acct test 3a

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acct test 3a
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2011-05-28 21:13:32
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acct test 3a
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  1. A fund that is used to account for assets held by a government acting as agent for one or more other governments units or for individuals or private organizations is a (n):
    a. Agency Fund
    b. Private-Purpose Trust Fund
    c. Investment Trust Fund
    d. Pension Trust Fund
    a agency fund
  2. A fund that exists when the government is the sponsor of a multigovernment investment pool and accounts for the external portion of the trust assets is a(n):
    a. Agency Fund
    b. Private-Purpose Trust Fund
    c. Investment Trust Fund
    d. Pension Trust Fund
    c Investment trust fund
  3. Which of the following is true regarding the financial statements of fiduciary funds?
    a. Fiduciary funds' financial statements include the statement of fiduciary net assets, the statement of changes in fiduciary net assets, and the statement of fiduciary cash flows
    b. Fiduciary funds are accounted for using the economic resources measurement focus and accrual basis of accounting
    c. Both of the above
    d. neither of the above
    b Fiduciary funds are accounted for using the economic resources measurement focus and accrual basis of accounting
  4. The tax agency fund of Eden County collected $2,000,000 for the Eden School District, $1,000,000 for the Village of Edenton, $1,200,000 for the Eden Park District and $700,000 for Eden County. County General Fund employees handle the collections, and a 3% collection fee is charged all units except the county. The amount to be remitted to the county General Fund would be:
    a. $826,000
    b. $126,000
    c. $147,000
    d. $747,000
    a $826,000
  5. Which of the following statement about agency funds is true?
    a. An agency relationship that usually results in the creation of an agency fund is the collection of taxes and other revenues by an official of one governemntal unit for other governmental units
    b. GASB madnates that a governmental unit that has no obligation to assume debt service on special assesment debt in the event porpoerty owners' default but that does perform the functions of billing property owners for the assessments, collecting installments of assessment and interest on the assessments, and paying from the collections interest & principal on the special assessment debt account for those activities in an agency fund
    c. both of the above
    d. neither of the above
    c both of the above
  6. Which is true regarding the bais of accounting for fiduciary funds?
    a. all are accounted for in the same manner as proprietary funds
    b. agency funds are accounted for using the same basis as governmental fund, trust funds are accounted for using the same basis as proprietary funds
    c. trust funds are accounted for using the same basis as governmental funds and agency funds are accounted forusing the same basis as proprietary funds
    d. all are accounted for in the same manner as governmental funds
    a all are accounted for in the same manner as proprietary funds
  7. An endowment to provide scholarships would most likely be accounted for in which of the following fund types:
    a. Agency Fund
    b. Investment Trust Fund
    c. Private-Purpose Trust Fund
    d. None of the above
    c Private purpose trust fund
  8. How are fiduciary funds presented in the government wide financial statements?
    a. combined with interal service funds
    b. combines with business activities
    c. combined with governmental activities
    d. none of the above
    d none of the above
  9. Investment Trust Funds are restricted to:
    a. external investment pools
    b. open-end mutual funds
    c. debt securities
    d. all of the above
    a external investment pools
  10. Agency fund assets and liabilities are to be recognized:
    a. at the time the government becomes responsible for the assets
    b. when they are available and measurable
    c. only in the govenment-wide financial statements
    d. none of the above
    a at the time the government becomes responsible for the assets
  11. Which of the following is true regarding the government-wide statement of activities?
    a. fiduciary activities are not reported
    b. discretely presented component units are not reported
    c. both of the above
    d. neither of the above
    a fiduciary activities are not reported
  12. The General Fund of the Cirty of Plymouth purchased a police car in the amount of $25,000. Which of the following would be true?
    a. the general fund statement of revenues, expenditures and changes in fund balances would report an expenditure of $25,000
    b. the government wide statement of activities would report an expense of $25,000
    c. both of the above
    a the general fund statement of revenues, expenditures and changes in fund balances would report an expenditure of $25,000
  13. For the depreciation of infrastructure...
    a. governments are required to record depreciation in the same manner as other depreciable fixed assets
    b. governments are required to record depreciation using a modified approach
    c. governments do not record depreciation for infrastructure
    d. governments are permitted a choice to use the modified approach or to record depreciation in the same manner as other depreciable fixed assets
    • d governments are permitted a choice to use the modified approach or to
    • record depreciation in the same manner as other depreciable fixed
    • assets
  14. Internal service funds are most commonly reported in which section of the government wide financial statements?
    a. governmental activities
    b. business type activities
    c. both A & B
    d. neither of the above
    a governmental activities
  15. The difference between assets & liabilities in the government wide statements is called _____.
    a. net assets
    b. fund balance
    c. net equity
    d. accrued equity
    a net assets
  16. Which of the following is true regarding the reporting of general fixed assets by state and local governments?
    a. fixed assets are reported in the government wide statement of net assets
    b. fixed assets are reported in the governmental funds balance sheet
    c. both of the above
    d. neither of the above
    a fixed assets are reported in the government wide statement of net assets
  17. A govenrment reported the following transfers in its governmental funds statement of revenues, expenditures, and changes in fund balances: 1. a transfer from the gernal fund to a special revenue fund in the amount of $400,000; 2. a transfer from the general fund to an internal service fund in the amount of $300,000; 3. a transfer from the general fund to a permanent fund in the amount of $200,000. The amount that would be shown as a transfer out in the governmental activities column in the statement of activities would be:
    a. $0; no transfer would be shown
    b. $400,000
    c. $600,000
    d. $1,000,000
    a $0; no transfer would be shown
  18. When making the worksheet entry to eliminate transfers which of the following would be acceptable considering transfers in of $240,000 and transfers out of $420,000?
