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ACTG 430 - Gov't & NFP

Beschreibung

Quiz am ACTG 430 - Gov't & NFP, erstellt von R W am 08/12/2016.
R W
Quiz von R W, aktualisiert more than 1 year ago
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Zusammenfassung der Ressource

Frage 1

Frage
Which of the following is true regarding the proprietary fund financial statements?
Antworten
  • Statements include the Statement of Net Position, Statement of Revenues, Expenses and Changes in Fund Net Position, and Statement of Cash Flows.
  • Normally, a reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements.
  • The Statement of Net Position reflects equity as contributed equity and retained earnings.
  • The Statement of Cash Flows may be prepared using either the direct or indirect methods.

Frage 2

Frage
Which of the following is *not* considered Required Supplementary Information (RSI)?
Antworten
  • Notes to the financial statements.
  • Budgetary Comparison Schedule.
  • Management's Discussion and Analysis.
  • None of the above; all are considered RSI.

Frage 3

Frage
In addition to the government-wide statements, governments are required to prepare fund financial statements for which of the following category of funds?
Antworten
  • Proprietary funds
  • Governmental type funds
  • Fiduciary funds
  • All of the above

Frage 4

Frage
Which of the following is true with respect to the General Fund?
Antworten
  • The General Fund is considered to be a major fund if the combined total of assets, liabilities, revenues and expenses exceeds 10% of the total of all governmental funds.
  • The General Fund is considered to be a major fund when preparing fund basis financial statements if it bears a financial benefit or burden to the primary government.
  • The General Fund is always considered to be a major fund when preparing fund basis financial statements.
  • The General Fund is not reported as part of the CAFR.

Frage 5

Frage
Under GASB rules for the financial reporting entity:
Antworten
  • component units must be reporting in columns (discrete presentation) separate from the funds of a primary government.
  • counties are component units of the State Government.
  • Blended and discretely presented component units are to be reported in government-wide financial statements but *not* in fund financial statements.
  • Component units are included if the primary government is financially accountable for their operations.

Frage 6

Frage
Which of the following is one of the criteria to determine if a governmental fund is considered to be a major fund?
Antworten
  • Total assets, liabilities, revenues, or expenditures of the individual governmental fund constitutes 10 percent of the governmental funds categories.
  • Total assets, liabilities, revenues, or expenditures/expenses are 5 percent of the total of the governmental and enterprise category. Other funds may be designated major funds at the discretion of management.
  • Both are required.
  • Either will qualify a fund to be a major fund.

Frage 7

Frage
With respect to Government-wide financial statements, which of the following is *not* required by GASB?
Antworten
  • Statement of Cash Flows
  • Statement of Net Position
  • Statement of Activities
  • All of the above are required by GASB Statement 34

Frage 8

Frage
GASB requires which of the following (if applicable) to be included in the notes to the financial statements?
Antworten
  • Outstanding encumberances
  • The definition of cash and cash equivalents used in the statement of cash flows for proprietary funds
  • Interfund receivables and payables.
  • All of the above

Frage 9

Frage
Which Statement is presented during the Accrual Basis of Accounting?
Antworten
  • Governmental Fund Balance Sheet
  • Government-Wide Statement of Activities
  • Statement of Revenues, Expenditure and changes in Fund Balances
  • Governmental Fund Balance Sheet and Statement of Revenues, Expenditure and changes in Fund Balances

Frage 10

Frage
In addition to a Statement of Net Position, Proprietary Fund level financial statements include which of the following?
Antworten
  • Statement of revenues, expenses, and changes in fund Net Position
  • Statement of Cash Flows
  • Both of the above
  • Neither of the above

Frage 11

Frage
The modified accrual basis is a distinct system of accounting that
Antworten
  • differs from accrual accounting only in its failure to recognize long-term assets and liabilities.
  • records expenses and revenues the same as accrual accounting.
  • records expenditures and fund balances.
  • is equivalent to cash accounting

Frage 12

Frage
The general ledger journal entry in the General Fund to record the adoption of a budget would include
Antworten
  • a debit to Estimated Revenues Control.
  • a credit to Estimated Other Financing Sources Control
  • a debit to Budgetary Fund Balance-Reserve for Encumberances.
  • a debit to Appropriations Control.

Frage 13

Frage
Governmental Funds Fund Balance is displayed in which of the following categories?
Antworten
  • Nonspendable, Spendable, Assigned, Unassigned
  • Nonspendable, Restricted, Unrestricted
  • Restricted, Unrestricted, Assigned, Unassigned
  • Nonspendable, Restricted, Committed, Assigned, Unassigned

Frage 14

Frage
According to GASB Statement No. 54 which of the following is an example of a nonspendable fund balance?
Antworten
  • Resources (such as supplies) that are used in operations rather than converted to cash.
  • The corpus of a permanent fund that may not be spent.
  • Prepaid insurance.
  • All of the above are correct.

Frage 15

Frage
According to GASB Statement No. 54 an unassigned fund balance is
Antworten
  • the residual category for the General Fund.
  • the only category of Fund balance that may *not* be reported as a negative number.
  • the designation given for rainy day funds.
  • none of the above.

