ACCY161 Final

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emach532
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252761
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ACCY161 Final
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2013-12-14 03:19:43
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ACCY161 Lundblad
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ACCY161 Final (2007/2008)
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  1. Which of the following is NOT a characteristic of a fund as defined by GASB standards?
    A. An accounting entity
    B. A fiscal entity
    C. A self-balancing set of accounts
    D. A segregated quantity of cash and other financial resources on deposit with a designated trustee
    D. A segregated quantity of cash and other financial resources on deposit with a designated trustee
    (this multiple choice question has been scrambled)
  2. The GASB has identified which of the following as the "cornerstone" of all financial reporting in government?
    A. Understandability
    B. Both accountability and visibility
    C. Accountability
    D. Visibility
    E. Representational faithfulness
    C. Accountability
    (this multiple choice question has been scrambled)
  3. The types of funds that may be used in governmental accounting are classified into the categories of activities performed by governments:
    A. None are correct
    B. Governmental, proprietary, and fiduciary
    C. Governmental activities, business-type activities
    D. Governmental, business-type, and fiduciary
    B. Governmental, proprietary, and fiduciary
    (this multiple choice question has been scrambled)
  4. The government-wide financial statements are intended to report on ___________ :
    A. Both financial resources and operational accountability
    B. Financial resources
    C. Fiscal accountability
    D. Operational accountability
    E. Both fiscal and operational accountability
    A. Both financial resources and operational accountability
    (this multiple choice question has been scrambled)
  5. The dual track includes:
    A. Both the fund track and the government-wide track
    B. The government-wide track
    C. The fund, modified accrual, and government-wide tracks are all correct terminology
    D. The fund track
    E. The modified accrual track
    A. Both the fund track and the government-wide track
    (this multiple choice question has been scrambled)
  6. An example of other financing sources would be:
    A. Sales of tax anticipation notes
    B. Grants for capital improvements
    C. Proceeds of the sale of bonds
    D. All are correct
    E. Both grants and bond sales
    C. Proceeds of the sale of bonds
    (this multiple choice question has been scrambled)
  7. In governmental financial reporting the internal service fund is included in:
    A. Both government and business-type activities
    B. Governmental activities
    C. None are correct - it is reported separately
    D. Governmental funds
    E. Business-type activities
    A. Both government and business-type activities
    (this multiple choice question has been scrambled)
  8. The measurement focus of economic resources is related to:
    A. Fiduciary funds financial statements
    B. All are correct
    C. Business-type activities financial statements
    D. Both governmental and business-type activities financial statements
    E. Governmental activities financial statements
    D. Both governmental and business-type activities financial statements
    (this multiple choice question has been scrambled)
  9. When equipment that is to be used by an activity accounted for by the General Fund of a government is received, it should be recorded in the General Fund as a(an):
    A. Expenditure
    B. Appropriation
    C. Capital asset
    D. Encumbrance
    A. Expenditure
    (this multiple choice question has been scrambled)
  10. In governmental financial reporting, the fiduciary funds are included in the:
    A. Governmental activities statements
    B. Fund financial statements
    C. Both statements
    B. Fund financial statements
    (this multiple choice question has been scrambled)
  11. The financial results of blended components are included in:
    A. The governmental fund statements
    B. They are included in both statements but disclosed differently
    C. The government-wide statements
    B. They are included in both statements but disclosed differently
    (this multiple choice question has been scrambled)
  12. The section of the comprehensive annual financial report (CAFR) that presents tables and charts showing social and economic data in addition to financial trends and the fiscal capacity f the government is the:
    A. Financial section
    B. Introductory section 
    C. Statistical section
    D. Management discussion and analysis (MD&A) section
    D. Management discussion and analysis (MD&A) section
    (this multiple choice question has been scrambled)
  13. ___________ refers to the concept that current-year revenues are sufficient to pay for services provided that year, so that future taxpayers will to be required to assume the burden for services previously provided:
    A. Budgetary control
    B. All are correct
    C. Interperoid equity
    D. Responsibility accounting
    C. Interperiod equity
    (this multiple choice question has been scrambled)
  14. Recognizing revenues when measurable and available for paying current obligations and expenditures when incurred describes which basis of accounting?
    A. Accrual
    B. Fund
    C. Modified cash
    D. Modified accrual
    E. Budgetary 
    D. Modified accrual
    (this multiple choice question has been scrambled)
  15. Estimated revenues has a:
    a. Credit balance
    b. Debit balance
    a. Debit balance
  16. When a vehicle is ordered by a government, the purchase order should be recorded in the General Fund as a debit to:
    A. Equipment
    B. Appropriations
    C. Expenditures
    D. Encumbrances
    D. Encumbrances
    (this multiple choice question has been scrambled)
  17. In accounting for state and local governments the modified accrual basis is recommended for:
    A. Proprietary and fiduciary funds
    B. Governmental funds only
    C. Proprietary funds only
    D. All funds
    B. Governmental funds only
    (this multiple choice question has been scrambled)
  18. When the budget of a government is adopted and Estimated Revenues exceed Appropriations, the excess is:
    A. Credited to Reserve for Encumbrances
    B. Credited to Fund Balance
    C. None of these
    D. Debited to Fund Balance
    E. Debited to Reserve for Encumbrances
    B. Credited to Fund Balance
    (this multiple choice question has been scrambled)
  19. Which of the following steps in the acquisition of goods and services by an activity accounted for by the General Fund occurs first?
    A. Encumbrance
    B. Disbursement
    C. Expenditure
    D. Appropriation
    D. Appropriation
    (this multiple choice question has been scrambled)
  20. An example of a proprietary fund is a(an):
    A. Both investment trust and internal service funds
    B. Investment trust fund
    C. Debt service fund
    D. Special revenue fund
    E. Internal service fund
    E. Internal service fund
    (this multiple choice question has been scrambled)
  21. When the budget of a government is recorded and Appropriations exceeds Estimated Revenues, the Fund Balance account is:
    A. Credited at the beginning of the year and no entry is made at the end of the year
    B. Credited at the beginning of the year and debited at the end of the year
    C. Debited at the beginning of the year dn credited at the end of the year
    D. Debited at the beginning of the year and no entry is made at the end of the year
    C. Debited at the beginning of the year and credited at the end of the year
    (this multiple choice question has been scrambled)
  22. The expenditures control account of a government is debited when:
    A. The budget is recorded
    B. Supplies are ordered
    C. The invoice is paid
    D. Supplies previously encumbered are received
    E. None of these
    D. Supplies previously encumbered are received
    (this multiple choice question has been scrambled)
  23. The General Fund has transferred cash to the appropriate fund for eventual retirement of term bonds maturing in 10 years. Which funds would record this transaction?
