Multiple Choice Questions 1. Personal income tax revenue a. 6 only b. 2 only c. 4 only

Question:

Multiple Choice Questions
1. Personal income tax revenue
a. 6 only
b. 2 only
c. 4 only
d. 2 and 4
2. Accrued postemployment benefit liability, governmental fund employees
a. I and 3
b. 1 only
c. 3 only
d. 5 only
3. Bonds payable, enterprise funds
a. I and 3
b. 5 only
c. 1 only
d. 1 and 5
4. Depreciation expense on general fund assets
a. 2 and 4
b. 2 only
c. 2, 4 and 6
d. 4 only
5. Following is information for a county (numbers are in millions):
Total governmental fund balances ...................................................... $138
Bonds payable-governmental funds ................................................... 690
Accrued other postemployment benefit liabilities-governmental funds ......... 130
Capital assets-governmental funds ................................................... 790
Accrued other liabilities-governmental funds ...................................... 128
Other long-term assets-governmental funds ........................................ 48

The net position of governmental activities is (in millions)
a. $ 28
b. $ 248
c. $1,568
d. $ 172
6. The following information is available concerning the financial activities of the State of New York for fiscal 2010 (all amounts are in millions):
Net change in fund balances-governmental funds .................................... $123
Depreciation expense on general capital assets ....................................... 300
Net losses on disposal of capital assets of governmental funds .................... 14
Revenues of governmental funds that do not provide current financial resources... 80
Repayments of principal on general long-term debt .............................. 5,020
Proceeds from disposal of capital assets of governmental funds ............... 306
Proceeds from issuance of general long-term debt ................................ 7,287
Expenses of governmental funds, other than depreciation,
not requiring current financial resources ............................................ 1,871
Capital outlays-governmental funds ............................................... 1,637
The fiscal 2010 change in net position -governmental activities is (in millions)
a. $(8,588)
b. $(2,918)
c. $ 2,228
d. $3,164
7. A county uses the legal budgetary basis to report encumbrances. Information for its latest fiscal year is as follows:
Encumbrances outstanding at the beginning of the year ..................... $ 50,000
Encumbrances outstanding at the end of the year ............................ 75,000
Excess of revenues and otrjer financing sources over expenditures and other financing uses, legal budgetary basis ....................................................... 860,000
What is the excess of revenues and other financing sources over expenditures and other financing uses, using the budgetary basis?
a. $810,000
b. $835,000
c. $885,000
d. $935,000
8. A county's 2013 operating statement for governmental funds reports transportation expenditures of $19,000,000. The government-wide statement of activities reports transportation expenses of $55,000,000. Which one of the following items would not explain why the government-wide statement reports a higher number than the governmental funds statement?
a. The $19,000,000 does not include depreciation on transportation-related equipment.
b. The $55,000,000 includes accrued pension costs earned this year by transportation-related employees.
c. The $19,000,000 does not include expenses not paid in cash this year.
d. The $55,000,000 includes temporary loans made by the transportation-related funds.
9. A governmental fund reports derivative investments that qualify for hedge accounting. How are unrealized gains and losses on these investments reported in the government-wide financial statements?
a. They are not reported.
b. They appear on the governmental funds as part of fund balance-nonspendable.
c. Unrealized gains appear on the statement of net position as deferred liabilities and unrealized losses appear as deferred assets.
d. Unrealized gains appear on the statement of net position as deferred assets and unrealized losses appear as deferred liabilities.

10. A county's general fund bought equipment for $50,000. The equipment was estimated to have a 10-year life, LO 5 straight-line, no . Four years later, it sold the equipment for $18,000. In the year of the sale, the government-wide statement of activities will report
a. Loss on sale of capital assets of $12,000
b. Proceeds from sale of capital assets of $18,000
c. Loss on sale of capital assets of $32,000
d. Proceeds from sale of capital assets of $32,000
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