• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/40

Click to flip

40 Cards in this Set

  • Front
  • Back
1. Which standard issued by the Governmental Accounting Standards Board in 1999 requires two distinct sets of financial statements for state and local governments?
A. GASB Statement No. 32.
B. GASB Statement No. 33.
C. GASB Statement No. 34.
D. GASB Statement No. 35.
E. GASB Statement No. 36.
C. GASB Statement No. 34.
Which group of governmental financial statements reports all revenues and all costs of providing services each year?
A. GAAP-Based Financial Statements.
B. Fund-Based Financial Statements.
C. Cost-Based Financial Statements.
D. Government-Wide Financial Statements.
E. General Fund Financial Statements.
D. Government-Wide Financial Statements.
Proprietary funds are
A. Funds used to account for the activities of a government that are carried out primarily to provide services to citizens.
B. Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations.
C. Funds used to account for monies held by the government in a trustee capacity.
D. Funds used to account for all financial resources except those required to be accounted for in another fund.
E. Funds used to account for revenues that have been legally restricted as to expenditure.
B. Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations.
Fiduciary funds are
A. Funds used to account for the activities of a government that are carried out primarily to provide services to citizens.
B. Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations.
C. Funds used to account for monies held by the government in a trustee capacity.
D. Funds used to account for all financial resources except those required to be accounted for in another fund.
E. Funds used to account for revenues that have been legally restricted as to expenditure.
C. Funds used to account for monies held by the government in a trustee capacity.
5. Governmental funds are
A. Funds used to account for the activities of a government that are carried out primarily to provide services to citizens.
B. Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations.
C. Funds used to account for monies held by the government in a trustee capacity.
D. Funds used to account for all financial resources except those required to be accounted for in another fund.
E. Funds used to account for revenues that have been legally restricted as to expenditure.
A. Funds used to account for the activities of a government that are carried out primarily to
6. Special Revenue funds are
A. Funds used to account for the activities of a government that are carried out primarily to provide services to citizens.
B. Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations.
C. Funds used to account for monies held by the government in a trustee capacity.
D. Funds used to account for all financial resources except those required to be accounted for in another fund.
E. Funds used to account for revenues that have been legally restricted as to expenditure.
E. Funds used to account for revenues that have been legally restricted as to expenditure.
7. The term "current financial resources" refers to
A. Those assets that can quickly be converted into cash.
B. Monetary assets that are available to meet the government's needs.
C. The government's current assets and current liabilities.
D. The current value of all net assets owned by the governmental unit.
E. Financial resources used to provide electricity to local citizens.
B. Monetary assets that are available to meet the government's needs.
8. What are the broad types or classifications of funds for a governmental entity such as a city?
A. General, governmental, and trust funds.
B. Governmental, proprietary, and fiduciary funds.
C. Revenue, trust, and governmental funds.
D. Enterprise, revenue, and fiduciary funds.
E. Governmental, agency, and enterprise funds.
B. Governmental, proprietary, and fiduciary funds.
9. Which group of financial statements is prepared using the "modified accrual accounting" approach?
A. GAAP-Based Financial Statements.
B. Fund-Based Financial Statements.
C. Cost-Based Financial Statements.
D. Government-Wide Financial Statements.
E. General Purpose Financial Statements.
B. Fund-Based Financial Statements.
10. Under modified accrual accounting, revenues should be recognized when they are
A. collected.
B. realizable.
C. reasonably estimable.
D. measurable and available.
E. earned.
D. measurable and available.
11. Under modified accrual accounting, when should an expenditure to recognize interest on long-term debt be recorded?
A. At the end of each accounting period.
B. When payment is due within one fiscal year.
C. When payment is due.
D. When cash is available to pay the interest.
E. When the interest is incurred.
C. When payment is due.
12. Which of the following funds is most likely created with an endowed gift?
A. Enterprise Fund.
B. Internal Service Fund.
C. Debt Service Fund.
D. Capital Projects Fund.
E. Permanent Fund.
E. Permanent Fund.
13. Revenue from property taxes should be recorded in the General Fund
A. when received.
B. when there is an enforceable legal claim.
C. when they are available for recognition.
D. in the period for which they are required or permitted to be used.
E. in the period in which the tax bills are mailed.
D. in the period for which they are required or permitted to be used.
14. Which type of fund is not included in the Government-Wide Financial Statements?
A. Governmental Funds
B. Proprietary Funds
C. Fiduciary Funds
D. Debt Service Funds
E. Special Revenue Funds
C. Fiduciary Funds
15. A city received a grant of $5,000,000 from a private agency. The money was to be used to build a new city library. In which fund should the money be recorded for the Fund-Based Financial Statements?
