Question 1

GASB Standards require that IRS 457 Deferred Compensation Plans, if administered by the governmental unit, be reported as pension trust funds.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is true regarding pension accounting and reporting for state and local governments?

Accepted Answer

A)  When the General Fund makes a contribution to a pension trust fund, the account "Expenditures" is debited. 
B)  The Statement of Changes in Fiduciary Net Position reports "additions" and "deductions," computed on the accrual basis. 
C)  Both of the above. 
D)  Neither of the above. 
A)  When the General Fund makes a contribution to a pension trust fund, the account "Expenditures" is debited. 
B)  The Statement of Changes in Fiduciary Net Position reports "additions" and "deductions," computed on the accrual basis. 
C)  Both of the above. 
D)  Neither of the above.

Question 3

Equity investments should be recorded at fair market value unless a government has sufficient investments in a company to apply the equity method.

Accepted Answer

A) True 
 B)False

Question 4

Pension trust fund financial statements would be found in the Comprehensive Annual Financial Report of a governmental reporting entity:

Accepted Answer

A)  Only if the governmental unit desires to disclose the status of employee retirement plans to its employees. 
B)  In all cases when the governmental unit has an obligation to provide funding for employee retirement. 
C)  Only if the governmental unit is the trustee for the public employee retirement plan. 
D)  Whenever governmental employees have a retirement plan, whether or not the governmental unit is obligated to provide funding. 
A)  Only if the governmental unit desires to disclose the status of employee retirement plans to its employees. 
B)  In all cases when the governmental unit has an obligation to provide funding for employee retirement. 
C)  Only if the governmental unit is the trustee for the public employee retirement plan. 
D)  Whenever governmental employees have a retirement plan, whether or not the governmental unit is obligated to provide funding.

Question 5

Assets held in by a government acting as agent for one or more other governmental units or for individuals or private organizations would be reported as private purpose trust funds.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements regarding employer reporting of pension trust funds is not correct?

Accepted Answer

A)  Governmental funds report net pension liabilities of governmental fund employees as a fund liability. 
B)  Contributions by the governmental funds are recorded as expenditures in the General Fund. 
C)  The net pension liabilities are reported in the government-wide statements. 
D)  The net pension liabilities of proprietary fund employees are reported in the proprietary fund-basis statements 
A)  Governmental funds report net pension liabilities of governmental fund employees as a fund liability. 
B)  Contributions by the governmental funds are recorded as expenditures in the General Fund. 
C)  The net pension liabilities are reported in the government-wide statements. 
D)  The net pension liabilities of proprietary fund employees are reported in the proprietary fund-basis statements

Question 7

Property that has been abandoned or property whose owners cannot be found is turned over to the state government until the legal owners can be found is known as community property.

Accepted Answer

A) True 
 B)False

Question 8

A private-purpose trust fund is created when the government is the sponsor of a multigovernment investment pool and accounts for the external portion of those trust assets.

Accepted Answer

A) True 
 B)False

Question 9

GASB requires endowments with investment real estate to report those assets at:

Accepted Answer

A)  Historical cost 
B)  Fair market value 
C)  Historical cost net of related debt 
D)  Market value net of related debt 
A)  Historical cost 
B)  Fair market value 
C)  Historical cost net of related debt 
D)  Market value net of related debt

Question 10

Fund net position will not be found in…

Accepted Answer

A)  Agency trust funds. 
B)  Pension trust funds. 
C)  Investment trust funds. 
D)  Private-purpose trust funds. 
A)  Agency trust funds. 
B)  Pension trust funds. 
C)  Investment trust funds. 
D)  Private-purpose trust funds.

Question 11

Which is true regarding the basis of accounting for fiduciary funds?

Accepted Answer

A)  All four fiduciary fund types are accounted for using the same basis of accounting and measurement focus as governmental funds. 
B)  All four fiduciary fund types are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
C)  Agency funds are accounted for using the same basis of accounting and measurement focus as governmental funds, trust funds are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
D)  Trust funds are accounted for using the same basis of accounting and measurement focus as governmental funds, and agency funds are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
A)  All four fiduciary fund types are accounted for using the same basis of accounting and measurement focus as governmental funds. 
B)  All four fiduciary fund types are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
C)  Agency funds are accounted for using the same basis of accounting and measurement focus as governmental funds, trust funds are accounted for using the same basis of accounting and measurement focus as proprietary funds. 
D)  Trust funds are accounted for using the same basis of accounting and measurement focus as governmental funds, and agency funds are accounted for using the same basis of accounting and measurement focus as proprietary funds.

Question 12

______ funds are created when individuals or organizations contribute resources with the agreement that principal and/or income will be used to benefit individuals or private organizations.

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 13

Which of the following funds is used to account for the external portion of investment pools?

