Question 1

Enterprise funds and Internal service funds are Fiduciary Fund types.

Accepted Answer

A) True 
 B)False

Question 2

The governmental fund accounting equation is Current Assets - Current Liabilities = Fund Balance.

Accepted Answer

A) True 
 B)False

Question 3

The modified accrual basis of accounting is used for

Accepted Answer

A) governmental funds. 
B) proprietary funds. 
C) internal service funds. 
D) enterprise funds.

Question 4

The following are transactions for the city of Greenville.
a.Issued $50,000 10-year bonds.
b.Used $30,000 of the cash to buy a truck.
c.Sold the truck that was replaced which had cost $28,000,for $2,000.The old truck was fully depreciated.Residual value is zero.
d.Computed depreciation on the new truck for the year of $6,000.
Required:
Analyze the above transactions by using the accounting equation for a governmental fund.

Accepted Answer

The answer of The following are transactions for the city...

Question 5

Capital projects funds and debt service funds are governmental fund types.

Accepted Answer

A) True 
 B)False

Question 6

Approved or authorized expenditures that provide legislative control over the expenditure budget are referred to as

Accepted Answer

A) appropriations. 
B) allotments. 
C) allocations. 
D) encumbrances.

Question 7

Internal Service Funds differ from Enterprise Funds because Internal Service Funds

Accepted Answer

A) are a proprietary fund. 
B) are intended to show a profit. 
C) charge for their services. 
D) provide goods and services primarily to other government agencies.

Question 8

The following are transactions for the city of Greenville.
a.Issued $50,000 10-year bonds.
b.Used $30,000 of the cash to buy a truck.
c.Sold the truck that was replaced which had cost $28,000,for $2,000.The old truck was fully depreciated.Residual value is zero.
d.Computed depreciation on the new truck for the year of $6,000.
Required:
Analyze the above transactions by using the accounting equation for a proprietary fund.

Accepted Answer

The answer of The following are transactions for the city...

Question 9

Enterprise funds are used to account for business-type activities that serve primarily internal customers.

Accepted Answer

A) True 
 B)False

Question 10

The following are transactions for the city of Franklin.
a.Borrowed $20,000 by issuing a two-year note.
b.Purchased equipment for $6,000 cash.
c.Licenses for $700 were billed on account.
d.Accrued employee salary costs of $7,000.
e.Depreciation expense on equipment for year,$1,000.
Required:
Analyze the above transactions by using the accounting equation for a governmental fund.

Accepted Answer

The answer of The following are transactions for the city...

Exam 19: An Introduction to Accounting for State and Local Governmental Units

Enterprise funds and Internal service funds are Fiduciary Fund types.

The governmental fund accounting equation is Current Assets - Current Liabilities = Fund Balance.

The modified accrual basis of accounting is used for

Capital projects funds and debt service funds are governmental fund types.

Approved or authorized expenditures that provide legislative control over the expenditure budget are referred to as

Internal Service Funds differ from Enterprise Funds because Internal Service Funds

Enterprise funds are used to account for business-type activities that serve primarily internal customers.