    A. General Fund: Yes; Capital Project Fund: No; Debt Service Fund: No
    B. General Fund: Yes; Capital Projects Fund: Yes; Debt Service Fund: Yes
    C. General Fund: Yes; Capital Projects Fund: No; Debt Service Fund: Yes
    D. General Fund: No; Capital Projects Fund: No; Debt Service Fund: Yes
    C. General Fund: Yes; Capital Projects Fund: No; Debt Service Fund: Yes
    (this multiple choice question has been scrambled)
  24. When supplies ordered for use in activity accounted for in the General Fund of a government are received at an actual price that is more than the estimated price on the purchase order, the Encumbrance account is:
    A. Credited for the estimated price on the purchase order
    B. Debited for the actual price for the supplies received
    C. Debited for the estimated price on the purchase order
    e. None of these
    A. Credited for the estimated price on the purchase order
    (this multiple choice question has been scrambled)
  25. The measurement focus that should be used in preparing fund financial statements is:
    A. Gov: current; Prop: economic; Fid: economic
    B. Gov: current; Prop: economic; Fid: current
    C. Gov: current; Prop: current; Fid: economic
    D. Gov: economic; Prop: current; Fid: current
    A. Gov: current; Prop: economic; Fid: economic
    (this multiple choice question has been scrambled)
  26. The basis of accounting that should be used in preparing fund financial statements is:
    A. Gov: modified; Prop: accrual; Fid: accrual
    B. Gov: accrual; Prop: modified; Fid: accrual
    C. Gov: modified; Prop: modified; Fid: modified
    D. Gov: modified; Prop: accrual; Fid: modified
    A. Gov: modified; Prop: accrual; Fid: accrual
    (this multiple choice question has been scrambled)
  27. The City of Orange just passed its annual budget and it was approved by the mayor. It included estimated property taxes of $5,000; sales and use taxes of $7,000; investment income of $1,000; the sales of bonds for a new police station of $3,000. Appropriations for
    the year were estimated to be $15,000. The budgetary entry for Estimated Revenue would be:
    A. $13,000
    B. $12,000
    C. $8,000
    D. $16,000
    E. None of these
    A. $13,000
    (this multiple choice question has been scrambled)
  28. The City of Orange just passed its annual budget and it was approved by the mayor. It included estimated property taxes of $5,000; sales and use taxes of $7,000; investment income of $1,000; the sales of bonds for a new police station of $3,000. Appropriations for
    the year were estimated to be $15,000. Payroll payments are made for $500, this will result in:
    A. A debit to Encumbrances
    B. A debit to Expenditures
    C. Both a debit to Encumbrances and Expenditures
    D. A debit to Appropriations
    E. All of these are correct
    B. A debit to Expenditures
    (this multiple choice question has been scrambled)
  29. The City of Orange just passed its annual budget and it was approved by the mayor. It included estimated property taxes of $5,000; sales and use taxes of $7,000; investment income of $1,000; the sales of bonds for a new police station of $3,000. Appropriations for the year were estimated to be $15,000. Sales tax of $2,000 is collected. There is:
    A. A credit to Estimated Revenues
    B. A debit to Estimated Revenues
    C. None of these are correct
    D. A debit to Fund Balance
    E. A credit to Accounts Receivable
    C. None of these are correct
    (this multiple choice question has been scrambled)
  30. The City of Orange just passed its annual budget and it was approved by the mayor. It included estimated property taxes of $5,000; sales and use taxes of $7,000; investment income of $1,000; the sales of bonds for a new police station of $3,000. Appropriations for
    the year were estimated to be $15,000. When the bonds are sold there is an entry for:
    A. Bonds payable
    B. Both Bonds Payable and Other Financing Sources
    C. All of these are correct
    D. Appropriations
    E. Other financing sources
    B. Both Bonds Payable and Other Financing Sources
    (this multiple choice question has been scrambled)
  31. The responsibility of governments to justify that their actions in the current period have complied with public decisions concerning the raising and spending of public monies in the short-term is known as:
    A. Fiduciary responsibility
    B. Operational accountability
    C. Legal accountability
    D. Fiscal accountability
    D. Fiscal accountability
    (this multiple choice question has been scrambled)
  32. Interest expenditures on bonds payable should be recorded:
    A. When bonds are issued
    B. At the end of the fiscal period if the interest due date does not coincide with the end of the fiscal period:
    C. When legally payable
    D. When paid
    C. When legally payable
    (this multiple choice question has been scrambled)
  33. General capital assets used by departments accounted for by the General Fund of a governmental unit should be capitalized in:
    A. The business-type activities journal
    B. The general capital assets fund
    C. The General Fund
    D. The governmental activities journal
    D. The governmental activities journal
    (this multiple choice question has been scrambled)
  34. Which of the following funds is a governmental fund-type?
    A. Internal service fund
    B. Permanent fund
    C. Enterprise fund
    D. Private-purpose trust fund
    B. Permanent fund
    (this multiple choice question has been scrambled)
  35. In accounting for state and local governments the modified accrual basis is recommended for:
    A. Al funds
    B. Proprietary and fiduciary funds
    C. Governmental funds only
    D. Proprietary funds only
    B. Proprietary and fiduciary funds
    (this multiple choice question has been scrambled)
  36. The modified accrual basis of accounting applicable to governmental fund types requires that revenues be recognized when:
    A. Collected in cash
    B. Both earned and measurable and available
    C. Measurable and available
    D. Authorized by the budget ordinance
    E. Earned
    C. Measurable and available
    (this multiple choice question has been scrambled)
  37. The correct term for the liabilities in a governmental fund statement would be:
    A. Current liabilities
    B. Legal liabilities
    C. Fund liabilities
    D. All are correct
    C. Fund liabilities
    (this multiple choice question has been scrambled)
  38. The accounting system used by a state or local government must make it possible:
    A. To prepare financial statements as required by FASB
    B. To present fairly the financial position and results of financial operations of the government as a whole, as well as fund financial activity in conformity with GAAP, and to demonstrate compliance with finance-related legal and contractual provisions
    C. To prepare consolidated accrual basis statements for the government as a whole
    D. All are correct
    B. To present fairly the financial position and results of financial operations of the government as a whole, as well as fund financial activity in conformity with GAAP, and to demonstrate compliance with finance-related legal and contractual provisions
    (this multiple choice question has been scrambled)
  39. On what should the government-wide financial statements report?
    A. The cost of government services
    B. Operational accountability
    C. Net assets and results of financial operations of the government as a whole
    D. All of these are correct
    D. All of these are correct
    (this multiple choice question has been scrambled)
  40. The fund financial statements for governmental funds should include a:
    A. Balance sheet for governmental funds
    B. A schedule of fixed assets by class
    C. statement of cash flows
    D. Statements of revenues, expenses, and changes in fund net assets
    A. Balance sheet for governmental funds
    (this multiple choice question has been scrambled)
  41. Government-wide financial statements present the government's financial position using:
    a Total financial resources measurement focus/accrual basis of accounting
    b. Economic resources measurement focus/accrual basis of accounting
    c. Current financial resources measurement focus/modified actual basis of accounting
    d. Current financial resources measurement focus/cash basis of accounting
    b. Economic resources measurement focus/accrual basis of accounting
  42. Which of the following are reported in the functions/programs section of the statement of activities at the government-wide level where they reduce the net expense of each function or program to produce a net revenue?
