1)

Baly City uses the consumption method to account for supplies. At the beginning of the year the city had no supplies on hand. During the year the city purchased $600,000 of supplies for use by activities accounted for in the general fund. The city used $400,000 of those supplies during the year. Assuming that the city maintains its books and records in a manner that facilitates the preparation of its fund financial statements, at fiscal year-end the appropriate account balances related to supplies expenditures and supplies inventory would be

		Expenditures $600,000; Supplies inventory $200,000.
		Expenditures $600,000; Supplies inventory $0.
		Expenditures $400,000; Supplies inventory $200,000.
		Expenditures $400,000; Supplies inventory $0.

2)

Of the following types of funds, which one would account for fixed assets like a for-profit organization?

		Enterprise Fund.
		General Fund.
		Internal Service Fund.
		Investment Trust Fund.

3)

Which of the following funds is a fiduciary fund?

		Permanent fund.
		Pension Fund.
		Capital projects fund.
		Debt service fund.

4)

Fund accounting is used by governmental units with resources that must be:

		Composed of cash or cash equivalents.
		b. Incorporated into combined or combining financial statements.
		c. Segregated for the purpose of carrying on specific activities or attaining certain objectives.
		d. Segregated physically according to various objectives.