Question 1

Which of the following funds are proprietary funds?

Accepted Answer

A)  Enterprise funds, investment trust funds, pension trust funds, and the General Fund. 
B)  Enterprise funds and internal service funds. 
C)  Internal service funds, special revenue funds, and enterprise funds. 
D)  Proprietary funds are not used in governmental accounting.

Question 2

"The primary purpose of an accounting system for a state or a local government is to make it possible for financial statements to demonstrate compliance with finance-related legal and contractual provisions." Explain why you believe this statement to be correct or incorrect.

Accepted Answer

The answer of "The primary purpose of an accounting system...

Question 3

For each of the following descriptive phrases, indicate the type of fund from the list.
A. Governmental funds
B. Proprietary funds
C. Fiduciary funds
________ 1. Includes permanent funds held in trust to be used for public purposes
________ 2. Sometimes referred to as self-supporting or business-like funds
________ 3. Any fund held by a government in a custodial or trustee relationship for an external party
________ 4. Used when the government collects taxes or amounts to be invested for external parties
________ 5. Enterprise and internal service funds

Accepted Answer

The answer of For each of the following descriptive phrases,...

Question 4

A city received resources that the state indicates can only be used for public works projects, such as road construction. Assuming the resources have not been expended by year end, how would the resources the city received be shown in the city's fund balances?

Accepted Answer

A)  Designated Fund Balance. 
B)  Committed Fund Balance. 
C)  Restricted Fund Balance. 
D)  Assigned Fund Balance.

Question 5

When revenues are legally restricted by external resource providers or committed by enabling legislation for particular operating purposes, a private purpose trust fund is created.

Accepted Answer

A) True 
 B)False

Question 6

The GASB concept statements indicate that an asset that is going to be converted to cash should be reported at a remeasured amount at the financial statement date.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following funds are governmental funds?

Accepted Answer

A)  General Fund, special revenue funds, capital projects funds, debt service funds, and private-purpose trust funds. 
B)  General Fund, special revenue funds, private-purpose trust funds. 
C)  General Fund, special revenue funds, debt service funds, capital projects funds, and permanent funds. 
D)  General Fund, special revenue funds, capital projects funds, debt service funds, and internal service funds.

Question 8

Deferred outflow of resources is a type of asset that is unique to government.

Accepted Answer

A) True 
 B)False

Question 9

List the seven fund financial statements that are required as part of the basic financial statements by GASB standards. What measurement focus and basis of accounting should be used in preparing each of these statements?

Accepted Answer

The answer of List the seven fund financial statements that...

Question 10

The GASB recommends that budget-to-actual comparison information be provided as which of the following?

Accepted Answer

A)  A stand-alone financial statement. 
B)  A schedule in the notes to the financial statements. 
C)  As a part of the basic financial statements. 
D)  As a required supplementary information schedule.

Question 11

The maximum sets of fund financial statements a government would present are three.

Accepted Answer

A) True 
 B)False

Question 12

Capital assets used by departments accounted for by the General Fund of a governmental unit should be accounted for in

Accepted Answer

A)  The General Fund. 
B)  The governmental activities journal. 
C)  The business-type activities journal. 
D)  The general capital assets fund.

Question 13

Which of the following is a fiduciary fund?

Accepted Answer

A)  Investment trust fund. 
B)  Special revenue fund. 
C)  Debt service fund. 
D)  Enterprise fund.

Exam 2: Principles of Accounting and Financial Reporting for State and Local Governments

Which of the following funds are proprietary funds?

"The primary purpose of an accounting system for a state or a local government is to make it possible for financial statements to demonstrate compliance with finance-related legal and contractual provisions." Explain why you believe this statement to be correct or incorrect.

A city received resources that the state indicates can only be used for public works projects, such as road construction. Assuming the resources have not been expended by year end, how would the resources the city received be shown in the city's fund balances?

When revenues are legally restricted by external resource providers or committed by enabling legislation for particular operating purposes, a private purpose trust fund is created.

The GASB concept statements indicate that an asset that is going to be converted to cash should be reported at a remeasured amount at the financial statement date.

Which of the following funds are governmental funds?

Deferred outflow of resources is a type of asset that is unique to government.

List the seven fund financial statements that are required as part of the basic financial statements by GASB standards. What measurement focus and basis of accounting should be used in preparing each of these statements?

The GASB recommends that budget-to-actual comparison information be provided as which of the following?

The maximum sets of fund financial statements a government would present are three.

Capital assets used by departments accounted for by the General Fund of a governmental unit should be accounted for in

Which of the following is a fiduciary fund?