Frage 16

Frage
Which of the following expenditure classification schemes may be used by governmental funds?
Antworten
  • Activity
  • Character
  • Function
  • All of the above

Frage 17

Frage
All of the following are commonly used major revenue source classes except for
Antworten
  • taxes.
  • intergovernmental revenue.
  • fines and forfeits.
  • transfers from other funds.

Frage 18

Frage
Which of the following items would typically *not* need an encumberance?
Antworten
  • New Building
  • Regular Salaries
  • New Computer
  • Office Equipment

Frage 19

Frage
Revenues of governmental fund types should be recognized when:
Antworten
  • collected in cash.
  • authorized by the budget ordinance.
  • taxes become delinquent.
  • measurable and available.

Frage 20

Frage
A Budgetary Comparison Schedule is
Antworten
  • optional under GASB standards for all funds.
  • required by GASB for internal management reports only; not permitted for external financial reporting.
  • required for all governmental fund types.
  • required for the General Fund, and for special revenue funds, for which an annual budget has been adopted.

Frage 21

Frage
Which of the following is true with respect to Special revenue funds?
Antworten
  • Special revenue funds are used when it is desirable to provide separate reporting of resources that are restricted or committed as to expenditure for purposes other than debt service or capital projects.
  • Special revenue funds are used when it is desirable to provide separate reporting of resources that are designed for specific purposes.
  • Special revenue funds are used when it is desirable to provide separate reporting for funds provided by other govnerments to support capital projects.
  • Special revenue funds are used when it is desirable to provide separate reporting of resources that are designed for specific purposes and when it is desirable to provide separate reporting for funds provided by other governments to support capital projects.

Frage 22

Frage
Which of the following statements is *not* true regarding modified accrual accounting?
Antworten
  • Expenditures and fund liabilities are recorded when goods and services are received.
  • Debt service expenditures for principal and interest are accrued.
  • Expenditures for claims and judgments and landfill post-closure care costs of governmental funds should be recognized to the extent that the liabilities are going to be paid with available resources.
  • Compensated absences and special termination benefits of governmental funds that will not be paid with available resources should be reported as liabilities in the government-wide statements.

Frage 23

Frage
Regarding interfund transactions, which of the following is *not* correct?
Antworten
  • Transaction between funds are not assumed to be arm's length in nature.
  • Interfund transactions must be repaid.
  • Failure to properly report interfund transactions will result in two funds being misstated.
  • Interfund reimbursement is a payment by one fund to a second fund to repay it for a purchase which belongs in the first fund.

Frage 24

Frage
Which of the following is correct with respect to accounting for supplies inventories in a governmental fund?
Antworten
  • Supplies inventories may be recorded using either the purchase method or the consumption method.
  • An amount equal to the ending balance of supplies is reported as Nonspendable Fund Balance.
  • The consumption method is preferable over the purchase method since it requires no adjustment to supplies expense.
  • All of the above are correct.

Frage 25

Frage
Under the modified accrual basis of accounting, GASB standards for property tax revenue recognition provide that revenue should *not* be recognized for property taxes collected:
Antworten
  • more than 90 days after fiscal year end.
  • more than 60 days after fiscal year end.
  • more than 30 days after fiscal year end.
  • after fiscal year end.

Frage 26

Frage
When payrolls and other liabilities are incurred and must be paid before substantial amounts of cash will be collected, what type of short-term note is desirable and secured by a government's power to tax?
Antworten
  • Tax Relief Note Payable
  • Tax Budget Note Payable
  • Tax Anticipation Note Payable
  • Tax Encumbrance Note payable

Frage 27

Frage
Under modified accrual accounting, revenues are recognized when measurable and
Antworten
  • available.
  • collected.
  • earned.
  • expenditures have been made.

Frage 28

Frage
What is the effect on the General Fund's fund balance when capital assets are purchased during a year from General Fund revenues?
Antworten
  • Fund balance is increased.
  • Fund balance is decreased
  • There is no effect, since one asset (cash) is replaced by another (capital asset).
  • None of the above, capital assets must be purchased through a capital projects fund.

Frage 29

Frage
The Expenditures control account in the General Fund is debited when
Antworten
  • supplies are ordered.
  • the budget is recorded.
  • the books are closed at the end of the year.
  • equipment previously ordered is received.

Frage 30

Frage
The General Fund of the City of Bangor purchased water from its Water Utility Fund in the amount of $20,000. The General Fund would debit
Antworten
  • Water Expense.
  • Other Financing Uses-Transfers Out.
  • Water Utility Expenditure.
  • None of the above; no entries would be made.

Frage 31

Frage
What is the correct debit or credit for the following scenario: A contract was issued for the major part of work to be done by a private contractor in the amount of $1,200,000 for a new County courthouse?
Antworten
  • Debit: Budgetary Fund Balance — Reserve for Encumbrances
  • Debit: Construction expenditures
  • Credit: Cash
  • Debit: Encumbrances

Frage 32

Frage
An encumbrance in a capital project fund is created:
Antworten
  • when the project is paid for in full.
  • when the work on the project begins.
  • when the work on the project is finished.
  • when a contract is signed or issued.

