9. Which of the following is not considered to be a "derived"tax revenue based on GASB standards? a. sales taxes b. property taxes c. income taxes d. all of the above are derived tax revenues 10. A state provides a city with a grant of $500,000 for a special meals for the homeless" program. The city will receive payment from the state within 30 days of incurring eligible expenditures for homeless people. When should the city recognize revenues under this grant? a when it receives the cash payments from the state b. at the end of the grant, when all expenditures have been incurred c. when it sends bills to the state d. when it incurs expenditures under the grant A state government receives a grant from the federal government that it disburses to local governments within the state. The state government disburses the cash received from the federal government to the local government, but the state government has no other administrative responsibilities regarding the grant. The state government should report the grant in: a. an agency fund b. a special revenue fund c. internal service fund d. the general fund 12. The General Fund lends cash at the beginning of the year to an Enterprise Fund, expecting to be repaid before the end of the year. What account should be debited in the General Fund? a. transfer out to enterprise fund b. due from enterprise fund c. other financing uses .enterprise fund d. expenditures - enterprise fund loans 13. A city paid $40,000 for police cars with the expectation that they would have a useful life of four years. After three years, the city sold the cars for $3,000. How should the city account for the sale in the General Fund? a. debit cash for $3,000, debit accumulated depreciation for $30,000, debit loss on sale of general fixed assets for $7,000, and credit equipment for $40,000. b. debit cash for $3,000 and credit other financing source-sale of capital assets for $3,000. c. debit cash for $3,000, debit loss on sale of general fixed assets for $37,000, and credit equipment for $40,000. d. debit cash for $3,000, debit other financing uses for $37,000, and credit equipment for $40,000 28. The categories of Net Position for a proprietary fund are classified within which of the following categories? A) Committed Net Position, Assigned Net Position and Unassigned Net Position B) Net Investment in Capital Assets, Restricted Net Position and Unrestricted Net Position C) Spendable Net Position and Spendable Net Position D) Restricted Fund balance, Committed Fund balance, Assigned Fund Balance, and Nonspendable Fund Balance 29. GASB requires enterprise funds to be used under which of the following circumstances? A) When the legal requirement exists that the cost of providing services for an activity, including capital costs, be recovered through fees or charges B) When debt is hacked solely by fees and charges C) When a government has a policy to establish fees and charges to cover the cost of providing services for an activity. D) All of the above. 30. Which of the following would be found in an Enterprise Fund Financial Statement? A) Expenditure - Supplies B) Reserve for Encumbrance. C) Appropriations D) Depreciation Expense. 31. How are Fiduciary Funds presented in the Government-wide Financial Statements? A) Combined with Internal Service Funds B) Combined with Business activities. C) Combined with governmental activities D) None of the Above. 32. The terms used for classification of items on the Statement of Changes in Fiduciary! Position are: A) Revenues and Expenses. B) Additions and Deductions. C) Revenues and Expenditures. D) Contributions and Expenses. 33. A fund that is used to account for assets held by a government temporarily acting as a one or more other goverments units or for individuals or private organizations is an A) Agency fund B) Private-Purpose Trust Fund C) Investment Trust Fund D) Pension Trust Fund
