Test
State & Local Govt - Accounting and Financial Reporting
Preguntas del test (28)
1Which of the following is a difference between financial reporting for internal service and enterprise funds?
- AInternal service funds are reported in the governmental fund financial statements.
- BInternal service funds are reported in the proprietary fund financial statements.
- CInternal service funds are generally reported in the Business-type Activities column of the government-wide financial statements.
- DInternal service funds are generally reported in the Governmental Activities column of the government-wide financial statements.
2Which of the following funds should be used if resources provided by a federal grant must be segregated and used for counseling of youthful offenders?
- APrivate-purpose trust fund.
- BEnterprise fund.
- CInternal service fund.
- DSpecial revenue fund.
3In which of the following funds would it not be appropriate to record depreciation of capital assets?
- ASpecial revenue fund.
- BEnterprise.
- CInternal service.
- DPension trust.
4Capital assets used by an enterprise fund should be accounted for in the
- AEnterprise fund and depreciation on the capital assets should be recorded.
- BBusiness-type activities journal but no depreciation on the capital assets should be recorded.
- CGovernmental activities journal and depreciation on the capital assets should be recorded.
- DEnterprise fund but no depreciation on the capital assets should be recorded.
5A major governmental fund is one that has one or more elements (e.g., assets, liabilities, revenues, or expenditures) that is at least:
- AFive percent of the corresponding element(s) of total governmental funds and 10 percent of the corresponding element(s) of total governmental and enterprise funds combined.
- BTen percent of the corresponding element(s) of total governmental funds and 10 percent of the corresponding element(s) of total governmental and enterprise funds combined.
- CFive percent of the corresponding element(s) of total governmental funds and five percent of the corresponding element(s) of total governmental and enterprise funds combined.
- DTen percent of the corresponding element(s) of total governmental funds and 5 percent of the corresponding element(s) of total governmental and enterprise funds combined.
6Which of the following must be reported as a major fund?
- AThe General Fund.
- BA fund having total assets, liabilities, revenues, or expenditures/expenses equaling at least 10 percent of the total governmental or enterprise fund amount for the same element (assets, liabilities, and so forth), as applicable, and at least 5 percent of the combined governmental and enterprise fund total amount for the same element.
- CBoth of the answers.
- DNone of the answers.
7Which of the following is a fiduciary fund?
- AInvestment trust fund.
- BSpecial revenue fund.
- CDebt service fund.
- DEnterprise fund.
8Generally accepted accounting principles applicable to state and local governments require that
- AOnly governmental funds and proprietary funds should be established.
- BOnly those funds required by law, GASB standards, and sound financial administration should be established.
- COnly those funds required by law should be established.
- DAll categories of funds must be established.
9Which of the following funds is a governmental fund-type?
- APrivate-purpose trust fund.
- BInternal service fund.
- CPermanent fund.
- DEnterprise fund.
10Under the modified accrual basis of accounting, revenues should be recognized when
- AEarned.
- BCollected in cash.
- CAuthorized by the budget ordinance.
- DMeasurable and available.
11Which of the following is not an activity category in which general purpose governments typically engage?
- AFiduciary.
- BContractual.
- CBusiness-type.
- DGovernmental.
12All of the following are part of the basic financial statements except:
- AManagement's discussion and analysis.
- BThe government-wide statement of net position.
- CThe statement of revenues, expenditures, and changes in fund balances—governmental funds.
- DAll of the answers are part of the basic financial statements.
13Which of the following is a basic fund financial statement?
- AStatement of revenues, expenditures, and changes in fund balances.
- BStatement of fiduciary net position.
- CStatement of cash flows.
- DAll of the answers are correct statements.
14Which of the following financial statements is required at the government-wide level?
- AStatement of activities.
- BStatement of revenues, expenditures, and changes in fund balances.
- CStatement of cash flows.
- DAll of the listed financial statements are required at the government-wide level.
15GASB's first accounting and reporting principle requires that the accounting system used by a state or local governments must make it possible:
- ATo prepare consolidated modified accrual basis statements for the governmental unit as a whole.
- BTo present fairly and with full disclosure the funds and activities of the governmental unit in conformity with GAAP.
- CTo demonstrate compliance with finance-related legal and contractual provisions.
- DBoth to present fairly and with full disclosure funds and activities, and to demonstrate compliance with legal and contractual provisions.
16A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives, is known as a:
- APublic corporation.
- BFund.
- CActivity.
- DAccounting system.
17Which of the following basic financial statements is most useful in assessing fiscal accountability?
- AStatement of activities.
- BStatement of cash flows—proprietary funds.
- CBalance sheet—governmental funds.
- DStatement of fiscal accountability.
18The basis of accounting under which revenues are recognized when measurable and available is the:
- AModified accrual basis of accounting.
- BAccrual basis of accounting.
- CCash basis of accounting.
- DModified cash basis of accounting.
19Depreciation expense for depreciable general capital assets should be reported on the:
- AStatement of revenues, expenditures, and changes in fund balances.
- BStatement of activities.
- CStatement of general capital assets.
- DAll answers are correct.
20Which of the following fund types focuses on the measurement of current financial resources and flows thereof?
- AGeneral fund.
- BCapital projects fund.
- CPermanent fund.
- DAll of the answers are correct.
21The accrual basis of accounting is used in accounting for financial transactions that affect:
- AGovernmental activities at the government-wide level.
- BProprietary funds.
- CFiduciary funds.
- DAll of the answers are correct.
22General capital assets, such as buildings and equipment, would be recorded in the accounts of:
- AGovernmental activities at the government-wide level.
- BCapital projects funds.
- CPermanent funds.
- DAll of the answers are correct.
23If a capital projects fund borrows $500,000 by issuing a 5-year note payable, how does this transaction affect the accounts of the capital projects fund?
- ACash is increased by $500,000.
- BFund balance is increased by $500,000.
- CLong-term liabilities are increased by $500,000.
- DBoth cash increased by $500,000 and fund balance increase by $500,000.
24Which of the following is not a fiduciary fund type?
- APrivate-purpose trust fund.
- BInvestment trust fund.
- CPermanent fund.
- DPension trust fund.
25Financial reporting for internal service funds differs from that for enterprise funds in which of the following ways?
- AInternal service funds use the accrual basis of accounting.
- BInternal service fund financial information is generally reported in the governmental activities column of the government-wide financial statements.
- CMajor fund reporting is used for internal service funds.
- DBoth major fund reporting used for internal service, and generally reported in governmental activities column of government-wide financial statements.
26The establishment of a fiduciary fund is warranted when:
- AAny trust or agency relationship exists.
- BThe government needs to segregate resources for future construction purposes.
- CA trust or agency relationship exists in which the beneficiary is a private party (individuals, organizations, or other governments).
- DAll of the answers are correct.
27Capital assets, including depreciation on those assets, would appropriately be reported in which of the following funds?
- ACapital projects.
- BEnterprise.
- CPension Trust.
- DBoth Enterprise and Pension Trust.
28Which of the following is always reported in a separate column of a governmental fund financial statement?
- AThe General Fund.
- BSpecial revenue funds.
- CPermanent funds.
- DAll of the answers are correct.
Información
- Descripción
- Chapter 2
- Autor
- turquoise_cat
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- English
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