Frage 33

Frage
Which of the following statements is *false*?
Antworten
  • The corpus (principal) from a permanent fund should be classified as Nonspendable.
  • Unexpended intergovernmental *grants* and taxes dedicated to capital improvements in a capital projects fund are likely to be classified as Assigned Fund Balance.
  • The residual classification for funds other than the General Fund is Assigned.
  • If a bond sinking fund is required by creditors or law, the unexpended resources would be classified as Restricted.

Frage 34

Frage
With respect to Permanent Funds, which of the following is *not* true?
Antworten
  • The principal is classified as Nonspendable Fund Balance.
  • Permanent Funds are created when resources are provided by private donation.
  • Earnings in excess of expenditures must be added to principal corpus.
  • Permanent Funds use the current financial resources measurement focus.

Frage 35

Frage
Which of the following statements is *false*?
Antworten
  • All of the governmental funds use the modified accrual basis of accounting.
  • Debt service fund are required to report accrued interest payable as current liabilities.
  • General fixed assets that are acquired with governmental fund resources are recorded as expenditures in the governmental funds but are displayed as capital assets in the governmental-wide financial statements.
  • Permanent funds reflect resources that are legally restricted so that principal may not be expended and earnings are used to benefit the government or its citizenry.

Frage 36

Frage
Which of the following is a common source of funding for capital projects?
Antworten
  • Issuance of long term debt.
  • Proceeds of dedicated taxes.
  • Grants from other governments.
  • All of the above are sources of funding for capital projects.

Frage 37

Frage
With respect to Debt Service Funds, which of the following is true?
Antworten
  • Payments under capital lease obligations may be reported in debt service funds.
  • Debt service funds use accrual accounting.
  • Each separate long-term obligation must be accounted for in a separate debt service fund.
  • All of the above are true.

Frage 38

Frage
General fixed assets that are acquired with governmental fund resources are reported as assets in the
Antworten
  • General Fund
  • Capital Projects Fund
  • General Fund or Capital Projects Fund, depending upon which fund provided the resources.
  • None of the above.

Frage 39

Frage
If taxes are levied specifically for payment of interest and principal on long-term debt, those taxes are
Antworten
  • included as a liability of the General Fund.
  • recorded as operating transfers to the debt service fund.
  • included as revenues of the debt service fund.
  • included as a liability of the General Fund and recorded as operating transfers to the debt service fund.

Frage 40

Frage
Siler City receives a trust donation for the purpose of maintaining flower beds in city parks, but the donor does *not* specify that the principal must be maintained. This type of trust would be most appropriately accounted for in a
Antworten
  • Permanent Fund.
  • General Fund.
  • Private Purpose Trust Fund.
  • Special Revenue Fund.

Frage 41

Frage
Which financial statements are required for a proprietary fund?
Antworten
  • Income statement, Statement of Net Position and Statement of Cash Flows
  • Statement of Revenues, Expenses and Changes in Fund Net Position, Statement of Net Position and Statement of Cash Flows
  • Statement of Revenues, Expenses and Changes in Fund Balance and Statement of Net Position, and Statement of Cash Flows.
  • Statement of Revenues, Expenses and Changes in Fund Net Position and Statement of Net Position

Frage 42

Frage
Centralizing purchasing, computer services, and janitorial services are examples of activities that are commonly reported in
Antworten
  • enterprise funds.
  • capital project funds.
  • debt service funds.
  • internal service funds.

Frage 43

Frage
An example of an activity that would *not* normally be accounted for in an enterprise fund would be
Antworten
  • swimming pool.
  • printing services.
  • airport.
  • lottery.

Frage 44

Frage
Internal service funds account for
Antworten
  • activities that produce goods or services to be provided to other governmental units on a cost reimbursement basis.
  • activities that produce goods or services to be provided to outside consumers units on a cost reimbursement basis.
  • Both
  • Neither

Frage 45

Frage
GASB Statement 34 requires enterprise funds to be used under which of the following circumstances?
Antworten
  • When the legal requirement exists that the cost of providing services for an activity, including capital costs, be recovered htrough fees and charges.
  • when debt is backed solely by fees and charges.
  • when a government has a policy to establish fees and charges to cover the cost of providing services for an activity.
  • All of the above.

Frage 46

Frage
Proprietary funds utilize what basis of accounting?
Antworten
  • Modified accrual.
  • Accrual.
  • Cash.
  • Budgetary.

Frage 47

Frage
Which of the following is *false* regarding the cash flow statements of a proprietary fund?
Antworten
  • A reconciliation is required between the Statement of Revenues, Expenses, and Changes in Fund Net Position and the cash flows from operating activities section of the Cash Flow Statement.
  • Interest payments are reported as increases in cash flows from either capital and related financing or noncapital financing activities, whichever is appropriate.
  • Purchases of equipment would be reported in the investing section.
  • None of the above – these are all true.

Frage 48

Frage
Capital assets of internal service funds should be reported
Antworten
  • in the internal service funds only.
  • in the government-wide statements only.
  • in both the internal service funds and the government-wide statements.
  • none of the above, they are not reported.

