Question 1

Defined Benefit Pension Plans are required to pay retired employees an amount determined by formula, rather than the amount contributed to the plan.

Accepted Answer

A) True 
 B)False  True

Question 2

Schedules are required for pension and other employee benefit trust funds as Required Supplementary Information RSI.

Accepted Answer

A) True 
 B)False  True

Question 3

Washington County assumed the responsibility of collecting property taxes for all governments within its boundaries. In order to reimburse the county for expenditures for administering the Tax Agency Fund, the Tax Agency Fund is to deduct 1.5 percent from the collections from the city and school district. The total amount deducted is to be added to the collections for the county and remitted to the County General Fund. You are to record the following transactions in the accounts of the Washington County Tax Agency Fund.
 1. Current year tax levies to be collected by the Tax Agency Fund were:

$\begin{array}{llcc}
  \text { County General Fund } &  \$9,800,000\
 \text {Town of Samuels } &6,200,000\
 \text { Washington County School District } &9,600,000\
\end{array}$

2. In the first half of the year $\$ 4,120,000$ was collected for the County General Fund, $\$ 3,456,000$ for the Town and $\$ 4,608,000$ for the School District.

3.Liabilities to all three units were recorded

Accepted Answer

$\begin{array}{llcc}
&\underline{\text { Debits }}&\underline{\text { Credits }}\

1. \text { Taxes Receivable for Other Governments } & 15,800,000 \
 \text {Due to Other Governments  } &&15,800,000\
\
2. \text { Cash } &8,064,000\
 \text { Taxes Receivable for Other Govermments s } &&8,064,000\
\
3. \text {   Due to Other Governments} &8,064,000\
 \text {  Due to County General Fund} &&\$120,960\
  \text {Due to Town of Samuels  } & &3,404,160 \
 \text {  Due to Washington County SchoolDistrict} &&4,538,880\
\end{array}$

$\begin{array}{llcc}
&\underline{\text { Levy}}&\underline{ \text { Collections }} &\underline{ \text { Fee }} & \underline{\text { Amount Due }}\
  \text {County General Fund  } && \text { n/a}&120,960&\$120,960  \
 \text {   Town of Samuels} &\$6,200,000&3,456,000&51,840)&3,404,160\
 \text {  Washington County School } &\
 \text { District  } &\
 \text {  } &\underline{9,600,000}&\underline{4,608,000}&\underline{69,120)}&\underline{4,538,880}\
 \text {  } &\$15,800,000&\$8,064,000&-0-&\$8,064,000\
\end{array}$

Question 4

______ funds are created when individuals or organizations contribute resources with the agreement that the income will be used to the citizenry or the government's programs.

Accepted Answer

A)  Agency 
B)  Investment trust 
C)  Private-purpose trust 
D)  Permanent 
A)  Agency 
B)  Investment trust 
C)  Private-purpose trust 
D)  Permanent

Question 5

Fiduciary Funds are not included in the Government-wide Financial Statements because:

Accepted Answer

A)  These Funds use the modified accrual basis of accounting. 
B)  The resources are not available to the reporting unit. 
C)  The government doesn't keep track of these types of funds. 
D)  These funds do not have a material effect on the financial statements. 
A)  These Funds use the modified accrual basis of accounting. 
B)  The resources are not available to the reporting unit. 
C)  The government doesn't keep track of these types of funds. 
D)  These funds do not have a material effect on the financial statements.

Question 6

How are Fiduciary Funds presented in the Government-wide Financial Statements?

Accepted Answer

A)  Combined with Internal Service Funds. 
B)  Combined with Business activities. 
C)  Combined with governmental activities. 
D)  None of the Above. 
A)  Combined with Internal Service Funds. 
B)  Combined with Business activities. 
C)  Combined with governmental activities. 
D)  None of the Above.

Question 7

When a government is the sponsor of a multi-government investment pool, the government should report the external portion of those trust assets in an:

Accepted Answer

A)  Pension Trust Fund. 
B)  Investment Trust Fund. 
C)  Private-Purpose Trust Fund. 
D)  Agency Fund. 
A)  Pension Trust Fund. 
B)  Investment Trust Fund. 
C)  Private-Purpose Trust Fund. 
D)  Agency Fund.

Question 8

Which of the following is true regarding pension and other employee benefit trust funds?

