.
Required:
(A. )Prepare all the required journal entries and identify the type of fund in which each entry was recorded for the Fund-Based Financial Statements.
(B. )Prepare all the required journal entries and identify the type of fund in which each entry was recorded for the Government-Wide Financial Statements.

Accepted Answer

The answer of On July 12,2011,Fred City ordered a new...

Question 14

What account is debited in the general fund when equipment is received by a governmental entity?

Accepted Answer

A) Expenditures. 
B) Encumbrances. 
C) Plant assets. 
D) Accounts Payable. 
E) Fund Balance-Reserve for Encumbrances. 
A) Expenditures. 
B) Encumbrances. 
C) Plant assets. 
D) Accounts Payable. 
E) Fund Balance-Reserve for Encumbrances.

Question 15

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 Fund-Based Financial Statements,in what fund will Bonds Payable appear?

Accepted Answer

A) General Fund. 
B) Capital Projects Fund. 
C) Permanent Fund. 
D) Debt Service Fund. 
E) Bonds Payable do not appear in Fund-Based Financial Statements. 
A) General Fund. 
B) Capital Projects Fund. 
C) Permanent Fund. 
D) Debt Service Fund. 
E) Bonds Payable do not appear in Fund-Based Financial Statements.

Question 16

When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children,which fund should the money be recorded in?

Accepted Answer

A) the General Fund. 
B) an Expendable Trust Fund. 
C) a Permanent Fund. 
D) an Agency Fund. 
E) a Special Revenue Fund. 
A) the General Fund. 
B) an Expendable Trust Fund. 
C) a Permanent Fund. 
D) an Agency Fund. 
E) a Special Revenue Fund.

Question 17

The school system had some booklets printed by a local print shop on September 22,2011.The school system was charged $1,560 for the printing,but the bill is not due until October.
Required:
(A. )Prepare the required journal entry in the General Fund for the Fund-Based Financial Statements.
(B. )Prepare the required journal entry for the Government-Wide Financial Statements.

Accepted Answer

The answer of The school system had some booklets printed...

Question 18

What are the broad types or 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 19

When a city collects fees from citizens who use the public swimming pool,the money should be recorded in

Accepted Answer

A) the General Fund. 
B) an Enterprise Fund. 
C) a Capital Projects Fund. 
D) an Agency Fund. 
E) an Internal Service Fund. 
A) the General Fund. 
B) an Enterprise Fund. 
C) a Capital Projects Fund. 
D) an Agency Fund. 
E) an Internal Service Fund.

Question 20

Which type of fund is not included in the Government-Wide Financial Statements?

Accepted Answer

A) Governmental Funds 
B) Proprietary Funds 
C) Fiduciary Funds 
D) Debt Service Funds 
E) Special Revenue Funds 
A) Governmental Funds 
B) Proprietary Funds 
C) Fiduciary Funds 
D) Debt Service Funds 
E) Special Revenue Funds

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

Bay City received a federal grant to provide health care services to low income mothers and children.When should the revenues be recognized?

The reporting of the fund balance of governmental funds will result in a maximum of ___________categories:

The town council adopted an annual budget estimating general revenues of $2,000,000,approved expenditures of $1,700,000 and other financing for other funds of $130,000. Required: Record the journal entry to record the budget and identify the fund in which it is recorded.

The city of Kamen collected $17,000 from parking meters that must be transferred to the county government. Required: For fund-based financial statements,prepare the journal entry for this transaction including the fund type in which the entry would have been recorded.

On January 1,2011,Wakefield City purchased $40,000 office supplies.During the year $35,000 of these supplies were used. Required: Record the journal entries for these transactions using the consumption method.(Disregard the encumbrance entries. )

What are the five types of governmental funds?

According to GASB Concepts Statement No.1,what are the three groups of primary users of external state and local governmental financial reports?

Revenue from property taxes should be recorded in the General Fund

What account is debited in the general fund when equipment is received by a governmental entity?

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 Fund-Based Financial Statements,in what fund will Bonds Payable appear?

When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children,which fund should the money be recorded in?

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

When a city collects fees from citizens who use the public swimming pool,the money should be recorded in

Which type of fund is not included in the Government-Wide Financial Statements?

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 Flo

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Partnerships: Formation and Operations

Partnerships: Termination and Liquidation

Accounting for State and Local Governments Part 2

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Exam 11: Accounting for State and Local Governments Part 1

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

Bay City received a federal grant to provide health care services to low income mothers and children.When should the revenues be recognized?

The reporting of the fund balance of governmental funds will result in a maximum of ___________categories:

The town council adopted an annual budget estimating general revenues of $2,000,000,approved expenditures of $1,700,000 and other financing for other funds of $130,000. Required: Record the journal entry to record the budget and identify the fund in which it is recorded.

The city of Kamen collected $17,000 from parking meters that must be transferred to the county government. Required: For fund-based financial statements,prepare the journal entry for this transaction including the fund type in which the entry would have been recorded.

On January 1,2011,Wakefield City purchased $40,000 office supplies.During the year $35,000 of these supplies were used. Required: Record the journal entries for these transactions using the consumption method.(Disregard the encumbrance entries. )

What are the five types of governmental funds?

According to GASB Concepts Statement No.1,what are the three groups of primary users of external state and local governmental financial reports?

Revenue from property taxes should be recorded in the General Fund

What account is debited in the general fund when equipment is received by a governmental entity?

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 Fund-Based Financial Statements,in what fund will Bonds Payable appear?

When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children,which fund should the money be recorded in?

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

When a city collects fees from citizens who use the public swimming pool,the money should be recorded in

Which type of fund is not included in the Government-Wide Financial Statements?

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 Flo

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Partnerships: Formation and Operations

Partnerships: Termination and Liquidation

Accounting for State and Local Governments Part 2

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