    A. Indirect revenues
    B. Program revenues
    C. None of these
    D. General revenues
    B. Program revenues
    (this multiple choice question has been scrambled)
  43. Accountability for capital assets used by departments accounted for by the governmental funds of a government should be established in:
    A. The governmental activities accounts at the government-wide level
    B. The property, plant, and equipment fund
    C. The appropriate governmental funds
    D. Departmental memorandum records
    A. The governmental activities accounts at the government-wide level
    (this multiple choice question has been scrambled)
  44. Which of the following funds of a government uses the modified accrual basis of accounting?
    A. Private-purpose trust fund
    B. Internal service
    C. Capital projects
    D. Enterprise
    C. Capital projects
    (this multiple choice question has been scrambled)
  45. Which of the following is NOT true for capital projects funds?
    A. Capital projects funds may account for financial resources provided by federal grants as well as for bond proceeds
    B. Encumbrance accounting is generally used
    C. Cash or receivables from special assessments to finance construction projects should be recorded as assets of capital projects funds
    D. GASB standards require that construction work in progress be capitalized in the capital projects funds until the project is completed
    D. GASB standards require that construction work in progress be capitalized in the capital projects funds until the project is completed
    (this multiple choice question has been scrambled)
  46. The liability for general obligation bonds should be recorded in:
    A. General Fund
    B. Debt service fund
    C. Governmental activities journal
    D. Capital projects fund
    C. Governmental activities journal
    (this multiple choice question has been scrambled)
  47. Proceeds from general obligation bonds should be recorded in the:
    A. Debt service fund
    B. General obligation bond fund
    C. Capital projects fund
    D. Permanent fund
    C. Capital projects fund
    (this multiple choice question has been scrambled)
  48. Debt service funds are used to account for which of the following:
    A. Payment of principal and interest on general long-term debt
    B. Payent of interest only on general long-term debt
    C. Payment of principal only on general long-term debt
    D. Payment of principal and interest on all debt of the government, including that of enterprise funds
    A. Payment of principal and interest on general long-term debt
    (this multiple choice question has been scrambled)
  49. Which of the following funds of a government would account for depreciation?
    A. Internal service
    B. Capital projects
    C. Special revenue
    D. General
    A. Internal service
    (this multiple choice question has been scrambled)
  50. Under utility regulatory accounting principles (RAP), the account "Utility Plant Acquisition Adjustment" reflects:
    A. The difference between the amount paid for utility plans and the amount originally paid by the utility that first placed the plant into public service, less accumulated depreciation
    B. The difference between the amount paid for the utility plant less the fair market value of its tangible plant assets
    C. The difference between the amount paid for the utility plant less its current replacement cost
    D. The difference between the fair market value of the utility plant and the amount paid for it, less accumulated depreciation
    A. The difference between the amount paid for utility plant and the amount originally paid by the utility that first placed the plant into public service, less accumulated depreciation
    (this multiple choice question has been scrambled)
  51. For which of the following assets can the "modified approach" be elected in lieu of depreciation?
    A. All capital assets
    B. Buildings and equipment
    C. Eligible infrastructure assets
    D. Al general capital assets
    C. Eligible infrastructure assets
    (this multiple choice question has been scrambled)
  52. The GASB reporting model requires, among other characteristics, that the accounting system:
    A. Only show compliance and provide budgetary accounting
    B. Provide an ability to show compliance with finance-related laws and regulations
    C. Provide budgetary accounting
    D. Be on the fund basis
    E. Be on a fund basis, show compliance, and provide budgetary accounting
    E. Be on a fund basis, show compliance, and provide budgetary accounting
    (this multiple choice question has been scrambled)
  53. Estimated revenues are found in:
    A. Neither Governmental Fund Accounting nor Government-Wide Accounting
    B. Governmental Fund Accounting. Just the governmental funds, do not consider the proprietary or fiduciary funds
    C. Government-Wide Accounting
    D. Both Governmental Fund Accounting and Government-Wide Accounting
    B. Governmental Fund Accounting. Just the governmental funds, do not consider the proprietary or fiduciary funds
    (this multiple choice question has been scrambled)
  54. Program revenues:
    A. Are used to calculate net expenses
    B. All of these characterize program revenue
    C. Are usually in the form of a tax
    D. Can be from exchange or non-exchange transactions
    A. Are used to calculate net expenses
    (this multiple choice question has been scrambled)
  55. Which of the following terms indicate or relate to the idea of the primary government and all related units:
    A. Modified accrual basis 
    B. Governmental activities
    C. Blended presentation
    D. Component unit
    E. Accrual basis
    F. Reporting entity
    G. Fund equity
    H. Discrete presentation
    F. Reporting entity
    (this multiple choice question has been scrambled)
  56. One of the characteristics government-wide financial statements reporting includes:
    A. Net assets and results of financial operations of the government as a whole
    B. Financial resources focus
    C. Both net assets and fiscal accountability
    D. Budgetary compliance
    E. Fiscal accountability
    A. Net assets and results of financial operations of the government as a whole
    (this multiple choice question has been scrambled)
  57. As discussed in the text, the use of budgetary accounts and budgetary accounting is supported by:
    A. GASB standards
    B. Federal laws if a state expects to get grants
    C. Common practice in the public sector 
    D. State laws
    A. GASB standards
    (this multiple choice question has been scrambled)
  58. The following occurred for the City of Salem for the fiscal year ending June 30, 2011: the budget included estimated revenues of $600 and appropriations of $500. Purchase orders of $400 were issued. $200 worth of the items on the purchase orders were received with related invoices of $210. The invoices were approved and paid. What is the balance in the available appropriations at this point?
