Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 . What is the primary reason that governmental entities use fund accounting? a . Fund accounting is required by law. b . Fund accounting

1. What is the primary reason that governmental entities use fund accounting?
a. Fund accounting is required by law.
b. Fund accounting is required by GAAP.
c. Fund accounting promotes control and accountability over restricted resources.
d. Fund accounting promotes better control over operating activities.
2. Basis of accounting determines which of the following?
a. When transactions and events are recognized.
b. What transactions and events will be reported.
c. Where transactions and events will be reported.
d. Why transactions and events will be reported.
3. A fund is
i. A separate legal entity.
ii. A separate fiscal and accounting entity.
a. I only
b. II only
c. I and II
d. Neither I nor II
4. What type of fund is an investment trust fund?
a. General fund.
b. Proprietary fund.
c. Fiduciary fund.
d. Service fund.
5. When a governmental entity adopts a basis of accounting other than full accrual and a measurement focus that excludes long-lived assets and liabilities in its governmental fund types:
a. It is in violation of the law.
b. It is in violation of GAAP.
c. It has reported in accordance with GAAP for governmental fund financial statements.
d. It can better measure the results of operations.
6. 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?
a. Trust fund.
b. Special revenue fund.
c. Permanent fund.
d. Internal service fund.
7. Which of the following is NOT a governmental fund?
a. City hall debt service fund.
b. City utilities enterprise fund.
c. Gasoline tax special revenue fund.
d. City hall capital projects fund.
8. Which of the following accounts would you least expect to see in a debt service fund?
a. Principal payments.
b. Interest charges.
c. Interest earned.
d. Outstanding balance of the debt being serviced.
9. Which of the following funds is a proprietary fund?
i. Internal service fund.
ii. Enterprise fund.
iii. Capital projects fund.
a. I and II
b. II and III
c. I and III
d. None of the above
10. Which of the following funds is a governmental fund?
a. Enterprise fund.
b. Debt service fund.
c. Internal service fund.
d. Custodial fund.
11. Deferred inflow of resources is
a. Money that will be collected 5 years from now
b. Money that is in a fiduciary fund until donor restrictions lapse
c. Money collected in the current period that are applicable to the future periods
d. Present obligations that the government has little or no discretion to avoid.
12. Which of the following transactions should the City of Highland account for in a trust fund?
a. General fund contributions received by the city pension plan.
b. Greens fees received from golfers at the city-owned golf course.
c. Grants received from the Federal government to purchase buses to be used for public transit.
d. Proceeds of bonds issued to construct a new city hall building.
13. 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?
a. General fund.
b. Special revenue fund.
c. Debt service fund.
d. Internal service fund.
14. The City of San Jose built a new city hall and financed construction by issuing bonds due in installments over the next 30 years. The proceeds will be accounted for in which of the following funds?
a. General fund.
b. Internal service fund.
c. Capital projects fund.
d. Debt service fund.
15. Prepaid insurance is classified as
a. Committed
b. Restricted
c. Assigned
d. Non-spendable
16. To fulfill the printing needs of its various departments and agencies, the City has established a Central Print Shop, which bills the various departments and agencies of the city for printing services rendered. The Central Print Shop should be accounted for in which of the following funds.
a. Internal service fund.
b. Enterprise fund.
c. General fund.
d. Special revenue fund.
17. Which of the following sections is NOT required in the comprehensive annual financial report of a city?
a. Financial section.
b. Introductory section.
c. Statistical section.
d. Historical section.
18. The basic financial statements of a city do NOT include which of the following?
a. Government-wide statement of net position.
b. Government-wide statement of activities.
c. Government-wide statement of cash flows.
d. Separate balance sheets for governmental and proprietary funds.
19. Which of the following funds is accounted for on the modified accrual basis of accounting?
a. General fund.
b. Internal service fund.
c. Proprietary fund.
d. Pension trust fund.
20. Which of the following assets would NOT be found in the general fund balance sheet of the City of Harrison?
a. C

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Costing And Management

Authors: Riad Izhar, Janet Hontoir

2nd Edition

9780198328230

More Books

Students also viewed these Accounting questions