Accepted Answer

A)  Special Revenue Fund 
B)  Investment Trust Fund 
C)  Enterprise Fund 
D)  Private-purpose Trust Fund 
A)  Special Revenue Fund 
B)  Investment Trust Fund 
C)  Enterprise Fund 
D)  Private-purpose Trust Fund

Question 14

A fund that is used to account for assets held by a government temporarily acting as agent for one or more other governments units or for individuals or private organizations is an:

Accepted Answer

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

Question 15

The Fiduciary Funds are included in the Government-Wide Financial Statements.

Accepted Answer

A) True 
 B)False

Question 16

A pension plan that is required to pay out only the amount that has been accumulated for each employee is a ________?

Accepted Answer

A)  Defined Benefit Plan. 
B)  Private-Purpose Plan. 
C)  Defined Withdrawal Plan. 
D)  Defined Contribution Plan. 
A)  Defined Benefit Plan. 
B)  Private-Purpose Plan. 
C)  Defined Withdrawal Plan. 
D)  Defined Contribution Plan.

Question 17

Defined contribution plans may have unfunded actuarial liabilities, and defined benefit plans do not.

Accepted Answer

A) True 
 B)False

Question 18

Statement 53 reporting of derivatives does not apply to proprietary funds.

Accepted Answer

A) True 
 B)False

Question 19

When a contributor and a government agree that the principle and/or income of trust assets is for the benefit of individuals, organizations, or other governments, a private-purpose trust has been formed.

Accepted Answer

A) True 
 B)False

Question 20

An endowment to provide scholarships would be reported in a Private-purpose Trust Fund.

Accepted Answer

A) True 
 B)False

GASB Standards require that IRS 457 Deferred Compensation Plans, if administered by the governmental unit, be reported as pension trust funds.

Which of the following is true regarding pension accounting and reporting for state and local governments?

Equity investments should be recorded at fair market value unless a government has sufficient investments in a company to apply the equity method.

Pension trust fund financial statements would be found in the Comprehensive Annual Financial Report of a governmental reporting entity:

Assets held in by a government acting as agent for one or more other governmental units or for individuals or private organizations would be reported as private purpose trust funds.

Which of the following statements regarding employer reporting of pension trust funds is not correct?

Property that has been abandoned or property whose owners cannot be found is turned over to the state government until the legal owners can be found is known as community property.

A private-purpose trust fund is created when the government is the sponsor of a multigovernment investment pool and accounts for the external portion of those trust assets.

GASB requires endowments with investment real estate to report those assets at:

Fund net position will not be found in…

Which is true regarding the basis of accounting for fiduciary funds?

______ funds are created when individuals or organizations contribute resources with the agreement that principal and/or income will be used to benefit individuals or private organizations.

Which of the following funds is used to account for the external portion of investment pools?

A fund that is used to account for assets held by a government temporarily acting as agent for one or more other governments units or for individuals or private organizations is an:

The Fiduciary Funds are included in the Government-Wide Financial Statements.

A pension plan that is required to pay out only the amount that has been accumulated for each employee is a ________?

Defined contribution plans may have unfunded actuarial liabilities, and defined benefit plans do not.

Statement 53 reporting of derivatives does not apply to proprietary funds.

When a contributor and a government agree that the principle and/or income of trust assets is for the benefit of individuals, organizations, or other governments, a private-purpose trust has been formed.

An endowment to provide scholarships would be reported in a Private-purpose Trust Fund.

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

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Exam 7: Fiduciary Funds, Interfund Transactions

GASB Standards require that IRS 457 Deferred Compensation Plans, if administered by the governmental unit, be reported as pension trust funds.

Which of the following is true regarding pension accounting and reporting for state and local governments?

Equity investments should be recorded at fair market value unless a government has sufficient investments in a company to apply the equity method.

Pension trust fund financial statements would be found in the Comprehensive Annual Financial Report of a governmental reporting entity:

Assets held in by a government acting as agent for one or more other governmental units or for individuals or private organizations would be reported as private purpose trust funds.

Which of the following statements regarding employer reporting of pension trust funds is not correct?

Property that has been abandoned or property whose owners cannot be found is turned over to the state government until the legal owners can be found is known as community property.

A private-purpose trust fund is created when the government is the sponsor of a multigovernment investment pool and accounts for the external portion of those trust assets.

GASB requires endowments with investment real estate to report those assets at:

Fund net position will not be found in…

Which is true regarding the basis of accounting for fiduciary funds?

______ funds are created when individuals or organizations contribute resources with the agreement that principal and/or income will be used to benefit individuals or private organizations.

Which of the following funds is used to account for the external portion of investment pools?

A fund that is used to account for assets held by a government temporarily acting as agent for one or more other governments units or for individuals or private organizations is an:

The Fiduciary Funds are included in the Government-Wide Financial Statements.

A pension plan that is required to pay out only the amount that has been accumulated for each employee is a ________?

Defined contribution plans may have unfunded actuarial liabilities, and defined benefit plans do not.

Statement 53 reporting of derivatives does not apply to proprietary funds.

When a contributor and a government agree that the principle and/or income of trust assets is for the benefit of individuals, organizations, or other governments, a private-purpose trust has been formed.

An endowment to provide scholarships would be reported in a Private-purpose Trust Fund.

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

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