    A. $120
    B. $300
    C. $110
    D. $80 
    E. $90
    E. $90
    (this multiple choice question has been scrambled)
  59. When supplies ordered for use in an activity accounted for in the General Fund are received at an actual price that is more than the estimated price on the purchase order, the Encumbrance account is:
    A. Debited for the estimated price on the purchase order
    B. Credited for the estimated price on the purchase order
    C. Debited for the actual price for the supplies received
    D. Credited for the actual price for the supplies received
    B. Credited for the estimated price on the purchase order
    (this multiple choice question has been scrambled)
  60. The payments made for fixed assets is found in which of the following:
    A. Governmental Fund Accounting
    B. Government-Wide Accounting 
    C. Just the governmental funds, do not consider the proprietary or fiduciary funds
    D. Neither Governmental Fund Accounting nor Government-Wide Accounting
    E. Both Governmental Fund Accounting and Government-Wide Accounting
    E. Both Governmental Fund Accounting and Government-Wide Accounting
    (this multiple choice question has been scrambled)
  61. A debt service fund is a:
    A. Governmental fund
    B. Nonexpendable fund
    C. Fiduciary fund
    D. Proprietary fund
    A. Governmental fund
    (this multiple choice question has been scrambled)
  62. The following occurred for the City of Salem for the fiscal year ending June 30, 2011: the budget included estimated revenues of $600 and appropriations of $500. Purchase orders of $400 were issued. $200 worth of the items on the purchase orders were received with related invoices of $190. The invoices were approved and paid. What is the balance in the encumbrances account at this point?
    A. $220
    B. $100
    C. $300 
    D. $90
    E. $200
    E. $200
    (this multiple choice question has been scrambled)
  63. Which of the following is a true statement regarding in-substance defeasance of bonds?
    A. The government must pledge to transfer amounts to an escrow agent prior to the due date for each interest and principal payment for the debt being defeased
    B. The government must place cash or other assets in an irrevocable trust sufficient to pay all future interest and principal payments for the debt being defeased
    C. The government must agree to maintain sufficient cash and investment balances in its debt service fund to cover all interest and principal payments for the debt being defeased
    D. The government must agree to maintain sufficient unrestricted cash and investments in its governmental funds to cover all interest and principal payments for the debt being defeased
    B. The government must place cash or other assets in an irrevocable trust sufficient to pay all future interest and principal payments for the debt being defeased
    (this multiple choice question has been scrambled)
  64. For the following transactions or events in the capital projects fund, what would be the correct accounting treatment from the options provided: Purchase orders for $700,000 were issued for park amenities which are to be funded by the sales of bonds:
    A. A credit to bonds payable
    B. A debit to fixed assets 
    C. All of these are correct
    D. A debit to encumbrances
    D. A debit to encumbrances
    (this multiple choice question has been scrambled)
  65. A local civic organization gave the city government $15,000 cash to be used to pay the utility bills of persons whose incomes were below the poverty level. The city should account for the $15,000 gift in:
    A. Private-purpose trust fund
    B. An investment trust fund
    C. The General Fund
    D. A permanent fund
    A. Private-purpose trust fund
    (this multiple choice question has been scrambled)
  66. The year-end financial statements for a governmental entity could  include balances in the following accounts:
    A. Encumbrances
    B. Fund balance and Reserve for encumbrances
    C. Fund balance
    D. Budgetary fund balance
    E. Reserve for encumbrances
    B. Fund balance and Reserve for encumbrances
    (this multiple choice question has been scrambled)
  67. Transactions for internal service fund can be found in:
    A. Both the fund financial statements and the government-wide financial statements
    B. The government-wide financial statements
    C. The fund financial statements
    C. The fund financial statements
    (this multiple choice question has been scrambled)
  68. When securites with a cost of $5000 are transferred from the debt service fund to an investment pool fund and the market value of the securities is $6000 the following occur:
    A. #2 - there is a credit to the investment pool for the $5000
    B. #5 - reveune is recongnized only on the debt service fund
    C. #1 - there is a debit to the debt service fund for $5000
    D. #6 - #'s 1, 2, and 4 are all correct
    E. #4 - revenue is recongnized on both the debt service fund and the investment pool fund
    F. #3 - both #1 and #2 are correct
    B. #5 - revenue is recognized only on the debt service fund
    (this multiple choice question has been scrambled)
  69. Jefferson County developed a community park from land abandoned by the federal government. The county uses both a capital projects fund and a debt service fund in developing the park. The county issued a contract to develop the park for $700,000.  The following accounting entry(ies) will result.  Select all that are correct so you may have more than one answer:
    a. An encumbrance entry in the general fund 
    b. An encumbrance entry in the capital project fund
    b. A credit entry in the debt service fund for the liability for the contract
    c. A debit to construction-in-progress
    d. A debit to cash in the capital projects fund for $700,000
    b. An encumbrance entry in the capital project fund
  70. Which of the following is NOT true regarding proprietary funds?
    A. The difference between assets and liabilities of proprietary funds is called "fund balance"
    B. Proprietary funds record capital assets directly in the fund accounts
    C. Proprietary funds present a statement of cash flows
    D. Proprietary funds record long-term debt directly in the fund accounts
    A. The difference between assets and liabilities of proprietary funds is called "fund balance"
    (this multiple choice question has been scrambled)
  71. How should financial information for internal service funds be reported in the government-wide financial statements?
    A. Usually as part of governmental activities, unless the internal service fund predominantly serves one or more enterprise funds
    B. Amounts allocated proportionately between governmental and business-type activities
    C. As part of governmental activities
    D. As part of business-type activities
    A. Usually as part of governmental activities, unless the internal service fund predominantly serves one or more enterprise funds
    (this multiple choice question has been scrambled)
  72. In terms of year-end closing entries, which of the following is true:
    A. The capital projects fund does not have closing entries at the end of the year, only when the project is completed are closing entries used
    B. The accounts in the governmental activities accounts related to just the capital asset are not closed at the end of the year
    C. Neither are correct
    D. Both are correct
    B. The accounts in the governmental activities accounts related to just the capital asset are not closed at the end of the year
    (this multiple choice question has been scrambled)
  73. An area that the city services auditor examines for the CCSF as discussed in class is:
    A. #1 the review of the CAFR process for professional standards
    B. #2 and #3 are correct
    C. #1 and # 2 and #3 are all correct
    D. #3 if the streets are clean
    E. #1 and #2 are correct 
    F. #2 the status of the various parks
    E. #2 the status of the various parks and #3 if the streets are clean
    (this multiple choice question has been scrambled)
  74. Which of the following financial concepts has been defined by the GASB as "the probability that a government will meet both its financial obligations to creditors, consumers, employees, taxpayers, suppliers, constituents, and others as they become due and its service obligation to constituents, both currently and in the future?