Frage 49

Frage
GASB requires the [blank_start]indirect[blank_end] method to report cash flows from operating activities in the Statement of Cash Flows.
Antworten
  • indirect
  • direct
  • modified accrual
  • full accrual

Frage 50

Frage
An internal service fund provided services to a General Fund department. At the time of billing, the credit entry in the internal service fund would be:
Antworten
  • Other Financing Sources—Transfers In.
  • Operating Revenues—Charges for Services.
  • Other Financing Sources—Charges for Services.
  • Due from General Fund.

Frage 51

Frage
Which is true regarding the basis of accounting for fiduciary funds?
Antworten
  • All four fiduciary fund types are accounted for using the same basis of accounting and measurement focus as proprietary funds.
  • Agency funds are accounted for using the same basis of accounting and measurement focus as governmental funds, trust funds are accounted for using the same basis of accounting and measurement focus as proprietary funds.
  • Trust funds are accounted for using the same basis of accounting and measurement focus as governmental funds, and agency funds are accounted for using the same basis of accounting and measurement focus as proprietary funds.
  • All four fiduciary fund types are accounted for using the same basis of accounting and measurement focus as governmental funds.

Frage 52

Frage
How are Fiduciary Funds presented in the Government-wide FInancial Statements?
Antworten
  • Combined with Internal Service Funds.
  • Combined with Business activities.
  • Combined with governmental activities.
  • None of the above.

Frage 53

Frage
Which of the following is true regarding fiduciary funds?
Antworten
  • Fiduciary funds are not included in the government-wide financial statements.
  • Fiduciary funds include agency, pension (and other employee benefit) trust, private-purpose trust, and investment trust funds.
  • Both of the above.
  • Neither of the above.

Frage 54

Frage
[blank_start]Agency[blank_end] funds are created when individuals or organizations contribute resources with the agreement that principal and/or income will be used to benefit individuals or private organizations.
Antworten
  • Agency
  • Investment trust
  • Private-purpose trust
  • Permanent

Frage 55

Frage
The terms used for classification of items on the Statement of Changes in Fiduciary Net Position are:
Antworten
  • Revenues and Expenses.
  • Additions and Deductions.
  • Revenues and Expenditures.
  • Contributions and Expenses.

Frage 56

Frage
A fund that is used to account for assets held by a government temporarily acting as agent for one or more other governments units or individuals or private organization is a(n):
Antworten
  • Agency fund
  • Private-Purpose Trust Fund
  • Investment Trust Fund
  • Pension Trust Fund

Frage 57

Frage
A fund that exists when the government is the sponsor of a multigovernment investment pool and accounts for the external portion of the trust assets is a(n):
Antworten
  • agency fund
  • private-purpose trust fund
  • investment trust fund
  • pension trust fund

Frage 58

Frage
Which of the following is true regarding the financial statements of fiduciary funds?
Antworten
  • Fiduciary funds' financial statements include the Statement of Fiduciary Net Position, the Statement of Changes in Fiduciary Net Position, and the Statement of Fiduciary Cash Flows.
  • Fiduciary funds are accounted for using the accrual basis of accounting.
  • Both of the above.
  • Neither of the above.

Frage 59

Frage
In an agency fund, assets are equal to:
Antworten
  • Liabilities + Net Position
  • Net Position
  • Liabilities
  • There are no assets in an Agency Fund.

Frage 60

Frage
What is the correct journal entry for a Tax Agency Fund to record tax levies of other governments certified to it?
Antworten
  • Debit: Taxes Receivable – Current Credit: Revenues Control
  • Debit: Taxes Receivable – Current Credit: Due from Other Governments
  • Debit: Taxes Receivable Credit: Transfer Out
  • Debit: Taxes Receivable for Other Governments Credit: Due to Other Governments

Frage 61

Frage
With respect to the government-wide statement, which of the following statements is correct?
Antworten
  • GASB requires a reconciliation from proprietary fund financial statements to the government-wide statements business-activities columns from modified accrual accounting to accrual accounting.
  • General capital assets should not be reported as assets in governmental funds but should be reported in the governmental activities column of the government-wide Statement of Net Position.
  • In addition to the fund basis statement, GASB Statement 34 requires government-wide statements that are prepared on the modified accrual basis using the economic resources measurement focus.
  • Fiduciary activities are reported in the government-wide statements in a separate column.

Frage 62

Frage
Which of the following funds would *not* be included in the government-wide financial statements?
Antworten
  • Capital Project Fund
  • Private Purpose Trust Fund
  • Enterprise Fund
  • Permanent Fund

Frage 63

Frage
In addition to a Statement of Net Position, which of the following are government-wide statements?
Antworten
  • Statement of Revenues, Expenses, and Changes in Fund Net Position
  • Statement of Cash Flows
  • Both
  • Neither

Frage 64

Frage
Which of the following items are added to government-wide financial statements through worksheet entries?
Antworten
  • General Capital Assets
  • General Long-Term Debt
  • Internal Service Funds servicing governmental departments
  • All of the above

Frage 65

Frage
Which of the following would *not* be an adjustment for long-term debt when preparing government-wide financial statements?
Antworten
  • Changing Other Financing Sources – Proceeds of Bonds to Bonds Payable
  • Changing Expenditures – Bonds Principle to Bonds Payable
  • Recording the cash received from a debt issue
  • Amortizing bond premiums