Accepted Answer

A)  The actuarially computed Net Pension Liability is reported in the Statement of Fiduciary Net Position. 
B)  While full accrual accounting is used, the terms "additions" and "deductions" are used in the Statement of Changes in Fiduciary Net Position in lieu of "revenues" and "expenses." 
C)  Both of the above. 
D)  Neither of the above. 
A)  The actuarially computed Net Pension Liability is reported in the Statement of Fiduciary Net Position. 
B)  While full accrual accounting is used, the terms "additions" and "deductions" are used in the Statement of Changes in Fiduciary Net Position in lieu of "revenues" and "expenses." 
C)  Both of the above. 
D)  Neither of the above.

Question 9

Which of the following is true regarding pension accounting and reporting?

Accepted Answer

A)  Local governments include only the pension plans for which it is trustee in pension trust funds Statement of Fiduciary Net Position. 
B)  The pension trust fund Statement of Fiduciary Net Position reflects the net pension liability the excess of the total benefit obligation over the net position available for benefits. 
C)  Both A and B. 
D)  Neither A nor B. 
A)  Local governments include only the pension plans for which it is trustee in pension trust funds Statement of Fiduciary Net Position. 
B)  The pension trust fund Statement of Fiduciary Net Position reflects the net pension liability the excess of the total benefit obligation over the net position available for benefits. 
C)  Both A and B. 
D)  Neither A nor B.

Question 10

Which type of pension plan is required to pay out a certain sum, generally based on a percentage of salary upon retirement and the number of years of service?

Accepted Answer

A)  Defined Benefit 
B)  Defined Contribution 
C)  Contributory 
D)  Noncontributory 
A)  Defined Benefit 
B)  Defined Contribution 
C)  Contributory 
D)  Noncontributory

Question 11

A government sponsoring a defined benefit pension plan changes an assumption underlying the measurement of the net pension liability. Assuming the estimate of this liability increases, how will this be reflected in the government-wide statements?

Accepted Answer

A)  As an increase in the net pension liability and an expense. 
B)  As an increase in the net pension liability and an intangible asset. 
C)  As an increase in the net pension liability and a deferred outflow of resources. 
D)  None of the above, changes in estimated are not recorded. 
A)  As an increase in the net pension liability and an expense. 
B)  As an increase in the net pension liability and an intangible asset. 
C)  As an increase in the net pension liability and a deferred outflow of resources. 
D)  None of the above, changes in estimated are not recorded.

Question 12

Investment Trust Funds account for only the external portion of investment pools.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true regarding the financial statements of fiduciary funds?

Accepted Answer

A)  Fiduciary funds' financial statements include the Statement of Fiduciary Net Position, the Statement of Changes in Fiduciary Net Position, and the Statement of Fiduciary Cash Flows. 
B)  Fiduciary funds are accounted for using the economic resources measurement focus and accrual basis of accounting. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Fiduciary funds' financial statements include the Statement of Fiduciary Net Position, the Statement of Changes in Fiduciary Net Position, and the Statement of Fiduciary Cash Flows. 
B)  Fiduciary funds are accounted for using the economic resources measurement focus and accrual basis of accounting. 
C)  Both of the above. 
D)  Neither of the above.

Question 14

Fiduciary Fund activities report in terms of Additions and Deductions.

Accepted Answer

A) True 
 B)False

Question 15

An agency fund is used when a contributor and a government agree that the principal and/or income of trust assets is for the benefit of individuals, organizations, or other governments

Accepted Answer

A) True 
 B)False

Question 16

Which of the Fiduciary Funds listed below is used to account for the assets held by a government acting as an agent for one or more other governmental units?

Accepted Answer

A)  Private-purpose Trust Fund. 
B)  Permanent Fund. 
C)  Pension Fund. 
D)  Agency Fund. 
A)  Private-purpose Trust Fund. 
B)  Permanent Fund. 
C)  Pension Fund. 
D)  Agency Fund.

Question 17

Agency fund assets and liabilities are to be recognized:

Accepted Answer

A)  When the earnings process is complete and collection is reasonably assured. 
B)  At the time the government becomes responsible for the assets. 
C)  When they are available and measurable. 
D)  Only in the government-wide financial statements. 
A)  When the earnings process is complete and collection is reasonably assured. 
B)  At the time the government becomes responsible for the assets. 
C)  When they are available and measurable. 
D)  Only in the government-wide financial statements.