    A. Financial leverage
    B. Financial position
    C. Liquidity
    D. Financial condition
    B. Financial condition
    (this multiple choice question has been scrambled)
  75. Which of the following debt service fund accounts would not be closed at the end of each fiscal year?
    A. Fund Balance
    B. Estimated Revenues
    C. They would all be closed at the end of the year
    D. Revenues
    E. Expenditures—Bond Interest
    A. Fund Balance
    (this multiple choice question has been scrambled)
  76. Which of the following would not be included within the financial section of the comprehensive annual financial report (CAFR)?a. Letter of transmittal
    b. Management's discussion and analysis (MD&A)
    c. Independent auditor's report
    d. Required supplementary information (RSI)
    a. Letter of transmittal
  77. A tax agency fund agrees to collect $10,000 in property taxes for the Santana School District. Which of the following are correct?
    A. None of the answers are correct
    B. #2 A budget entry is required on the agency’s accounts 
    C. #1 No entry is required
    D. #3 There is a debit to an accounts receivable on the agency accounts
    E. #2 and #3 are correct
    D. #3 There is a debit to an accounts receivable on the agency accounts
    (this multiple choice question has been scrambled)
  78. Which of the following is the appropriate measurement focus for agency funds?
    A. Cash and cash equivalents
    B. Economic resources
    C. Current financial resources
    D. Accrual basis
    B. Economic resources
    (this multiple choice question has been scrambled)
  79. Encumbrances are reestablished:
    A. With an accounting entry at the start of the fiscal year
    B. Encumbrances expire at the end of the fiscal (budget) year and are not re-established
    C. With an accounting entry at the end of the fiscal year 
    A. With an accounting entry at the start of the fiscal year
    (this multiple choice question has been scrambled)
  80. The debt service fund for the City of Harrison collected property taxes to be used for debt payments.  The following entry will be made on the on the debt service fund’s books:
    A. A credit to revenue
    B. A credit to accounts receivable
    C. A credit to other financing uses
    D. A credit to other financing sources
    E. A credit to transfers in 
    F. No entry will be made, the entry will be made on the books for the City of Harrison’s general fund
    B. A credit to accounts receivable
    (this multiple choice question has been scrambled)
  81. Which of the following grants received by a city would most appropriately be recorded in a "pass-through" agency fund?
    A. A state grant to a local not-for-profit organization for summer employment of juveniles
    B. A federal grant via the state government for which the city will be responsible for upgrading low-rent housing.
    C. A federal grant made directly to a county for repairing and overhauling bridges
    D. A federal grant for various purposes, for which the ultimate allocation and use of the money will be decided by the state government. The city will serve as a conduit for the money between the state government and various not-for-profit organizations who will use the money
    D. A federal grant for various purposes, for which the ultimate allocation and use of the money will be decided by the state government. The city will serve as a conduit for the money between the state government and various not-for-profit organizations who will use the money
    (this multiple choice question has been scrambled)
  82. The sale of tax-supported bonds at par for the eventual construction of a new city jail would require recognition in which of the following funds and/or activities?
    A. Capital projects fund and the governmental activities
    B. Debt service fund and the governmental activities
    C. Capital projects and debt service funds
    D. Debt service fund, capital projects, and governmental activities
    A. Capital projects fund and the governmental activities
    (this multiple choice question has been scrambled)
  83. The term “the nut” as discussed in class is found in:
    A. Neither Governmental Fund Accounting nor Government-Wide Accounting
    B. Governmental Fund Accounting
    C. Just the governmental funds, do not consider the proprietary or fiduciary funds
    D. Government-Wide Accounting
    E. Both Governmental Fund Accounting and Government-Wide Accounting
    D. Government-Wide Accounting
    (this multiple choice question has been scrambled)
  84. The budgetary accounts, as discussed in the text, are considered:
    A. Discretionary accounts 
    B. All are correct
    C. As a separate set of accounts that are reconciled at the end of the year
    D. Part of the fund equity
    D. Part of the fund equity
    (this multiple choice question has been scrambled)
  85. The liability for general obligation bonds should be recorded in the:
    A. Capital projects fund
    B. Governmental activities journal
    C. Debt service fund
    D. General Fund
    B. Governmental activities journal
    (this multiple choice question has been scrambled)
  86. Residual equity in a capital projects fund are generally transferred to what fund?
    A. Debt service
    B. Internal service fund
    C. General
    D. Special revenue
    A. Debt service
    (this multiple choice question has been scrambled)
  87. Interfund transfers and debt issue proceeds received by the General Fund would be recorded as:
    A. Other proceeds
    B. Other financing sources
    C. Other financing activities
    D. Would not be recorded by the General Fund – only on the government-wide side
    B. Other financing sources
    (this multiple choice question has been scrambled)
  88. General purpose external financial statements include:
    A. Neither Governmental Fund Accounting nor Government-Wide Accounting
    B. Both Governmental Fund Accounting and Government-Wide Accounting
    C. Government-Wide Accounting 
    D. Just the governmental funds, do not consider the proprietary or fiduciary funds
    E. Governmental Fund Accounting
    B. Both Governmental Fund Accounting and Government-Wide Accounting
    (this multiple choice question has been scrambled)
  89. Component units are reported in the financial statements using the following term(s):
    A. Fund based and separated
    B. Blended and discrete
    C. Discrete
    D. Fund based
    E. Separate
    F. Blended
    B. Blended and discrete
    (this multiple choice question has been scrambled)
  90. The account balance in the other financing uses account is normally a:
    A. Debit
    B. Credit
    C. The normal balance can be either  a debit or a credit
    A. Debit
    (this multiple choice question has been scrambled)
  91. On the due date for bond interest, the debt service fund journal entry (or entries) will include a debit to: 
    A. Interest Expense
    B. Appropriations
    C. Expenditures—Bond Interest
    D. Interfund Transfers In
    C. Expenditures-Bond Interest
    (this multiple choice question has been scrambled)
  92. Which of the following may properly be reported as a component of net assets in the proprietary fund statement of net assets?
    A. Contributed capital
    B. Designated equity
    C. Retained earnings
    D. Restricted net assets
    D. Restricted net assets
    (this multiple choice question has been scrambled)
  93. Revenue items such a property taxes, fines, sales tax are reported using:
    A. Governmental Fund Accounting
    B. Just the governmental funds, do not consider the proprietary or fiduciary funds
    C. Both Governmental Fund Accounting and Government-Wide Accounting
    D. Government-Wide Accounting 
    E. Neither Governmental Fund Accounting nor Government-Wide Accounting
    C. Both Governmental Fund Accounting and Government-Wide Accounting
    (this multiple choice question has been scrambled)
  94. Which of the following would increase the balance in net assets—invested in capital assets, net of related debt?
    A. A gift of land to the city restricted by the donor to be used by the city airport, which is accounted for as an enterprise fund
    B. Recording annual depreciation on capital assets
    C. Issuance of long-term debt to be used to acquire equipment for the police department
    D. Acquisition of a building to be used by the police department
    D. Acquisition of a building to be used by the police department
    (this multiple choice question has been scrambled)
  95. Transactions for capital assets can be found in:
    A. The government-wide financial statements
    B. Both the fund financial statements and the government-wide financial statements
    C. The fund financial statements
    B. Both the fund financial statements and the government-wide financial statements
    (this multiple choice question has been scrambled)
  96. Which of the following funds of a government uses the modified accrual basis of accounting:
    A. Internal service
    B. Private-purpose trust fund
    C. Enterprise
    D. All funds can use the modified approach
    E. General fund
    E. General fund
    (this multiple choice question has been scrambled)
  97. Which of the following circumstances would indicate that a potential component unit (PCU) should be included as part of the governmental financial reporting entity?