Frage 66

Frage
A local government purchased a building and recorded the event by debiting Expenditures – Capital Outlay and crediting Cash. What would be the worksheet entry to prepare the government-wide statements?
Antworten
  • Debit to Capital Assets and credit to Expenditures – Capital Outlay
  • Debit to Capital Assets and credit to Cash
  • Debit to Capital Assets and credit to Accumulated Depreciation–Capital Assets and Expenditures – Capital Outlay
  • Debit to Capital Assets for the book value of the asset and credit to Expenditures – Capital Outlay

Frage 67

Frage
Which of the following is true regarding revenue recognition for property taxes, when reporting in the *government-wide* statements?
Antworten
  • Assets are recognized when an enforceable legal claim has arisen or when resources are received, whichever is first.
  • Revenues are recognized when measurable and available; that is, when collected during the current period or no more than 60 days after the end of the current period.
  • Both of the above are true.
  • Neither of the above is true.

Frage 68

Frage
Which of the following is true regarding the government-wide statements?
Antworten
  • Balances from enterprise funds' statements are entered in the business-type activities sections of the government-wide statements without adjustment.
  • Government-wide statements eliminate interfund transactions, within governmental funds.
  • Both of the above.
  • Neither of the above.

Frage 69

Frage
A government reported an *other financing source* in the amount of $900,000 related to the sale of land in its governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. The land had a cost of $400,000. The amount that would be reported in the government-wide Statement of Activities would be
Antworten
  • a gain of $1,300,000.
  • a gain of $900,000.
  • a gain of $500,000.
  • a gain of $400,000.

Frage 70

Frage
A local government purchased a building and recorded the event by debiting Expenditures – Capital Outlay and crediting Cash. What would be the worksheet entry to prepare the government-wide statements in the same year as the purchase?
Antworten
  • Debit to Capital Assets and credit to Expenditures – Capital Outlay
  • Debit to Capital Assets and credit to Cash
  • Debit to Capital Assets and credit to Accumulated Depreciation–Capital Assets and Expenditures – Capital Outlay
  • Debit to Capital Assets for the book value of the asset and credit to Net Position

Frage 71

Frage
Which of the following is an example of a special purpose government?
Antworten
  • Park district
  • Village government
  • Township government
  • City government

Frage 72

Frage
Which of the following statements is true of a special-purpose government?
Antworten
  • Special-purpose governments that are engaged in more than one governmental-type activities can combine the fund and government-wide financial statements.
  • Special-purpose governments that are engaged in a single governmental-type activity may combine the fund and government-wide financial statements.
  • Special-purpose governments engaged in only one business-type activity have to prepare government-wide financial statements.
  • Special-purpose governments must be stand-alone local governments.

Frage 73

Frage
Special-purpose governments that are engaged in both governmental and business-type activities or in more than one governmental activity are required to include all of the following in its financial statements except:
Antworten
  • Required supplementary information
  • Fund basis financial statement
  • Government-wide financial statements
  • None of the above, these are all required

Frage 74

Frage
Assume a government is a special-purpose entity engaged in fiduciary activities only. Which of the following financial statements would be required?
Antworten
  • Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position
  • Statement of Net Position and Statement of Activities
  • Statement of Net Position, Statement of Activities, Statement of Fiduciary Net Position, Statement of Changes in Fiduciary Net Position
  • Statement of Fiduciary Net Position, Statement of Changes in Fiduciary Net Position, and Statement of Cash Flows

Frage 75

Frage
With respect to public colleges engaged in business-type activities, which of the following is *not* correct?
Antworten
  • GASB requirements for business-type activities of public colleges requires accrual account for debt, include accrual of interest and amortization of debt discount and premium.
  • Most public college foundations are required to be reported as discretely presented component units in the college's financial report.
  • Only amounts that are paid by students and third-party payers can be shown as tuition and fee revenue net of any scholarship discounts and allowances.
  • All of the above are correct.

Frage 76

Frage
Which of the following is true with respect to public four-year higher education institutions (public colleges)?
Antworten
  • Revenues sources for public colleges include tuition and fees, state appropriations and donations. All other income is reported as unrelated business income.
  • Many institutions have most of their restricted resources managed by related entities, known as foundations.
  • No public colleges have the power to issue debt; it must be issued by the state as general obligation debt.
  • Public colleges may not choose to report as special-purpose entities engaged only in business-type activities.

Frage 77

Frage
Public colleges and universities may choose to report as
Antworten
  • special-purpose entities engaged in government and business-type entities.
  • special-purpose entities engaged in business-type activities only.
  • Either, depending on the nature of their operations.
  • Neither.

Frage 78

Frage
Which of the following is *not* true regarding the Statement of Revenues, Expenses and Changes in Net Position for a public college reporting as a special purpose entity engaged in business type activities?
Antworten
  • The accrual basis of accounting is used to measure revenues and expenses.
  • Revenues are recorded when measurable and available.
  • Depreiciation expense is recorded.
  • All of the above are true.

