6) The purchase of a capitalizable asset such as a fire engine is recorded as:

a. An expense in the Government-Wide Financial Statements and as a Capital Asset in the Fund Financial Statements.

b. A Capital Asset in the Government-Wide Financial Statements and as an expenditure in the Fund Financial Statements.

c. An expense in the Government-Wide Financial Statements and an expenditure in the Fund Financial Statements.

d. As a Capital Asset in both the Government-Wide and Fund Financial Statements.

7) Proceeds received from the issuance of general long term debt for the purpose of financing capital assets should be recorded:

a. In the debt service fund as long term debt payable.

b. In the debt service fund as revenue.

c. In the capital projects fund.

d. In the proprietary fund as long-term debt payable.

8) All of the following would be posted into 1 of the 3 Program Revenue Categories, on the Government-Wide Statement of Activities, EXCEPT:

a. Charges for services.

b. A "COPS" grant received to help pay for police salaries.

c. Municipal Court fines (i.e. parking tickets).

d. Property Taxes collected.

9) The adopted budget requires the municipality to raise $50,000,000 in taxes to support its operations. 96% of taxes are expected to be collected. The amount of tax revenue is:

a. $ 2,083,333

b. $ 2,000,000

c. $ 50,000,000

d. $ 52,083,333

10) Which of the following is TRUE about the recording of a municpal budget?

a. Per GASB, Fund Balance is always credited since fund balance can only be used to support the budget.

b. Per GASB, Fund Balance is always debited since fund balance can only be used to support the budget.

c. Anticipated Revenues are recorded as credits to assist in preventing the overexpenditure of budget lines.

d. Appropriations are recorded as credits to assist in preventing the overexpenditure of budget lines.

11) Expenditures are:

a. Cash outlays and obligations regardless of consumption or usage during a period.

b. Consumption and allocation of usage or decrease in asset value regardless of cash outlays.

c. Just another another term for expense. The two terms are interchangeable.

d. Recorded in all funds.

12)Recognizing revenues when measurable and available for paying current obligations and expenditures when obligated to pay describes which basis of accounting?

a. Accrual aka "Full Accrual" Accounting

b. Modified Accrual Accounting.

c. Budgetary Basis Accounting.

d. Cash Basis Accounting.

13)A non-governmental not-for-profit should record special events:

a. only if the purpose, audience and call to action criteria are met.

b. only if they are unusual or infrequent but within management's control.

c. in the revenue/gains/support section allocated proportionately between revenue (for the portion for which the donor received something in return) and support (for the remaining amount).

d. in the revenue/gains/support section offset by direct costs

14) Which of the following is an example of a special district?

a. Primary Government

b. Component Unit

c. Board of Education

d. Municipality

15) Which is NOT TRUE about estimated uncollectible taxes?

a. They are a reduction to the amount levied because the town anticipates not collecting that amount.

b. When initially recording the levy, they increase the receivable.

c. When initially recording the levy, they leave the revenue unchanged.

d. They are included in the levy in an amount above the tax revenues needed to allow for the full collection of what is needed to support the buget despite less than a 100% collection rate.

16) Which of the following statements is true about services donated to a non-governmental not-for-profit?

a. Volunteer services should always be recorded as revenues based on the best estimate of fair value.

b. Donated services are too difficult to quantify and therefore they are never recorded as contributions.

c. Donated services increase the not-for-profit's net assets.

d. Donated services should be recorded as contributions if they increase a non-financial asset.

17) Which statement is true about enterprise funds?

a. They provide goods or services to the general public and charge user fees to support their operations.

b. They are only established by approval of the governing body.

c. They provide goods or services to the general public and levy taxes to support their operations. d.

They provide goods or services solely to departments within the entity and levy taxes to support their operations.

18) Which of these fiduciary fund types has no fund equity?

a. Investment Trust Fund.

b. Private Purpose Trust Fund.

c. Pension Trust Fund.

d. Agency Fund.

19)Contributions from outside sources, in which the earnings can only be used while the principal remains on the books to create future earnings to support the purpose of the contribution is recorded in:

a. Either the Permanent Fund or the Speical Revenue Fund, depending on whether the purpose of the contributions benefits the governmental unit (or its citizens) or benefits a private party.

b. Either the Permanent Fund or the Private-Purpose Trust Fund, depending on whether the purpose of the contributions benefits the governmental unit (or its citizens) or benefits a private party.

c. The Agency Fund.

d. The Permanent Fund.

20)Which of the following lists properly includes all the appropriate sections of a Proprietary Fund Statement of Cash Flows?

a. Operating Activities, Capital and Related Financing Activities, Noncapital Financing Activities, Nonoperating and Investing Activities.

b. Operating Activities, Nonoperating Activities, Financing Activities, Investing Activities.

c. Operating Activities, Nonoperating Activities, Investing Activities.

d. Operating Activities, Capital and Related Financing Activities, Noncapital Financing Activities, Investing Activities.

21)Fund Accounting applies to which of the following?

a. Fiduciary Funds

b. Internal Financial Reporting of Non-Governmental Not-for-Profits

c. External Financial Reporting of Non-Governmental Not-for-Profits

d. Both A and B.

22) All of the following are ways around the "unrelated business income" rule EXCEPT:

a. Merchandise sold was entirely donated.

b. Income from "business" activity is limited to $10,000.

c. "Business" activity not conducted on a regular basis.

d. "Business" activity is staffed 100% by volunteers.

23) This opinion is the opinion desired by all entities being audited and is often referred to as a "clean" opinion.

a. Qualified

b. Modified

c. Disclaimer

d. Unmodified

24)If a Not-for-Profit meets the single audit threshold, which of the following must the auditor follow when performing the audit?

a. GAAS

b. GAGAS

c. OMB Circular A-133

d. All of the above.

25) The term debt limit refers to:

a. The maximim size of any single bond (or note) issue a governmental entity can issue at any one time.

b. The maximim total amount of debt a governmental unit can have outstanding and/or authorized but not issued.

c. The governmental unit's borrowing power remaining after deducting all outstanding and/or authorized but not issued debt from the debt allowable (per regulatory/statutory calculation for the entity's jurisdiction).

d. The sum of all the governmental entity's overlapping debt.