Question 18

Agency funds are not included in the Statement of Changes in Net Position because they have no revenues additions or expenses deductions.

Accepted Answer

A) True 
 B)False

Question 19

Describe the accounting treatment of investments with determinable fair values reported in a Private-Purpose Trust Fund

Accepted Answer

F1F1F1S1F1F1F10Investments in a private

Question 20

Which of the following is true regarding fiduciary funds?

Accepted Answer

A)  Fiduciary funds are included in the fund basis statements but not in the government-wide. 
B)  Fiduciary funds are reported by fund type, not as major funds. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Fiduciary funds are included in the fund basis statements but not in the government-wide. 
B)  Fiduciary funds are reported by fund type, not as major funds. 
C)  Both of the above. 
D)  Neither of the above.

Defined Benefit Pension Plans are required to pay retired employees an amount determined by formula, rather than the amount contributed to the plan.

Schedules are required for pension and other employee benefit trust funds as Required Supplementary Information RSI.

______ funds are created when individuals or organizations contribute resources with the agreement that the income will be used to the citizenry or the government's programs.

Fiduciary Funds are not included in the Government-wide Financial Statements because:

How are Fiduciary Funds presented in the Government-wide Financial Statements?

When a government is the sponsor of a multi-government investment pool, the government should report the external portion of those trust assets in an:

Which of the following is true regarding pension and other employee benefit trust funds?

Which of the following is true regarding pension accounting and reporting?

Which type of pension plan is required to pay out a certain sum, generally based on a percentage of salary upon retirement and the number of years of service?

A government sponsoring a defined benefit pension plan changes an assumption underlying the measurement of the net pension liability. Assuming the estimate of this liability increases, how will this be reflected in the government-wide statements?

Investment Trust Funds account for only the external portion of investment pools.

Which of the following is true regarding the financial statements of fiduciary funds?

Fiduciary Fund activities report in terms of Additions and Deductions.

An agency fund is used when a contributor and a government agree that the principal and/or income of trust assets is for the benefit of individuals, organizations, or other governments

Which of the Fiduciary Funds listed below is used to account for the assets held by a government acting as an agent for one or more other governmental units?

Agency fund assets and liabilities are to be recognized:

Agency funds are not included in the Statement of Changes in Net Position because they have no revenues additions or expenses deductions.

Describe the accounting treatment of investments with determinable fair values reported in a Private-Purpose Trust Fund

Which of the following is true regarding fiduciary funds?

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

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Government-Wide Statements: Capital Assets; Long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Exam 7: Fiduciary Funds, Interfund Transactions

Defined Benefit Pension Plans are required to pay retired employees an amount determined by formula, rather than the amount contributed to the plan.

Schedules are required for pension and other employee benefit trust funds as Required Supplementary Information RSI.

______ funds are created when individuals or organizations contribute resources with the agreement that the income will be used to the citizenry or the government's programs.

Fiduciary Funds are not included in the Government-wide Financial Statements because:

How are Fiduciary Funds presented in the Government-wide Financial Statements?

When a government is the sponsor of a multi-government investment pool, the government should report the external portion of those trust assets in an:

Which of the following is true regarding pension and other employee benefit trust funds?

Which of the following is true regarding pension accounting and reporting?

Which type of pension plan is required to pay out a certain sum, generally based on a percentage of salary upon retirement and the number of years of service?

A government sponsoring a defined benefit pension plan changes an assumption underlying the measurement of the net pension liability. Assuming the estimate of this liability increases, how will this be reflected in the government-wide statements?

Investment Trust Funds account for only the external portion of investment pools.

Which of the following is true regarding the financial statements of fiduciary funds?

Fiduciary Fund activities report in terms of Additions and Deductions.

An agency fund is used when a contributor and a government agree that the principal and/or income of trust assets is for the benefit of individuals, organizations, or other governments

Which of the Fiduciary Funds listed below is used to account for the assets held by a government acting as an agent for one or more other governmental units?

Agency fund assets and liabilities are to be recognized:

Agency funds are not included in the Statement of Changes in Net Position because they have no revenues additions or expenses deductions.

Describe the accounting treatment of investments with determinable fair values reported in a Private-Purpose Trust Fund

Which of the following is true regarding fiduciary funds?

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

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Government-Wide Statements: Capital Assets; Long-Term Debt

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters