Question 1

Works of art and historical treasures purchased by the general fund should be reported as:

Accepted Answer

A)  I only. 
B)  II only. 
C)  Both I and II. 
D)  Neither I nor II. 
A)  I only. 
B)  II only. 
C)  Both I and II. 
D)  Neither I nor II.

Question 2

Which of the following describes how a governmental fund (e.g. general fund) accounts for a capital lease?

Accepted Answer

A)  Noncurrent liability 
B)  Bond accounting 
C)  An asset and a lease liability 
D)  None of the above identifies the appropriate way to account for a capital lease. 
A)  Noncurrent liability 
B)  Bond accounting 
C)  An asset and a lease liability 
D)  None of the above identifies the appropriate way to account for a capital lease.

Question 3

Which of the financial statements described below is prepared by the general fund of a state or local government?

Accepted Answer

A)  A statement of cash flows. 
B)  An income statement. 
C)  A statement of revenues, expenses, and changes in retained earnings. 
D)  A statement of revenues, expenditures, and changes in fund balance. 
A)  A statement of cash flows. 
B)  An income statement. 
C)  A statement of revenues, expenses, and changes in retained earnings. 
D)  A statement of revenues, expenditures, and changes in fund balance.

Question 4

The general fund of Hatteras acquired a fire truck during the fiscal year ended June 30, 20X9. The purchase order for the fire truck was recorded on February 15, 20X9. Hatteras' acquisition of the fire truck required which of the following sequences of accounting activities?
I. Appropriation
II. Encumbrance
III. Expenditure

Accepted Answer

A)  II, I, III. 
B)  I, III, II. 
C)  III, II, I. 
D)  I, II, III. 
A)  II, I, III. 
B)  I, III, II. 
C)  III, II, I. 
D)  I, II, III.

Question 5

GASB 31 "Accounting for Financial Reporting for Certain Investments and for External Reporting Investment Pools," establishes a general rule that government entities value investments in option contracts, open-ended mutual funds, and debt securities for balance sheet presentation at:

Accepted Answer

A)  lower of cost or market. 
B)  fair value. 
C)  cost. 
D)  amortized cost. 
A)  lower of cost or market. 
B)  fair value. 
C)  cost. 
D)  amortized cost.

Question 6

Which of the following statements is (are) correct about the funds used by governmental entities?

Accepted Answer

A)  I only 
B)  II only 
C)  I and II 
D)  Neither I nor II 
A)  I only 
B)  II only 
C)  I and II 
D)  Neither I nor II

Question 7

GASB 34 established four types of interfund activities. Interfund activities are recognized as revenue in a governmental fund for an:

Accepted Answer

A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D 
A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D

Question 8

Based on the preceding information, which of the following would be the correct account balances for 20X8 if Gotham City used the consumption method of accounting for inventories?

Accepted Answer

A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D 
A)  Option A 
B)  Option B 
C)  Option C 
D)  Option D

Question 9

The general fund of Park City acquired computer equipment at a cost of $50,000 on May 18, 20X9. To record acquisition of this equipment, the general fund of Park City should debit:

Accepted Answer

A)  expenditures. 
B)  encumbrances. 
C)  equipment. 
D)  vouchers payable. 
A)  expenditures. 
B)  encumbrances. 
C)  equipment. 
D)  vouchers payable.

Works of art and historical treasures purchased by the general fund should be reported as:

Which of the following describes how a governmental fund (e.g. general fund) accounts for a capital lease?

Which of the financial statements described below is prepared by the general fund of a state or local government?

GASB 31 "Accounting for Financial Reporting for Certain Investments and for External Reporting Investment Pools," establishes a general rule that government entities value investments in option contracts, open-ended mutual funds, and debt securities for balance sheet presentation at:

Which of the following statements is (are) correct about the funds used by governmental entities?

GASB 34 established four types of interfund activities. Interfund activities are recognized as revenue in a governmental fund for an:

Based on the preceding information, which of the following would be the correct account balances for 20X8 if Gotham City used the consumption method of accounting for inventories?

The general fund of Park City acquired computer equipment at a cost of $50,000 on May 18, 20X9. To record acquisition of this equipment, the general fund of Park City should debit:

Intercorporate Acquisitions and Investments in Other Entities

Reporting Intercorporate Investments and Consolidation of Wholly Owned Subsidiaries With No Differential

The Reporting Entity and Consolidation of Less-Than-Wholly-Owned Subsidiaries With No Differential

Consolidation of Wholly Owned Subsidiaries Acquired at More Than Book Value

Consolidation of Less-Than-Wholly-Owned Subsidiaries Acquired at More Than Book Value

Intercompany Inventory Transactions

Intercompany Transfers of Services and Noncurrent Assets

Multinational Accounting: Foreign Currency Transactions and Financial Instruments

Multinational Accounting: Issues in Financial Reporting and Translation of Foreign Entity Statements

Partnerships: Formation, Operation, and Changes in Membership

Partnerships: Liquidation

Governmental Entities: Special Funds and Government-Wide Financial Statements

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Exam 12: Governmental Entities: Introduction and General Fund Accounting

Works of art and historical treasures purchased by the general fund should be reported as:

Which of the following describes how a governmental fund (e.g. general fund) accounts for a capital lease?

Which of the financial statements described below is prepared by the general fund of a state or local government?

GASB 31 "Accounting for Financial Reporting for Certain Investments and for External Reporting Investment Pools," establishes a general rule that government entities value investments in option contracts, open-ended mutual funds, and debt securities for balance sheet presentation at:

Which of the following statements is (are) correct about the funds used by governmental entities?

GASB 34 established four types of interfund activities. Interfund activities are recognized as revenue in a governmental fund for an:

Based on the preceding information, which of the following would be the correct account balances for 20X8 if Gotham City used the consumption method of accounting for inventories?

The general fund of Park City acquired computer equipment at a cost of $50,000 on May 18, 20X9. To record acquisition of this equipment, the general fund of Park City should debit:

Intercorporate Acquisitions and Investments in Other Entities

Reporting Intercorporate Investments and Consolidation of Wholly Owned Subsidiaries With No Differential

The Reporting Entity and Consolidation of Less-Than-Wholly-Owned Subsidiaries With No Differential

Consolidation of Wholly Owned Subsidiaries Acquired at More Than Book Value

Consolidation of Less-Than-Wholly-Owned Subsidiaries Acquired at More Than Book Value

Intercompany Inventory Transactions

Intercompany Transfers of Services and Noncurrent Assets

Multinational Accounting: Foreign Currency Transactions and Financial Instruments

Multinational Accounting: Issues in Financial Reporting and Translation of Foreign Entity Statements

Partnerships: Formation, Operation, and Changes in Membership

Partnerships: Liquidation

Governmental Entities: Special Funds and Government-Wide Financial Statements

Filters