Choose the best answer

1. The City of Old town purchased a vehicle for the police department. If the operations of the police department are financed by general revenues, the purchase would be recorded in which funds and/or activities?

a) General Fund: Yes; Governmental Activities: No

b) General Fund: No; Governmental Activities: No

c) General Fund: Yes; Governmental Activities: Yes

d) General Fund: No, Governmental Activities: Yes

2. The expenditure classification "Current Expenditures" is an example of which of the following types of classifications?

a) Activity.

b) Object.

c) Function.

d) Character.

3. Under GASBS 34, financial information related to fiduciary activities is reported in which financial statements?

Government-wide Financial Statements

Fund Financial Statements

a) No

Yes

b) Yes

Yes

c) No

No

d) Yes

No

4. An investment trust funds is type of:

a) Governmental funds.

b) Fiduciary funds.

c) Proprietary funds.

d) A +b.

5. An example of a proprietary fund is a (an)

a) Special revenue fund.

b) Investment trust fund.

c) Internal service fund.

d) Debt service fund.

6. Goods for which a purchase order had been placed at an estimated cost of $1,000 were received at an actual cost of $985. The journal entry in the General Fund to record the receipt of the goods will include a:

a) Debit to Reserve for Encumbrances for $1,000.

b) Debit to Expenditures for $985.

c) Credit to Vouchers Payable for $985.

d) All of the above are correct.

7. Expenditures and other financing Uses when closed. It will:

a) Decrease fund balance.

b) Increase fund balance.

c) It will not affect.

d) All of them.

8. Under the modified accrual basis of accounting:

a) Estimated revenue is register as debt in budgetary accounts, and will register as a revenue (credit) in operating statement account.

b) Estimated revenue is register as credit in budgetary accounts, and will register as a revenue (credit) in operating statement account.

c) Estimated revenue is register as debt in budgetary accounts, and will register as a revenue (debt) in operating statement account.

d) None of them

9. A machine is sold for $500. It had originally been purchased for $8,000 using GF revenues. It is fully depreciated. Gain on sale of equipment account should be recorded in the General fund journal as:

a) Debit in 500$.

b) Credit in 500$.

c) Credit in 7500$.

d) Gain on sale of equipment account will not recorded in general fund journal.

10. One characteristic that distinguishes other financing sources from revenues is that other financing sources:

a) Increase fund balance when they are closed at year-end.

b) Arise from debt issuances or interfund transfers in.

c) Have a normal credit balance.

d) All of them.

11. Under GASB reporting entity standards, a component unit is

a) Organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete.

b) A legally separate organization that is financially independent of a primary government and on which the primary government cannot impose its will.

c) A large department of a primary government.

d) Both A and B are component units.

12. Which of the following is always subject to GASB jurisdiction?

a) A hospital.

b) A college or university.

c) A public school district.

d) All of the above.

13. Capital assets used by departments accounted for by the General Fund of a governmental unit should be accounted for in

e) The General Fund.

f) The governmental activities journal.

g) The business-type activities journal.

h) The general capital assets fund.

14. Which of the following best describes the recommended format for the government-wide statement of activities?

a) Revenues minus expenses equals change in net assets.

b) Revenues minus expenditures equals change in net assets.

c) Program revenues minus expenses minus general revenues equal changes in net assets.

d) Expenses minus program revenues minus general revenues equal change in net assets.