(Multiple choice-theory)

1. In fund financial statements, for which of the following funds are financial statements prepared using the current financial resources measurement focus and the modified accrual basis of accounting?

a. Both Enterprise Funds and Special Revenue Funds

b. Both the General Fund and Debt Service Funds

c. Both Capital Projects Funds and Pension Trust Funds

d. Both Permanent Funds and Private Purpose Trust Funds 2. In fund financial statements, for which of the following funds are you most likely to see the category Long-term bonds payable?

a. General Fund

b. Capital Projects Fund

c. Enterprise Fund

d. Debt Service Fund 3. Which basis of accounting is used in preparing the budgetary comparison statement?

a. The budgetary basis

b. The accrual basis

c. The modified accrual basis

d. The cash receipts and disbursements basis 4. In fund financial statements, where are the revenues and expenditures (expenses) of governmental-type and proprietary-type funds reported?

a. On different financial statements

b. On the same financial statement

c. Not on any financial statement

d. On the same financial statement where fiduciary funds are reported 5. For which fund categories are fund financial statements required to have columns?

a. Major funds only

b. All funds

c. Each major fund plus a column for nonmajor funds combined

d. Only the combined total of all funds 6. Which of the following best expresses the accounting equation for Agency Funds?

a. Assets $=$ Liabilities

b. Assets $=$ Liabilities + Net Assets

c. Assets - Liabilities $=$ Net Assets

d. Assets $=$ Net Assets 7. Which of the following is part of the minimum requirements established by the GASB for general-purpose external financial reports?

a. An introductory section

b. Management's Discussion and Analysis

c. A statistical section

d. A schedule of cash receipts and disbursements for all funds 8. The process of blending is accomplished by reporting a component unit's funds in which manner?

a. In the notes to the primary government's financial statements

b. In a separate column to the left of the primary government's funds

c. As if they were always fiduciary funds of the primary government

d. As if they were the funds of the primary government 9. Which of the following situations would be defined as a special item?

a. The amount of a revenue or an expenditure item increased by at least 10 percent over the previous year

b. A significant transaction within the control of management is either unusual in nature or infrequent in occurrence

c. A significant event outside the control of management causes the expenses or expenditures of a fund to exceed its revenues

d. A vibrant economy causes an entity's tax revenues to rise by an extraordinary amount over the budgetary estimate 10. When preparing a fund statement of revenue, expenditures, and changes in fund balances for the Capital Projects Fund, how should proceeds of debt be reported?

a. As a revenue

b. As a transfer

c. As an other financing source

d. As bonds payable 11. In fund financial statements, where are the categories Capital assets, less accumulated depreciation, and Long-term bonds payable likely to appear?

a. The General Fund, but not an Enterprise Fund

b. An Enterprise Fund, but not a Capital Projects Fund

c. Both an Enterprise Fund and a Capital Projects Fund

d. An Enterprise Fund and Capital Projects Fund or a Debt Service Fund