    A. The PCU has sufficient operational and financial dependence that the primary government can impose its will on the PCU
    B. Officials of the primary government appoint a majority of the members of the governing board of the PCU
    C. The primary government does not approve the operating budget of the potential component unit
    D. Officials of the primary government appoint a majority of the members of the PCU's governing board and the primary government is able to impose its will on the PCU
    D. Officials of the primary government appoint a majority of the members of the PCU's governing board and the primary government is able to impose its will on the PCU
    (this multiple choice question has been scrambled)
  98. Reporting on asset preservation is related to:
    A. All capital assets
    B. Debt covenants for bonds used to acquire fixed assets 
    C. Fiduciary funds
    D. Utility accounting
    E. The modified approach
    E. The modified approach
    (this multiple choice question has been scrambled)
  99. When the budget is recorded for a city for the sale of the bonds:
    A. #1 no entries are required on the debt service fund
    B. #2 there will be a credit to estimated revenues
    C. #1 and #2 are correct
    D. Both #1 and #3 are correct
    E. #3 there will be a debit to estimated other financing sources
    A. #1 no entries are required on the debt service fund
    (this multiple choice question has been scrambled)
  100. At year end in the governmental funds accounts: 
    A. #3 the interfund transfers are carried over to the next year
    B. #1 and #2 and #3 are all correct
    C. #1 the encumbrance accounts are closed
    D. #2 the reserves for encumbrances are closed
    E. Both #1 and #2 are correct
    C. #1 the encumbrance accounts are closed
    (this multiple choice question has been scrambled)
  101. If a government issues debt to finance capital acquisition by another government and the proceeds of the debt are a short time later delivered to the intended beneficiary government, how is the related long-term debt reflected in a governmental fund of the issuing government?
    A. Revenue and expenditure
    B. Other financing source and other financing use
    C. Other financing source and expenditure
    D. It is not displayed on the face of the financial statements; however, it is disclosed in the notes to the financial statements
    B. Other financing source and other financing use
    (this multiple choice question has been scrambled)
  102. The city of Columbus issued bonds at par for the construction of a new city office building. The receipt of the bond proceeds could result in journal entries in which funds under correct governmental accounting?
    A. Capital Projects Fund: Yes; Debt Service Fund: No
    B. Capital Projects Fund: Yes; Debt Service Fund: Yes
    C. Capital Projects Fund: No; Debt Service Fund: No
    D. Capital Projects Fund: No; Debt Service Fund: Yes
    A. Capital Projects Fund: Yes; Debt Service Fund: No
    (this multiple choice question has been scrambled)
  103. Which of the following resource inflows would be recorded as a revenue of a debt service fund?
    A. Taxes collected by the General Fund and transferred to the debt service fund
    B. Property taxes levied by the debt service fund for debt service purposes
    C. Receipt of the premium on a new bond issue
    D. Transfer of the residual equity of a capital project from a capital projects fund to the debt service fund
    B. Property taxes levied by the debt service fund for debt service purposes
    (this multiple choice question has been scrambled)
  104. What journal entry should be made at the beginning of the fiscal year to reestablish the encumbrances account of a capital projects fund for a multi-year capital project?
    A. Debit Encumbrances and credit Reserve for Encumbrances
    B. Debit Fund Balance and credit Encumbrances
    C. Debit Encumbrances and credit Fund Balance
    D. Debit Reserve for Encumbrances and credit Encumbrances
    C. Debit Encumbrances and credit Fund Balance
    (this multiple choice question has been scrambled)
  105. Which of the following funds of a government uses the same basis of accounting as a proprietary fund?
    A. Investment trust fund
    B. Permanent trust
    C. Capital projects
    D. Special revenue
    A. Investment trust fund
    (this multiple choice question has been scrambled)
  106. At the government-wide level, net assets related to capital assets should be reported as: a. Invested in capital assets, net of related debt
    b. Restricted or unrestricted financial assets, as appropriate
    c. General capital assets, preceding general long-term liabilities
    d. Net equity in capital assets
    e. None of the above are correct – this is just footnote disclosure
    a. Invested in capital assets, net of related debt
  107. Under the modified accrual basis of accounting, revenues should be recognized when:
    A. Authorized by the budget ordinance
    B. When earned and collected 
    C. Collected in cash
    D. Earned
    E. None of these
    E. None of these
    (this multiple choice question has been scrambled)
  108. Aggregate view of the financial results is found in which of the following:
    A. Just the governmental funds, do not consider the proprietary or fiduciary funds
    B. Both Governmental Fund Accounting and Government-Wide Accounting
    C. Government-Wide Accounting
    D. Governmental Fund Accounting
    d. Neither Governmental Fund Accounting nor Government-Wide Accounting
    C. Government-Wide Accounting
    (this multiple choice question has been scrambled)