Frage 79

Frage
Which of the following is true regarding the Statement of Cash Flows for a public college?
Antworten
  • The direct method must be used.
  • The statement is in the same format required for state and local governmental enterprise funds.
  • Both are true.
  • Neither are true.

Frage 80

Frage
A public college had tuition and fees for the year ended June 30, 2015 in the amount of $45,000,000. Scholarships, for which no services were required, amounted to $4,800,000. Graduate assistantships, for which services were required, amounted to $2,300,000. The amount to be reported by the college for net tuition and fee revenue would be
Antworten
  • $37,900,000
  • $40,200,000
  • $42,700,000
  • $45,000,000

Frage 81

Frage
Identify the standard setting body for private not-for-profit organizations and the basis of accounting that should be used.
Antworten
  • GASB & Accrual
  • GASB & Modified Accrual
  • FASB & Accrual
  • FASB & Modified Accrual

Frage 82

Frage
What are the financial statements required for *all* nongovernmental, not-for-profit organizations?
Antworten
  • Statement of Financial Position, Statement of Activities, Statement of Cash Flows, Statement of Functional Expenses.
  • Statement of Financial Position, Statement of Activities, Statement of Functional Expenses.
  • Statement of Financial Position, Statement of Net Assets, Statement of Functional Expenses.
  • Statement of Financial Position, Statement of Activities, Statement of Cash Flows.

Frage 83

Frage
Which of the following are the net asset classes required by the FASB for private not-for-profit organizations?
Antworten
  • Assigned, Committed, and Unrestricted.
  • Net investment in capital assets, Restricted, and Unrestricted.
  • Partially Restricted, Temporarily Restricted, Unrestricted.
  • None of the above.

Frage 84

Frage
Which of the following is *not* true regarding accounting and financial reporting for nongovernmental, not-for-profit organizations?
Antworten
  • Expenses are classified as unrestricted or temporarily restricted.
  • Expenses must be reported by function, either in the Statement of Activities or in the Notes.
  • Net assets are classified according to donor-imposed restrictions.
  • All of the above are true.

Frage 85

Frage
Contributed services are recognized as revenue for a private not-for-profit when the service:
Antworten
  • is related to administration and fund raising activities.
  • requires specialized skills, is provided by someone possessing those skills, and typically would be purchased if not provided by donation.
  • Both are required for the service to be recorded as revenue.
  • None of the above, contributed services are not recorded as revenue.

Frage 86

Frage
A donor gave artwork to a nongovernmental, not-for-profit museum. The artwork qualified as a "collection", under FASB rules. The not-for-profit could
Antworten
  • record the artwork at its fair market value at the time of receipt as an increase in permanently restricted net assets.
  • not record the artwork, but provide information about the artwork in the notes.
  • do either of the above, depending upon the policy of the not-for-profit
  • record the artwork as both a contribution and an expense.

Frage 87

Frage
A donor made a gift of cash to a private not-for-profit organization in 2015 with an expressed purpose restriction. All the funds were expended in 2015. The organization must
Antworten
  • record the gift as a temporarily restricted revenue, reclassify the funds to unrestricted, and then report the expense as unrestricted.
  • record the gift and expense as unrestricted.
  • record the gift and expense as temporarily restricted.
  • record the gift as a temporarily restricted revenue, reclassify the funds to unrestricted, and then report the expense as unrestricted or record the gift and expense as temporarily restricted.

Frage 88

Frage
Which of the following is *not* true of a Statement of Activities prepared for a private not-for-profit organization?
Antworten
  • Expenses are shown only as decreases in unrestricted net assets.
  • Reclassifications for expiration of time restrictions are shown in the revenues and support section.
  • Unrealized gains (losses) on investments are shown only as increases (decreases) in unrestricted net assets.
  • Expenses are classified by function within the categories of Program Services and Supporting Services either in the Statement or the notes.

Frage 89

Frage
A donor made a cash contribution of $90,000 to a private not-for-profit organization for the purpose of acquiring a building. The not-for-profit organization properly recorded the gift of cash as temporarily restricted revenue. When the building is acquired, the organization should
Antworten
  • record the building as permanently restricted.
  • record the building as tempoarily restricted.
  • record the building as either unrestricted or temporarily restricted, as long as a consistent policy is followed.
  • Show an expense equivalent to the amount paid for the building in unrestricted net assets and reclassify the same amount from temporarily restricted to unrestricted net assets.

Frage 90

Frage
In 2015, a major drug company agreed to give a not-for-profit private college $300,000 to perform testing of a new drug. An advance payment of $200,000 was received in 2015. The college was to receive $1,500 per individual test. In 2015, the college completed 100 tests. How much revenue should the college report for 2015?
Antworten
  • $300,000
  • $200,000
  • $150,000
  • $100,000

Frage 91

Frage
What organization oversees the promulgation of Government Auditing Standards?
Antworten
  • Government Accountability Office
  • Governmental Accounting Standards Board
  • Public Companies Accounting Oversight Board
  • Government Accounting Oversight Committee

Frage 92

Frage
The Single Audit Act intends that auditors conducting regular financial audits of state and local governments and not-for-profits organizations provide assurance to the federal government that
Antworten
  • federal funds have been expended in accordance with laws and regulations.
  • federal funds are protected through a system of internal controls and sound financial management practices.
  • Both of the above.
  • Neither of the above.

