1.County activities involving economic assistance, health and safety, education, and legislative services are categorized as:

a.Governmental activities

b.Business activities

c.Fiduciary activities

d.Proprietary activities

2.A government's financial statements report on the activities of

a.The primary government.

b.The primary government and blended component units.

c.The primary government and discretely presented component units.

d.The primary government and all component units.

3.A discretely presented component unit of a county is most likely to:

a.Require primary government approval for major decisions.

b.Exist to provide services to the primary government.

c.Issue bonds for which the component unit is financially obligated.

d.Have the same governing body as the primary government.

4.Which of the following would most likely be reported as a blended component unit of a county government?

a.The sewer district is responsible for sewage treatment services provided to several surrounding local governments, including the county.The county appoints a minority of the sewer district's board members.The district sets service rates and makes all decisions regarding its operations.Its operations are funded by property tax levies and user charges, and by debt for which it is legally liable.

b.The county library was established by the county and is a separate legal entity receiving an annual budgetary contribution from the county.Library board members are appointed by the county, and bonds and notes for library capital costs are county debt.

c.The county medical center is a separate legal corporation.Its bonds are guaranteed by the county.

d.The building authority is a separate legal entity whose board is appointed by the county.The county is legally liable for bonds issued by the building authority, which are used to finance county construction projects.

5.Accumulation of money to be used to pay the interest on general obligation bonds is reported in a:

a.Special revenue fund.

b.Custodial fund.

c.Permanent fund.

d.Debt service fund.

6.Fiduciary funds of a state or local government include all of the following except:

a.Private purpose trust funds.

b.Custodial funds.

c.Permanent funds.

d.Investment trust funds.

7.Collections of property taxes are reported in a county's:

a.Special revenue fund.

b.General fund.

c.Investment trust fund.

d.Custodial fund.

8.Resources from federal grants required to be spent on specific activities are reported in which fund balance category of a county's general fund balance sheet?

a.Assigned

b.Committed

c.Restricted

d.Nonspendable

9..The general fund collects taxes that are legally restricted for use in a future year.The amount of the collections is reported on the general fund's:

a.Operating statement as an other financing source.

b.Balance sheet as a liability.

c.Operating statement as revenues.

d.Balance sheet as a deferred inflow.