1. Which group is most likely to be a user of a countys financial statements?

1. Stockholders
2. Internal Revenue Service
3. Citizens
4. Credit market representatives

2. A U.S. company buys inventory from a supplier in Indonesia and pays for the inventory in Indonesian rupiah. The inventory is converted to U.S. dollars on the U.S. companys balance sheet using what $/rupiah exchange rate?

1. The rate when the inventory was paid for
2. The rate at the balance sheet date
3. The rate when the inventory was delivered
4. The rate when the inventory is sold

3.What is the purpose of the fund balance classification system for the general fund?

1. Report on a full accrual basis.
2. Improve evaluation of resource availability.
3. Better measurement of actual costs of providing services.
4. Reduce the tendency to borrow to reduce deficits.

4. On the balance sheet for the general fund, which fund balance category would report prepaid expenses?

1. Nonspendable
2. Restricted
3. Committed
4. Assigned