Question 1

Governmental-type activities fund statements must use accrual basis when preparing government-wide financial statements.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following funds is not a Fiduciary Fund?

Accepted Answer

A)   Investment Trust Fund
B)   Private Purpose Trust Fund
C)   Permanent Fund
D)   Pension Fund C

Question 3

Financial reports for state and local governments are well suited for all the following EXCEPT?

Accepted Answer

A)   Assessing financial condition and results of operations.
B)   Comparing actual results with the legally adopted budget.
C)   Measuring the effectiveness of government services such as police and fire protection.
D)   Assisting in determining compliance with finance-related laws and regulations. C

Question 4

A capital projects fund classified under governmental funds…

Accepted Answer

A)   Accounts for resources that are legally restricted so only earnings, not principal, may be expended, and for purposes to benefit the government and its citizenry.
B)   Accounts for most of the basic services provided by the governmental unit.
C)   Accounts for and reports financial resources that are restricted, committed, or assigned to expenditure for capital projects
D)   Accounts for services provided by one department of a government to another

Question 5

FASAB, GASB and FASB standards are set forth primarily in documents called statements.

Accepted Answer

A) True 
 B)False

Question 6

Contrast the economic resources measurement focus and the current financial resources measurement focus with regard to the accounting treatment of long-term debt.

Accepted Answer

The answer of Contrast the economic resources measurement focus and...

Question 7

General fixed assets of the government are reported both in the government-wide financial statements and the governmental fund financial statements.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not one of the objectives of Federal Financial Reporting, as outlined in SFFAC 1, which was issued by the FASAB?

Accepted Answer

A)   Financial reporting should enable evaluation of the success rate of programs.
B)   Financial reporting should enable evaluation of the service efforts, costs and accomplishments of the reporting entity.
C)   Financial reporting should reveal whether financial systems and controls are adequate.
D)   Financial reporting should demonstrate accountability with regard to raising and expending money.

Question 9

The ______ Fund accounts for and reports the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purpose other than debt service or capital projects.

Accepted Answer

A)   Agency
B)   Enterprise
C)   Special revenue
D)   General

Question 10

A city government makes its semiannual payment of interest on revenue bonds issued to pay for the construction of additional public transit stations. Which fund would account for the payment?

Accepted Answer

A)   Debt service fund
B)   Capital projects fund
C)   Enterprise fund
D)   Internal service fund

Question 11

Which of the following is not an objective of federal financial reporting?

Accepted Answer

A)   Budgetary Integrity
B)   Increase Taxpayer Awareness
C)   Stewardship
D)   Operating Performance

Question 12

The GASB is under the oversight of:

Accepted Answer

A)   GAO.
B)   FASAB.
C)   FAF.
D)   FASB.

Question 13

Which of the following funds is used to account for the payment of principal and interest of general long term debt of a government?

Accepted Answer

A)   Capital Projects Fund
B)   Internal Service Fund
C)   Agency Fund
D)   Debt Service Fund

Question 14

What is the definition of governmental organizations agreed upon by the FASB and GASB?

Accepted Answer

The answer of What is the definition of governmental organizations...

Question 15

Fund accounting exists primarily to provide assurance that resources are used according to legal or donor restrictions.

Accepted Answer

A) True 
 B)False

Question 16

The ______ Fund accounts for all resources other than those required to be accounted for in other funds.

Accepted Answer

A)   General
B)   Enterprise
C)   Agency
D)   Special revenue

Question 17

Level "A" GAAP for Cook County Hospital, a public hospital, would be established by the:

Accepted Answer

A)   Governmental Accounting Standards Board.
B)   Financial Accounting Standards Board.
C)   Hospital Financial Management Association.
D)   American Institute of Certified Public Accountants.

Question 18

Notre Dame University, a private institution, has level "A" GAAP established by the:

Accepted Answer

A)   American Institute of Certified Public Accountants.
B)   Governmental Accounting Standards Board.
C)   National Association of College and University Business Officers.
D)   Financial Accounting Standards Board.

Question 19

Although certain supplementary information may not be required, if presented, it must follow GASB guidance regarding its format and content.

Accepted Answer

A) True 
 B)False

Question 20

A government may have two or more General Funds.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Governmental-type activities fund statements must use accrual basis when preparing government-wide financial statements.

Which of the following funds is not a Fiduciary Fund?

Financial reports for state and local governments are well suited for all the following EXCEPT?

A capital projects fund classified under governmental funds…

FASAB, GASB and FASB standards are set forth primarily in documents called statements.

Contrast the economic resources measurement focus and the current financial resources measurement focus with regard to the accounting treatment of long-term debt.

General fixed assets of the government are reported both in the government-wide financial statements and the governmental fund financial statements.

Which of the following is not one of the objectives of Federal Financial Reporting, as outlined in SFFAC 1, which was issued by the FASAB?

The ______ Fund accounts for and reports the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purpose other than debt service or capital projects.

A city government makes its semiannual payment of interest on revenue bonds issued to pay for the construction of additional public transit stations. Which fund would account for the payment?

Which of the following is not an objective of federal financial reporting?

The GASB is under the oversight of:

Which of the following funds is used to account for the payment of principal and interest of general long term debt of a government?

What is the definition of governmental organizations agreed upon by the FASB and GASB?

Fund accounting exists primarily to provide assurance that resources are used according to legal or donor restrictions.

The ______ Fund accounts for all resources other than those required to be accounted for in other funds.

Level "A" GAAP for Cook County Hospital, a public hospital, would be established by the:

Notre Dame University, a private institution, has level "A" GAAP established by the:

Although certain supplementary information may not be required, if presented, it must follow GASB guidance regarding its format and content.

A government may have two or more General Funds.