Government & Non-Profit Accounting

Front 1

The purpose of the FASAB is to establish accounting standards for

Back 1

b) Federal government.

Front 2

The Governmental Accounting Standards Board is the primary standard-setting body for:

Back 2

b) All state and local governments.

Front 3

As used by the GASB, interperiod equity refers to which of the following? Financial reporting should:

Back 3

b) Provide information to determine whether current-year revenues were sufficient to payfor current-year services.

Front 4

A primary characteristic that distinguishes governments from businesses is

Back 4

b) The importance of the budget in the governing process.

Front 5

A primary characteristic that distinguishes not-for-profit entities from businesses is

Back 5

b) The importance of the budget in the governing process.

Front 6

A fund is

Back 6

b) A separate fiscal and accounting entity.

Front 7

Which of the following funds is a fiduciary fund?

Back 7

b) Agency fund.

Front 8

Which of the following accounts would you leastexpect to see in a debt service fund?

Back 8

d) Outstanding balance of the debt being serviced.

Front 9

Which of the following funds is a proprietary fund?

Back 9

a) Internal service fund.

Front 10

Which of the following funds is a governmental fund?

Back 10

b) Debt service fund.

Front 11

Which of the following activities conducted by acity-owned junior college should be accounted for in an agency fund?

Back 11

b) Receipt of revenues belonging to the student accounting club.

Front 12

Which of the following sections is NOT required in the comprehensive annual financial report of a city?

Back 12

d) Historical section.

Front 13

Which of the following funds is accounted for onthe modified accrual basis of accounting?

Back 13

a) General fund.

Front 14

Which of thefollowing liabilities would NOT be found in the general fund balance sheet ofthe City of Marmaduke?

Back 14

d) Bonds payable, due in 5 years.

Front 15

The focus of the government-wide statement of activities of the City of West Hills is on which of the following?

Back 15

d) Determining the net cost of functions.

Front 16

The primary focus of the statement of activitiesof a not-for-profit organization is on determining the net increase/decrease in which of the following?

Back 16

d) Net assets of the entity taken as a whole.

Front 17

Under the GASB Statement No. 34 reporting model (as amended by GASB Statement No. 63), the government-wide statement of net position will display which of the following?

Back 17

a) Assets, liabilities, and net position.

Front 18

which fund type would all governments normally include in their fund financial statements?

Back 18

c) General fund

Front 19

Which of the following is NOT included in the financial section of a comprehensive annual financial report?

Back 19

b) Letter of transmittal

Front 20

Wigmore City receives a donation of $10 million from a wealthy citizen who stipulates that the funds be used to acquire and install park benches in the city's Veterans Park. The city should report the donation as an increase in

Back 20

d) Restricted fund balance

Front 21

If an entity elects to focus on all economic resources, then it should adopt a modified accrual basis of accounting.

Back 21

False

Front 22

The budgetary measurement focus of governments is determined by applicable state or local laws.

Back 22

True

Front 23

Governmental activities tend to derive the majority of their revenues from exchange transactions.

Back 23

False

Front 24

In accounting for property taxes, under the modified accrual basis, existing standards provide that, except in unusual circumstances, revenues should be recognized only if cash is expected to be collected within sixty days after year-end.

Back 24

True

Front 25

Income taxes are classified as ad valorem taxes.

Back 25

False

Front 26

Sales taxes are taxpayer assessed, that is, parties other than the beneficiary government determine the tax base.

Back 26

True

Front 27

Revenues that cannot be classified as general revenues are by default considered program revenues.

Back 27

False

Front 28

Taxes that are imposed on the reporting government’s citizens are considered general revenues, even if they are restricted to specific programs.

Back 28

True

Front 29

Current financial resources include cash and receivables but not investments.

Back 29

False

Front 30

Under the modified accrual basis, revenues are “available” if they are collected within the current period or are expected to be collected soon enough after the end of the period to be used to pay liabilities of the current period.

Back 30

True

Front 31

As used in government accounting, expenditures are decreases in

Back 31

b) Net current financial resources.

Front 32

The amount of pension expenditures that a government should recognize in its general fund financial statements during the current year is

Back 32

b) The amount paid plus the amount that will be paid with available expendable financial resources.

Front 33

Other financing sources/uses would appear on which of the following statements?

Back 33

b) Statement of revenues, expenditures, and changes in fund balances.

Front 34

Which of the following is not an accepted modification of the accrual basis concerning the recognition of expenditures in governmental funds?

Back 34

a) Vacations and sick leave should never be accrued.

Front 35

Which of the following activities would be classified as a reciprocal inter fund activity?

Back 35

c) Purchase of supplies by the general fund from an internal service fund

Front 36

Which of the following funds would use the accrual basis of accounting in preparing its fund financial statements?

Back 36

c) City Motor Pool Internal Service Fund.

Front 37

Per GASB standards, governments do not report general capital assets or depreciation in governmental funds.

Back 37

True

Front 38

Proceeds of debt intended to finance general capital assets should be reported in the fund financial statements as a fund liability.

Back 38

False

Front 39

Use of the consumption method of accounting for inventory is not acceptable for the fund financial statements.

Back 39

Fasle

Front 40

Prepaid expenses such as for insurance are classified as deferred outflows, rather than as assets.

Back 40

False

Front 41

Use the following information to answerQuestions 1 & 2. Carl City received $200,000 to help maintain a local art museum that is owned and operated by a not-for-profit organization. During the year the city transferred net earnings of $20,000 to the appropriate entity/fund.

Front 42

The $200,000 gift would be reported in a (an):

Back 42

b) Private-purpose trust fund.

Front 43

The $20,000 transfer would be reported by thefund that made the transfer as a (an)

Back 43

c) Deduction from net position—benefits.

Front 44

Under GASB 68, the government employer is required to report its net pension liability as the:

Back 44

d) Difference between actuarially determined total pension liability and the plan’s net position.

Front 45

A defined contribution pension plan is one in which the employer agrees to do which of the following?

Back 45

a) To make payments to a specified pension plan with no guarantee of a specific pension amount to be paid to the employees.

Front 46

In which of the following funds would the account “netpension obligation” be most likely to appear?

Back 46

b) Enterprise fund.

Front 47

Lomond City receives a federal grant to assist in nutrition programs for its senior citizens. The city will select the contractors that will provide meals and approve the participants in the program. The proceeds of this grant should be accounted for in which of the following funds of the city?

Back 47

a) A governmental fund.

Front 48

Financial assets reported by most investment trust funds of governments should be reported at

Back 48

c) Fair value on the date of the financial statements.

Front 49

GASB standards of accounting for other post-employment benefits (OPEB) require that governments

Back 49

b) Report actuarially determined required contributions as OPEB expense, regardless of whether the government actually makes the contributions.

Front 50

Which of the following activities of agovernment should be accounted for in a fiduciary fund?

Back 50

b) Funds received from an individual who specified that the principal must be kept intact but the income can be used to support families of police officers killed in the line of duty.

Front 51

Permanent funds are classified as

Back 51

a) Governmental funds.