A. The General Fund.
B. An Expendable Trust Fund.
C. A Capital Projects Fund.
D. An Agency Fund.
E. A Permanent Fund.
C. A Capital Projects Fund.
16. When a city received a federal grant for providing food and other assistance to the homeless, the money should have been recorded in
A. the General Fund.
B. an Expendable Trust Fund.
C. a Capital Projects Fund.
D. an Agency Fund.
E. a Special Revenue Fund.
E. a Special Revenue Fund.
17. Bay City received a federal grant to provide health care services to low income mothers and children. When should the revenues be recognized?
A. As health care services are provided.
B. When the awarding of the grant is announced.
C. When the grant money is received.
D. At the end of Bay City's fiscal year.
E. When the grant money is receivable.
A. As health care services are provided.
18. Trapper City issued 30-year bonds for the purpose of building a new City Hall. The proceeds of the bonds are deposited in the General Fund. For the Fund-Based Financial Statements, in what fund will Bonds Payable appear?
A. General Fund.
B. Capital Projects Fund.
C. Permanent Fund.
D. Debt Service Fund.
E. Bonds Payable do not appear in Fund-Based Financial Statements.
E. Bonds Payable do not appear in Fund-Based Financial Statements.
19. Which of the following is a governmental fund?
A. Enterprise fund.
B. Internal service fund.
C. Permanent fund.
D. Investment trust fund.
E. Agency fund.
C. Permanent fund.
20. Which of the following is a fiduciary fund?
A. Pension trust fund.
B. Debt service fund.
C. Permanent fund.
D. Enterprise fund.
E. Capital projects fund.
A. Pension trust fund.
21. According to GASB Concepts Statement No. 1, what are the three groups of primary users of external state and local governmental financial reports?
A. The Securities Exchange Commission, the citizenry, and legislative and oversight bodies.
B. The Securities Exchange Commission, legislative and oversight bodies, and investors and creditors.
C. The Securities Exchange Commission, the citizenry, and investors and creditors.
D. The citizenry, legislative and oversight bodies, and investors and creditors.
E. The citizenry, management, and the Governmental Accounting Office.
D. The citizenry, legislative and oversight bodies, and investors and creditors.
22. Which of the following statements is true regarding fund-based financial statements?
A. Fund-based financial statements report a government's activities and financial position as a whole.
B. Fund-based financial statements should tell the amount spent this year on such services as public safety, education, health and sanitation, and the construction of a new road.
C. Fund-based financial statements utilize the accrual basis of accounting much like any for-profit entity.
D. Fund-based financial statements help to determine whether the government's overall financial position improved or deteriorated.
E. Fund-based financial statements report all assets and liabilities in a way comparable to business-type accounting.
B. Fund-based financial statements should tell the amount spent this year on such services as public safety, education, health and sanitation, and the construction of a new road.
23. Which of the following statements is false regarding government-wide financial statements?
A. Government-wide financial statements report a government's activities and financial position as a whole.
B. The government-wide financial statement approach helps users make long-term evaluations of the financial decisions and stability of the government.
C. Government-wide financial statements focus on the short-term instead of the long-term.
D. Government-wide financial statements assess the finances of the government in its entirety, including the year's operating results.
E. The measurement focus of government-wide financial statements is on all economic resources and utilizes accrual accounting.
C. Government-wide financial statements focus on the short-term instead of the long-term.
24. How do the balance sheet and statement of revenues, expenditures, and changes in fund balances of governmental funds differ from the financial statement presentation for the governmental activities in the government-wide statement of net assets and statement of activities?
(1) Internal service funds are not included in the fund-based financial statements of governmental funds but could be reported in the governmental activities of government-wide financial statements.
(2) The economic resources measurement basis is used for fund-based financial statements of governmental funds and the current financial resources measurement basis is used for governmental activities in the government-wide financial statements.
(3) Modified accrual accounting is used for fund-based financial statements of governmental funds to time revenues and expenditures and accrual accounting is used for governmental activities of government-wide financial statements.
(4) The financial statements of governmental funds for fund-based financial statements are the same as governmental activities in government-wide financial statements but with different titles of the financial statements.