  109. Which of the following best describes the recommended format for the government-wide statement of activities?
    A. Program revenues minus expenses plus general revenues equals change in net assets
    B. Program revenues plus general revenues minus expenses equals change in net assets
    C. Expenses minus program revenues plus general revenues equals change in net assets
    D. Program revenues minus expenses minus other revenues and expenses equals change in net assets
    C. Expenses minus program revenues plus general revenues equals change in net assets
    (this multiple choice question has been scrambled)
  110. The account balance in the Reserve for Encumbrance account is normally a:
    A. Credit
    B. The normal balance can be either  a debit or a credit
    C. Debit 
    A. Credit
    (this multiple choice question has been scrambled)
  111. Equipment in general governmental service that had been acquired several years ago by a capital projects fund at a cost of $40,000 was sold for $15,000 cash. Accumulated depreciation of $30,000 existed at the time of the sale. The journal entry to be made in the governmental activities journal will include all of the following EXCEPT:
    A. A credit to Other Financing Sources for $5,000
    B. A debit to Cash for $15,000
    C. A credit to Equipment for $40,000
    D. A debit to Accumulated Depreciation for $30,000
    A. A credit to Other Financing Sources for $5,000
    (this multiple choice question has been scrambled)
  112. Generally speaking, transactions for the special revenue fund and the general fund can be recorded in:
    A. Neither Governmental Fund Accounting nor Government-Wide Accounting
    B. Just the governmental funds, do not consider the proprietary or fiduciary funds
    C. Government-Wide Accounting 
    D. Both Governmental Fund Accounting and Government-Wide Accounting
    E. Governmental Fund Accounting
    D. Both Governmental Fund Accounting and Government-Wide Accounting
    (this multiple choice question has been scrambled)
  113. The use of other financing uses and other financing sources is found in:
    A. Neither Governmental Fund Accounting nor Government-Wide Accounting
    B. Governmental Fund Accounting. Just the governmental funds, do not consider the proprietary or fiduciary funds
    C. Both Governmental Fund Accounting and Government-Wide Accounting
    D. Government-Wide Accounting
    B. Governmental Fund Accounting. Just the governmental funds, do not consider the proprietary or fiduciary funds
    (this multiple choice question has been scrambled)
  114. Which of the following is the appropriate basis of accounting for an agency fund?
    A. Modified cash basis
    B. Modified accrual basis
    C. Accrual basis
    D. Cash basis
    C. Accrual basis
    (this multiple choice question has been scrambled)
  115. Transactions for encumbrances capital assets can be found in:
    A. The government-wide financial statements
    B. The fund financial statements
    C. Both the fund financial statements and the government-wide financial statements
    B. The fund financial statements
    (this multiple choice question has been scrambled)
  116. Other financing sources and uses are:
    A. Accounted for with cash basis accounting
    B. Found in the governmental fund financial statements
    C. Found in the government-wide financial statements
    B. Found in the governmental fund financial statements
    (this multiple choice question has been scrambled)
  117. An internal allocation of funds done on a periodic basis to prevent overspending in the early part of the budget period is called a(an):
    A. Periodic appropriation
    B. Appropriation
    C. Allocation
    D. Allotment
    e. None of the above
    D. Allotment
    (this multiple choice question has been scrambled)
  118. Which of the following funds should be used if resources provided by a federal grant must be segregated and used for counseling of youthful offenders?
    A. Internal service fund
    B. Private-purpose trust fund
    C. General fund
    D. Special revenue fund
    E. All of these are correct
    D. Special revenue fund
    (this multiple choice question has been scrambled)
  119. Which of the following terms indicate or relate to the idea of a separate government or agency that is combined for the purposes of the whole entity?
    A. Component unit
    B. Modified accrual basis
    C. Discrete presentation
    D. Reporting entity
    E. Fund equity
    C. Component unit
    (this multiple choice question has been scrambled)
  120. Which of the following would be classified as a general revenue?
    A. Library fines
    B. Parking meter fees
    C. Special assessment charges for snow removal
    D. Fuel taxes earmarked for maintenance of roads and bridges
    E. All of these can be classified as general revenue
    D. Fuel taxes earmarked for maintenance of roads and bridges
    (this multiple choice question has been scrambled)
  121. Which of the following is not a budgetary account?
    A. Encumbrances
    B. All are budgetary accounts
    C. Appropriations
    D. Reserve for Encumbrances
    E. Estimated Revenues
    D. Reserve for Encumbrances
    (this multiple choice question has been scrambled)
  122. When the budget for the General Fund is recorded , the required journal entry will include:
    A. A credit to Appropriations
    B. A credit to Estimated Revenues
    C. A credit to Budgetary Fund Balance
    D. A debit to Encumbrances
    E. Three of these answers are correct
    A. A credit to Appropriations
    (this multiple choice question has been scrambled)
  123. Which of the following accounts of a government is credited when a purchase order is approved?
    A. Reserve for Encumbrances or Encumbrances Outstanding
    B. Cash
    C. Appropriations
    D. Encumbrances
    E. Vouchers Payable
    A. Reserve for Encumbrances or Encumbrances Outstanding
    (this multiple choice question has been scrambled)
  124. The Expenditures control account of a government is debited when:
    A. Supplies are ordered
    B. The invoice is paid
    C. Supplies previously encumbered are received
    D. The budget is recorded
    C. Supplies previously encumbered are received
    (this multiple choice question has been scrambled)
  125. Fiscal accountability includes:
    A. Operational efficiency
    B. Compliance with laws and regulations
    C. Whether or not the government has raised and spent funds in accordance with an approved budget and compliance with laws and regulations and operational efficiency
    D. Whether or not the government as raised and spent funds in accordance with an approved budget
    E. Both whether or not the government has raised and spent funds in accordance with an approved budget and compliance with laws and regulations
    E. Both whether or not the government has raised and spent funds in accordance with an approved budget and compliance with laws and regulations
    (this multiple choice question has been scrambled)
  126. The measurement focus and basis of accounting of special revenue funds are most similar to:
    A. None of the answers are correct
    B. Cash basis accounting
    C. GASB accounting
    D. FASB accounting
    E. Both the General Fund and the Permanent Fund
    E. Both the General Fund and the Permanent Fund
    (this multiple choice question has been scrambled)
  127. Which of the following steps in the acquisition of goods and services by an activity accounted for by the General Fund occurs first?
    A. Encumbrance
    B. Appropriation
    C. Expense
    D. Disbursement
    E. Expenditure
    B. Appropriation
    (this multiple choice question has been scrambled)
  128. Program revenues:
    A. Are linked to a specific function or program and are included in the government-wide financial statements
    B. Can be from exchange or non-exchange transactions
    C. Are linked to a specific function or program and are not included in general revenue in either the government-wide financial statements or in the fund financial statements
    D. Are usually in the form of a tax
    E. All of these characterize program revenue
    A. Are linked to a specific function or program and are included in the government-wide financial statements
    (this multiple choice question has been scrambled)
  129. A tax is assessed to each parcel of property to fund a new park as a result of a recent election. these funds would be most properly accounted by:
    A. A permanent fund
    B. A trust fund
    C. The general fund
    D. None of these funds
    E. A special revenue fund
    E. A special revenue fund
    (this multiple choice question has been scrambled)
  130. Long-term assets like vehicles would be accounted for with:
    A. Both the current financial resources focus and fiscal accountability
    B. All of these would be used to account for long-term assets
    C. Economic resources focus
    D. Fiscal accountability
    E. The current financial resources focus
    C. Economic resources focus
    (this multiple choice question has been scrambled)
  131. The Permanent Fund is used for:
    A. Holding funds for investments only
    B. Public-purpose trust funds
    C. All trust funds
    D. Only short-term sinking funds
    e. None of the above
    B. Public-purpose trust funds
    (this multiple choice question has been scrambled)
  132. When another fund pays the General Fund an amount in lieu of taxes, the account to be credited in the General Fund is:
    A. Cash
    B. Revenues
    C. Operating Transfer In
    D. Fund Balance
    e. None of the above are correct
    B. Revenues
    (this multiple choice question has been scrambled)