    a. DR transfer in from other funds $240,000; CR transfer out from other funds $240,000
    b. DR transfer in from other funds $240,000 & Net assets $180,000; CR transfer out to other funds $420,000
    c. DR transfer in from other funds $420,000; CR transfer out to other funds $420,000
    d. DR transfer out from other funds $420,000; CR transfer in to other funds $420,000
    a DR transfer in from other funds $240,000; CR transfer out from other funds $240,000
  19. A governement reported, in its government-wide statement of net assets: assets of $80 million, including $40 million in capital assets (cost), with $12 million in accum depreciation, and; liabilities of $50 million, including long-term debt of $15 million, all related to capital asset acquisition. In addition, $4 million of cash was restricted for payment of debt service. The government's unrestricted net assets would be reported as:
    a. $3 million
    b. $13 million
    c. $15 million
    d. $5 million
    b $13 million
  20. The following balances exist at year end within the governmental activities of a government unit: transfers in: $150,000, transfers out: $120,000. When compiling the government wide financial statements, the journal entry to eliminate the transfer activity will include:
    a. a debit of $120,000 to transfers in
    b. a debit of $30,000 to transfers in
    c. a debit of $120,000 to transfers out
    d. none of the above
    a a debit of $120,000 to transfers in
  21. Which of the following is a legitimate reason for a private not-for-profit organization to havew a surplus (increase in net assets)?
    a. to establish working capital
    b. to retire debt
    c. both a & b above
    d. none of the above, not for profits should not have surpluses
    c both a & b above
  22. A donor made a gift of cash to a private not for profit organization in 2012 with an expressed purpose restriction. All the funds were expended in 2012. The organization must:
    a. record the gift as a temporarily restricted revenue, reclassify the funds to unrestricted, and then report the expense as unrestricted
    b. record the gift and expense as unrestricted
    c. record the gift and expense as temporarily restricted
    d. use either of the methods described in a or b
    d use either of the methods described in a or b
  23. Private not for profit entities are usually primarily concerned with which of the following performance measures?
    a. their program expense ratio
    b. return on investment
    c. change in net assets
    d. ending unrestricted net assets
    a their program expense ratio
  24. The three classes of net assets reported for a private not for profit organization include all of the following except:
    a. unrestricted net assets
    b. temporarily restricted net assets
    c. capital restricted net assets
    d. permanentaly restricted net assets
    c capital restricted net assets
  25. Henry Highbrow promises to donate $50,000 to his church toward the purchase of a new pipe organ if the church is able to raise matching funds of $50,000 from other contributors. At what point should the church record revenue?
    a. when the matching funds are raised
    b. when the organ is purchased
    c. when Henry makes his pledge
    d. when Henry pays the $50,000 to the church
    a when the matching funds are raised
  26. With the exception of collections, fixed assets may be recorded by a private not for profit as:
    a. temprarily restricted
    b. unrestricted
    c. not recoded if donated
    d. A & B are correct
    d A & B are correct
  27. The primary users of the financial statements of private not for profit organizations are:
    a. owners of the organization
    b. present and potential donors
    c. investors
    d. government agencies
    b present and potential donors
  28. Which of the following financial statements are required for voluntary health and welfare organizations?
    a. income statement
    b. statement of net assets
    c. statement of functional expenses
    d. budgetary comparison schedulre
    c statement of functional expenses
  29. A donor made a cash contribution of $90,000 to a private not-for-profit organization for the purpose of acquiring a building. The not for profit organization properly recorded the gift of cash as temporarily restricted revenue. When the building is acquired, the organization should:
    a. record the building as permanently restricted
    b. record the building as temporarily restricted
    c. record the plant as either unrestricted or temporarily restricted, as long as a consistent policy is followed
    d. show an expense equivalent to the amount paid for the building in unrestricted net assets and reclassify the same amount from temporarily restricted to unrestricted net assets
    c record the plant as either unrestricted or temporarily restricted, as long as a consistent policy is followed
  30. Reclassifications from permanently restricted net assets to temporarily restricted net assets would occur only under which of the following circumstances?
    a. time restrictions placed on the permanently restricted net assets have been met
    b. purpose restriction placed on the permanently restricted net assets have been met
    c. either of the above criteria have been met
    d. permanently restricted net assets would not be reclassified to temporarily restricted net assets
    d permanently restricted net assets would not be reclassified to temporarily restricted net assets

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