Frage 93

Frage
Which of the following is *not* a type of governmental audit?
Antworten
  • Attestation engagements
  • Consulting engagements
  • Financial audits
  • Performance audits

Frage 94

Frage
The use of opinion units allows the auditor to
Antworten
  • provide different opinions on different components of the reporting entity.
  • only allow one opinion for entire entity not its components.
  • plan the audit better and increase the effectiveness of substantive procedures.
  • eliminate the need for Test of Controls

Frage 95

Frage
Which of the following is a government audit type that has a primary concern with providing reasonable assurance about whether financial statements are presented fairly?
Antworten
  • Attestation Engagement
  • Performance Audit
  • Nonaudit services
  • Financial Audit

Frage 96

Frage
Which of the following is true regarding the Single Audit Act and its amendments?
Antworten
  • An auditor is expected to express an opinion on "major programs," which are chosen based on size.
  • An auditor is required to select all "Type A" programs as major programs.
  • Both of the above.
  • Neither of the above.

Frage 97

Frage
Under the terms of the Single Audit Act and its amendments, what percentage of federal awards expenditures must be selected for audit?
Antworten
  • 50%; or 0% if organization is deemed to be Low Risk Audittee.
  • 50%; or 25% if organization is deemed to be Low-Risk Auditee.
  • 100%; or 25% if organization is deemed to be Low-Risk Auditee.
  • 100%; or 50% if organization is deemed to be Low-Risk Auditee.

Frage 98

Frage
What type of audit opinion is appropriate if an auditor is not deemed to be independent?
Antworten
  • Adverse.
  • Disclaimer of opinion.
  • Qualified.
  • Unqualified.

Frage 99

Frage
Which of the following would *not* be an opinion unit of a general purpose government?
Antworten
  • Governmental activities
  • Business-type activities
  • Each Major Fund
  • All of the above are opinion units

Frage 100

Frage
What is the maximum threshold for a tax-exempt organization to file a form 990-EZ?
Antworten
  • A charity with gross receipts of < $25,000.
  • A charity with gross receipts of < $50,000
  • A charity with gross receipts of < $500,000
  • A charity with gross receipts of < $500,000 and total assets of < $2.5 million

Frage 101

Frage
Basis of accounting determines which of the following?
Antworten
  • When transactions and events are recognized.
  • What transactions and events will be reported.
  • Where transactions and events will be reported.
  • Why transactions and events will be reported.

Frage 102

Frage
A city receives a donation from a citizen who specifies that the principal must be invested and the earnings must be used to support operations of a city-owned recreational facility. The principal of this gift should be accounted for in which of the following funds?
Antworten
  • Trust fund
  • Special revenue fund
  • Permanent fund
  • Internal service fund

Frage 103

Frage
Which of the following is *NOT* a governmental fund?
Antworten
  • City hall debt service fund
  • City utilities enterprise fund
  • Gasoline tax special revenue fund
  • City hall capital projects fund

Frage 104

Frage
Which of the following accounts would you *least* expect to see in a debt service fund?
Antworten
  • Principal payments
  • Interest charges
  • Interest earned
  • Outstanding balance of the debt being serviced

Frage 105

Frage
Which of the following funds is a proprietary fund?
Antworten
  • Internal service fund
  • Special revenue fund
  • Capital projects fund
  • Permanent fund

Frage 106

Frage
Which of the following funds is a governmental fund?
Antworten
  • Enterprise fund
  • Debt service fund
  • Internal service fund
  • Agency fund

Frage 107

Frage
The state collects a gasoline tax that must be used to support highway construction and maintenance. The gasoline tax revenue should be accounted for in which of the following funds?
Antworten
  • General fund
  • Special revenue fund
  • Debt service fund
  • Internal service fund

Frage 108

Frage
Riverside Golf Course is a city-owned golf course that collects greens fees in amounts sufficient to cover its expenses. Riverside Golf Course should be accounted for in which of the following funds?
Antworten
  • Internal service fund
  • Enterprise fund
  • General fund
  • Special revenue fund

Frage 109

Frage
Which of the following funds is accounted for on the modified accrual basis of accounting?
Antworten
  • General fund
  • Internal service fund
  • Proprietary fund
  • Pension trust fund

Frage 110

Frage
Which of the following liabilities would *NOT* be found in the general fund balance sheet of the City of Marmaduke?
Antworten
  • Accounts payable
  • Due to special revenue fund
  • Deferred revenue
  • Bonds payable, due in 5 years

Frage 111

Frage
Why would a government be more likely than a not-for-profit organization to integrate its budget into its accounting system?
Antworten
  • Because the amount of expenditures is likely to be greater.
  • Because the penalties for exceeding budgeted expenditures are more severe
  • Because governments have more sophisticated accounting systems than not-for-profit organizations
  • Governments are NOT more likely than not-for-profits to formally integrate their budget into their accounting system.

Frage 112

Frage
As used in defining the modified accrual basis of accounting, the term "available" means
Antworten
  • receive in cash.
  • will be received in cash within 60 days after year-end.
  • collection in cash is reasonably assured.
  • collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period.