A. 1 and 2.
B. 2, 3, and 4.
C. 1, 2 and 3.
D. 1 and 3.
E. 1, 2, 3, and 4.
D. 1 and 3.
25. Which of the following is not a classification of nonexchange transactions according to GASB Statement Number 33?
A. Derived tax expenditures.
B. Voluntary nonexchange transactions.
C. Government-mandated nonexchange transactions.
D. Derived tax revenues.
E. Imposed nonexchange revenues.
A. Derived tax expenditures.
26. GASB Statement Number 33 divides all eligibility requirements into four general classifications including all of the following except:
A. Required characteristics of the recipients.
B. Time requirements.
C. Reimbursement.
D. Contingencies.
E. Refunding.
E. Refunding.
27. Which statement is not correct?
A. Governmental funds account for expenditures of financial resources rather than matching revenues and expenses.
B. The Fund Balance Reserved for Encumbrances account is not closed at the end of a fiscal year.
C. Revenues from licenses and permit fees are recognized when received in cash if using the modified accrual basis of accounting for governmental funds.
D. A fund is an independent accounting entity composed of cash and other financial resources, segregated for the purpose of carrying on specific activities and objectives.
E. Commitments for purchase orders are recorded as expenses.
E. Commitments for purchase orders are recorded as expenses.
28. For governmental entities, the accrual basis of accounting is used for:
A. Special revenue funds.
B. Internal service funds.
C. Debt service funds.
D. General Fund.
E. Capital Projects Fund.
B. Internal service funds.
29. What account is debited in the general fund when equipment is received by a governmental entity?
A. Expenditures.
B. Encumbrances.
C. Plant assets.
D. Accounts Payable.
E. Fund Balance-Reserve for Encumbrances.
A. Expenditures.
30. Generally, annual budgets are recorded within the following funds:
A. General fund and special revenue funds.
B. Capital projects funds and debt service fund.
C. Enterprise funds and internal service funds.
D. General Fund and Pension Trust Fund.
E. Agency Funds and General Fund.
A. General fund and special revenue funds.
31. When a city received a federal grant for books to be purchased for a library, the money should have been recorded in
A. the Permanent Fund.
B. an Expendable Trust Fund.
C. a Capital Projects Fund.
D. an Agency Fund.
E. a Special Revenue Fund.
E. a Special Revenue Fund.
32. When a city holds pension monies for city employees, the monies should be recorded in
A. the General Fund.
B. an Expendable Trust Fund.
C. a Fiduciary Fund.
D. an Agency Fund.
E. a Special Revenue Fund.
C. a Fiduciary Fund.
33. When a city received a private donation of $1,000,000 stipulating that the principal donation would be preserved but allowing the interest income to be spent on building a city park with access for disabled children, which fund should the money be recorded in?
A. the General Fund.
B. an Expendable Trust Fund.
C. a Permanent Fund.
D. an Agency Fund.
E. a Special Revenue Fund.
C. a Permanent Fund.
34. When a city collects fees from citizens who use the public swimming pool, the money should be recorded in
A. the General Fund.
B. an Enterprise Fund.
C. a Capital Projects Fund.
D. an Agency Fund.
E. an Internal Service Fund.
B. an Enterprise Fund.
35. A city operates a central data processing facility. The expenses of this facility would be accounted for using
A. the General Fund
B. an Enterprise Fund
C. a Capital Projects Fund
D. an Agency Fund
E. an Internal Service Fund
E. an Internal Service Fund
36. What are the two proprietary fund types?
(1) Internal service funds.
(2) Investment trust funds.
(3) Enterprise funds.
(4) Agency funds.
A. 1 and 2.
B. 2 and 3.
C. 1 and 3.
D. 2 and 4.
E. 1 and 4.
C. 1 and 3.
37. Salaries and wages that have been earned by governmental employees that have not yet been paid are recorded in the general fund as:
A. An expenditure.
B. An encumbrance.
C. An appropriation.
D. An expense.
E. An investment.
A. An expenditure.
38. The reporting of the fund balance of governmental funds will result in a maximum of ___________categories:
A. One
B. Two
C. Three
D. Four
E. Five
E. Five
39. Which classifications may be not used for the Fund Balance of governmental funds?
A. Spendable
B. Nonspendable
C. Assigned
D. Unassigned
E. Restricted
A. Spendable
40. Which of the following statements is true about Fund Balance classifications for the governmental funds?
A. A restriced fund balance is for monies the governing board has appropriated.
B. An assigned fund balance has been designated for a specific purpose and is restricted to use for only that purpose.
C. An unassigned fund balance has no restriction for use of the money and is only applicable to the General Fund.
D. A committed fund balance has been designated by an outside party for a particular use.
E. A nonspendable fund balance is designated only for Permanent Fund balances.
C. An unassigned fund balance has no restriction for use of the money and is only applicable to the General Fund.