1. Under the current rate method, property, plant and equipment would be translated at what rate? A) Beginning of the year rate B) Average rate C) Current rate D) Historical rate

2. Maxwell and Duncan had been partners for several years, and they decided to admit Quincy to the partnership. The accountant for the partnership believed that the dissolved partnership and the newly formed partnership were two separate entities. What method would the accountant have used for recording the admission of Quincy to the partnership? A) The bonus method B) The equity method C) The goodwill method D) The proportionate method

3. When the hybrid method is used to record the withdrawal of a partner, the partnership A) revalues assets and liabilities but does not record goodwill B) revalues assets and liabilities and records goodwill to the continuing partner but no to the withdrawing partner C) can recognize goodwill but does not revalue assets and liabilities D) revalues liabilities but not assets, and no goodwill is recorded

4. The advantages of the partnership form of business organization, compared to corporations, include which of the following? A) Single taxation B) Ease of raising capital C) Mutual agency D) Limited liability

5. The dissolution of a partnership occurs A) when there is any change in the individuals who make up the partnership B) only when a partner leaves the partnership C) at the end of each year, when income is allocated to the partnership D) only when a new partner is admitted to the partnership

6. Which of the following is not a characteristic of a partnership? A) The partnership itself pays no income taxes B) It is easy to form a partnership C) Any partner can be held personally liable for all debts of the business D) A partnership required written Articles of Partnership

7. Which of the following describes proprietary funds? A) Funds used to account for the activities of a government that are carried out primarily to provide services to citizens B) Funds used to account for a governments ongoing activities that are similar to those operated by for-profit organizations C) Funds used to account for monies held by the government in a trustee or agency capacity D) Funds used to account for all financial resources except those required to be accounted for in another fund

8. Fiduciary funds are A) Funds used to account for the activities of a government that are carried out primarily to provide services to citizens B) Funds used to account for a governments ongoing organizations and activities that are similar to those operated by for-profit organizations C) Funds used to account for monies held by the government in a trustee or agency capacity D) Funds used to account for all financial resources except those required to be accounted for in another fund

9. The term current financial resources refers to A) Those assets that can quickly be converted into cash B) Assets that are available to be used for current expenditures C) The governments current assets and current liabilities D) The current value of all net assets owned by the governmental unit

10. What are the broad classifications of funds for a governmental entity such as a city? A) General, governmental, and trust funds B) Governmental, proprietary, and fiduciary funds C) Revenue, trust, and governmental funds D) Enterprise, revenue, and fiduciary funds