  133. Which of the following should not be reported as a liability of the General Fund?
    A. Tax anticipation notes payable
    B. Due to federal government
    C. General obligation bonds payable (due in 10 years)
    D. Vouchers payable
    C. General obligation bonds payable (due in 10 years)
    (this multiple choice question has been scrambled)
  134. Property tax revenue is recognized differently from sales tax revenue in fund accounting because:
    A. It is a derived revenue
    B. There is a legally enforceable claim for property tax revenue
    C. Property tax revenue can be estimated but sales tax revenue cannot be estimated
    B. There is a legally enforceable claim for property tax revenue
    (this multiple choice question has been scrambled)
  135. When the budget of a government is adopted and Estimated Revenues exceeds Appropriations, the excess is:
    A. Debited to Budgetary Fund Balance
    B. Debited to Reserve for Encumbrances
    C. Credited to Reserve for Encumbrances
    D. Credited to Budgetary Fund Balance
    D. Credited to Budgetary Fund Balance
    (this multiple choice question has been scrambled)
  136. Which of the following is one of the three sections of a comprehensive annual financial report (CAFR)?
    A. Supplementary section
    B. Investment section
    C. Single audit section
    D. Statistical section
    D. Statistical section
    (this multiple choice question has been scrambled)
  137. Which of the following items are typically reported differently between the Governmental Fund statements and the Governmental Activities column of the government-wide statements?
    A. Accounts payable and other accrued expenses
    B. Cash collected on property taxes receivable
    C. Inventories
    D. Capital outlays
    D. Capital outlays
    (this multiple choice question has been scrambled)
  138. Operational accountability for general capital assets funded by tax receipts of a government should be established in:
    A. The capital projects fund
    B. The appropriate governmental funds
    C. The governmental activities accounts at the government-wide level
    C. The governmental activity accounts at the government-wide level
    (this multiple choice question has been scrambled)
  139. When materials that were ordered for a capital projects fund for use on a construction project are received but the invoice has not yet paid, what account is debited?
    A. Vouchers payable
    B. Appropriations
    C. Construction Expenditures
    D. Encumbrances
    C. Construction Expenditures
    (this multiple choice question has been scrambled)
  140. The term that is closely related to the concept of liquidity is:
    A. Economic condition
    B. Financial condition
    C. Interperiod equity
    D. Financial position
    D. Financial position
    (this multiple choice question has been scrambled)
  141. Which of the following is not true?
    A. At year-end, budgetary and operating statement accounts of a debt service fund are closed in the same manner as is true for a General Fund or special revenue funds
    B. The debt service activity of a government may be properly accounted for within the General Fund unless law mandates the use of a debt device fund
    C. Debt service funds, unlike the General Fund and special revenue funds, do not use budgetary accounting procedures
    D. Expenditures for interest on tax supported long-term debt are not accrued even though best service funds are accounted for on the modified accrual basis
    C. Debt service funds, unlike the General Fund and special revenue funds, do not use budgetary accounting procedures
    (this multiple choice question has been scrambled)
  142. Which of the following accounts is least likely to be used by a tax agency fund?
    A. Revenues
    B. Taxes receivable for other funds and units
    C. Cash
    D. Due to other funds and units
    A. Revenues
    (this multiple choice question has been scrambled)
  143. When bonds are sold, there will be a:
    A. Debit to cash in the debt service fund accounts
    B. A debit to cash in the general fund accounts
    C. A credit to other financing uses
    B. A debit to cash in the general fund accounts
    (this multiple choice question has been scrambled)
  144. Infrastructure assets and long-term liabilities issued to finance infrastructure should be reported in the:
    A. Fund financial statements
    B. Management's discussion and analysis
    C. Letter of transmittal
    D. Government-wide financial statements
    D. Government-wide financial statements
    (this multiple choice question has been scrambled)
  145. An internal service fund normally uses which of the following budgetary accounts?
    A. Appropriations
    B. Estimated Revenue
    C. Encumbrances
    D. None of these are correct
    D. None of these are correct
    (this multiple choice question has been scrambled)
  146. One of the accounting entries made at the start of the year is to:
    A. #3 close out the reserve for encumbrances
    B. #1 reestablish the unexpended encumbrances with a credit entry
    C. #2 reestablish the unexpended encumbrances with a debit entry
    C. #2 reestablish the unexpended encumbrances with a debit entry
    (this multiple choice question has been scrambled)
  147. Which of the following resource inflows would be recorded as a revenue of a debt service fund?
    A. Property taxes levied by the debt service fund for debt service purposes
    B. Taxes collected by the General Fund and transferred to the debt service fund
    C. Transfer of the residual equity of a capital project from a capital projects fund to the debt service fund
    A. Property taxes levied by the debt service fund for debt service purposes
    (this multiple choice question has been scrambled)
  148. A term that describes a government's ongoing ability and willingness to raise revenues, incur debt, and meet its financial obligations as they become due is:
    A. Economic condition
    B. Financial position
    C. Fiscal capacity
    D. Financial condition
    C. Fiscal capacity
    (this multiple choice question has been scrambled)
  149. Which of the following is the most reliable means of distinguishing a trust relationship from an agency relationship for purposes of deciding which type of fiduciary fund should be used?
    A. Examine the length of time assets will be held, trust relationships are generally i existence longer than agency relationships
    B. Examine the aggregate of factors, such as the enactment that brought the relationship into existence, statutes, regulations, etc., that help define the nature of the relationship
    C. Examine the working of any agreements to determine if the word "trust" or "agency" is used
    D. Examine the amount of money involved, agency relationships generally involve smaller amounts
    B. Examine the aggregate of factors, such as the enactment that brought the relationship into existence, statutes, regulations, etc., that help define the nature of the relationship
    (this multiple choice question has been scrambled)
  150. Which of the following would be considered a general capital asset?
    A. Real estate purchased with the assets of a pension trust fund
    B. A computer for an internal service fund and used by the supplies department
    C. A vehicle purchased and maintained by an enterprise fund
    D. All are general capital assets
    E. A vehicle purchased for the police department
    E. A vehicle purchased for the police department
    (this multiple choice question has been scrambled)
  151. Which of these fiduciary fund types always has zero net assets?
    A. Agency funds
    B. Pension trust funds
    C. All of these funds have zero net assets
    D. Private-purpose trust funds
    E. Investment trust funds
    A. Agency funds
    (this multiple choice question has been scrambled)

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