Frage 113

Frage
Under the full accrual basis of accounting, property tax revenues are recognized
Antworten
  • when they are received in cash.
  • in the year for which they were levied.
  • in the year for which they were levied and when collection in cash is reasonably assured.
  • collected within the current period or expected to be collected soon enough thereafter to bused to pay liabilities of the current period.

Frage 114

Frage
Under the modified accrual basis of accounting, the amount of property tax revenues that should be recognized by a government in the current year related to the current-year levy will be
Antworten
  • the total amount of the levy.
  • the expected collectible portion of the levy.
  • the portion of the levy collected.
  • the portion of the levy collected in the current year or within sixty days after the end of the fiscal period.

Frage 115

Frage
A city that has a 12/31 fiscal year end has adopted a policy of recognizing the maximum amount of property tax revenue allowable under GAAP. Property taxes of $720,000 (of which 10% are estimated to be uncollectible) are levied in October 2013 to finance the activities of the fiscal year 2014. During 2014, cash collections related to property taxes levied in October 2013 were $600,000. IN 2015 the following amounts related to the property taxes levied in October 2013 were collected: January, $30,000; March, $6,000. For the fiscal year ended 12/31/14, what amount should be recognized as the property tax revenues related to the 2013 levy on the governmental fund financial statements?
Antworten
  • $720,000
  • $648,000
  • $630,000
  • $600,000

Frage 116

Frage
Expenditures are generally recorded and fund liabilities are recognized
Antworten
  • when goods and services are received, but only if resources are available in the fund.
  • when invoices are paid.
  • when purchase orders are issued, regardless of whether or not resources are available in the fund.
  • when goods and services are received, regardless of whether or not resources are available in the fund.

Frage 117

Frage
For purposes of recognizing property tax revenues in governmental funds, "available" is defined as
Antworten
  • revenues received within 90 days after year-end.
  • revenues received within 60 days after year-end.
  • revenues received within 120 days after year-end.
  • being up to the judgment of the preparer.

Frage 118

Frage
Which of the following are not characterized as non-exchange revenues?
Antworten
  • Sales taxes
  • Property taxes
  • Fines and forfeitures
  • Charges for services

Frage 119

Frage
Which of the following funds would use the modified accrual basis of accounting in preparing its fund financial statements?
Antworten
  • City Electric Utility Enterprise Fund
  • City Hall Capital Projects Fund
  • City Motor Pool Internal Service Fund
  • City Employee Pension Trust Fund

Frage 120

Frage
Assume that the City of Juneau maintains its books and records to facilitate the preparation of its fund financial statements. The city pays its employees bi-weekly on Friday. The fiscal year ended on Wednesday, June 30. Employees had bene paid on Friday, June 25. The employees paid from the general fund had earned $90,000 on Monday, Tuesday, and Wednesday (June 28, 29, and 30). What entry, if any, should be made in the city's general fund on June 30?
Antworten
  • Debit Expenditures $90,000; credit Wages and salaries payable $90,000
  • Debit Expenses $90,000; credit Wages and salaries payable $90,000
  • Debit Expenditures $90,000; credit Encumbrances $90,000
  • No entry is required

Frage 121

Frage
Assume that the City of Juneau maintains its books and records to facilitate the preparation of its government-wide financial statements. The city pays its employees bi-weekly on Friday. The fiscal year ended on Wednesday, June 30. Employees had been paid on Friday, June 25. The employees paid from the general fund had earned $90,000 on Monday, Tuesday, and Wednesday (June 28, 29, and 30). They will earn $60,000 on Thursday and Friday (July 1 and 2). What entry, if any, should be made on June 30?
Antworten
  • Debit Expenditures $90,000; credit Wages and salaries payable $90,000
  • Debit Expenditures $150,000; credit Wages and salaries payable $150,000
  • Debit Expenses $90,000; credit Wages and salaries payable $90,000
  • No entry is required

Frage 122

Frage
On July 1, Gilbert County bought computer equipment for use in the administrative offices of the county. The equipment has an estimated useful life of three years and salvage of $10,000. The county has a 6/30 fiscal year-end. Assuming that the county maintains its books and records in a manner that facilitates the preparation of fund financial statements, the $85,000 cost of this equipment would require which of the following entries?
Antworten
  • Debit Expenditures $85,000; Credit Cash $85,000
  • Debit Equipment $85,000; Credit Cash $85,000
  • Debit Expenses $85,000; Credit Cash $85,000
  • No entry in the city's governmental funds

Frage 123

Frage
On July 1, Gilbert County bought computer equipment for use in the administrative offices of the county. The equipment has an estimated useful life of three years and salvage of $10,000. The county has a 6/30 fiscal year-end. Assuming that the county maintains its books and records in a manner that facilitates the preparation of *government-wide* financial statements, the $85,000 cost of this equipment would require which of the following entries?
Antworten
  • Debit Expenditures $85,000; Credit Cash $85,000
  • Debit Equipment $85,000; Credit Cash $85,000
  • Debit Expenses $85,000; Credit Cash $85,000
  • No entry is required
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