acct 1a

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acct 1a
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2011-06-01 22:18:09
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  1. What basis of accounting would the Enterprise Fund use?
    a. accrual
    b. modified accrual
    c. cash
    d. expanded accrual
    a accrual
  2. In order for a fund to exist, there must be:
    a. fiscal entity; assets set aside for a specific purpose
    c. both a and b are required
    d. a & b are optional and not required
    c both a and b are required
  3. Long term debt of a governmental unit would be reported in the:
    a. government-wide financial statements and proprietary fund financial statements
    b. government wide financial statements
    c. debt service funds of governmental fund financial statements and government wide financial statements
    d. notes to the financial statements only
    a government-wide financial statements and proprietary fund financial statements
  4. Governmental funds are to use the:
    a. economic resources measurement focus and accrual basis of accounting
    b. current financial resources measurement focus and accrual basis of accounting
    c. economic resources measurement focus and modified accrual basis of accounting
    d. current financial reources measurement focus and modified accrual basis of accounting
    d current financial reources measurement focus and modified accrual basis of accounting
  5. Under the modified accrual basis of accounting, revenues should be recognized when they are:
    a. authorized by the budget ordinance
    b. earned and measureable
    c. measurable and available to finance expenditures of the current period
    d. realized through collection
    c measurable and available to finance expenditures of the current period
  6. The fund statements for governmental funds are presented using the
    a. economic resources measurement focus and the accrual basis of accounting
    b. current financial resources measuremnt focus and the modified accrual basis of accounting
    c. current financial resources measurement focus and the accrual basis of accounting
    d. economic resources measurement focus and the modified accrual basis of accounting
    b current financial resources measuremnt focus and the modified accrual basis of accounting
  7. The ____ fund accounts for all resources other than those required to be accounted for in other funds.
    a. special revenue
    b. general
    c. enterprise
    d. agency
    b general
  8. Which of the following funds is not a fiduciary fund?
    a. private purpose trust fund
    b. special revenue fund
    c. pension fund
    d. investment trust fund
    b special revenue fund
  9. Which of the following characteristics would not define an organization as governmental?
    a. the power to act and enforce a tax levy
    b. the potential for unilateral dissolution by a government with the net assets reverting to a government.
    c. the receipt of grant money from a state or local government for the purpose of providing services to the public
    d. all of the above
    c the receipt of grant money from a state or local government for the purpose of providing services to the public
  10. The governmental accounting standards board has been given authority to establish accounting and financial reporting standards for:
    a. all governmental units and agencies
    b. federal, state, and local governments
    c. all governmental units and all not for profit organizations
    d. state and local governmental entites, and governmentally owned utilities, authorities, hospitals, and colleges and universitites
    • d state and local governmental entites, and governmentally owned
    • utilities, authorities, hospitals, and colleges and universitites
  11. Government wide statements use the:
    a. current financial resources measurement focus and accrual basis of accounting
    b. economic resources measurement focus and accrual basis of accounting
    c. economic resources measurement focus and modified accrual basis of accounting
    d. none of the above, the fiduciary funds have no reveneus
    b economic resources measurement focus and accrual basis of accounting
  12. Level "A" GAAP for Cook County Hospital, a public hospital, would be established by the:
    a. governmental accounting standards board
    b. financial accounting standards board
    c. hospital financial management association
    d. american institute of certified public accountants
    a governmental accounting standards board
  13. The FASB has the authority to establish accounting and financial reporting standards for:
    a. Federal government
    b. Private not for profits
    c. publich not for profits
    d. state and local governements
    b Private not for profits
  14. Which of the following is a fiduciary fund?
    a. internal service
    b. permant
    c. enterprise
    d. investment trust
    d investment trust
  15. Governmental funds do not include:
    a. special revenue funds
    b. internal service funds
    c. debt service funds
    d. the general fund
    b internal service funds
  16. Which of the following characteristics would define an organization as governmental?
    a. the power to enact and enforce a tax levy
    b. the potential for unilateral dissolution by a government with the net assets reverting to a government
    c. the receipt of grant money from a state or local government for the purpose of providing services to the public
    d. both a and b
    d both a and b
  17. Notre Dame University, a private institution, has level "A" GAAP established by the:
    a. american institute of certified public accountants
    b. governmental accounting standards board
    c. financial accounting standards board
    d. national association of college and university business officers
    c financial accounting standards board
  18. The term "propritary funds" applies to:
    a. enterprise and internal service funds
    b. pension, investment trust and enterprise funds
    c. enterprise, internal service, and private purpose trust funds
    d. none of the above answers are correct
    a enterprise and internal service funds
  19. A government may have _____ general fund(s) in a given year.
    a. as many as needed
    b. only one
    c. the number will vary depending on the needs of the government
    d. none of the above
    b only one
  20. Which of the following organizations has authority to establish accounting and financial reporting standards for the federal government?
    a. federal accounting standards advisory board
    b. office of management and budget
    c. governmental accounting standards board
    d. none of the above; no one has been granted authority to set standards for the federal government
    a federal accounting standards advisory board
  21. Which of the following is true regarding the governmental fund statements?
    a. the governmental fund statements include discretely presented component units thare are governmental in nature
    b. the governmental fund statemetns are prepared using the current fianncial resources measurement focus and modified accrual accounting
    c. both of the above
    d. neither of the above
    b the governmental fund statemetns are prepared using the current fianncial resources measurement focus and modified accrual accounting
  22. Which of the following is true regarding the government wide financial statements?
    a. the government wide financial statements include the statement of net assets and the statement of activities
    b. the government wide financial statemetns are prepared using the current financial resources measurement focus and the modified accrual basis of accounting
    c. both of the above
    d. neither of the above
    a the government wide financial statements include the statement of net assets and the statement of activities
  23. A budgetary comparison schedule is required for?
    a. the general fund
    b. each special revenue fund that has a legally adopted annual budget
    c. enterprise funds
    d. a and b only
    d a and b only
  24. Which of the following is true regarding the government wide statement of activities?
    a. the statemetn of activities includes depreciation expense
    b. transfers between governmental and business type activites are eliminated and do not appear on the government wide statement of activites
    c. in the government wide statement of activites, "special items" are those items that are both unusual and infrequent and are not under control of management.
    d. taxes levied for specific functions may be reported as program revenue.
    a the statemetn of activities includes depreciation expense
  25. In governmental fund statements revenues are reported by ____ and expenditures are reported by ____ and by _____.
    a. source, character, function
    b. source, source, character
    c. function, character, source
    d. function, function, source
    a source, character, function
  26. Under GASB rules for the financial reporting entity:
    a. component units are included if the primary government is financially accountable for their operations.
    b. counties are component units of the state government
    c. blended and discretely presented component units are to be reported in government wide financial statements but not in fund financial statements
    d. component units must be reported in columns (discrete presentation) separate from the funds of a primary government
    d component units must be reported in columns (discrete presentation) separate from the funds of a primary government
  27. Which statement is presented using the accural basis of accounting?
    a. governmental fund balance sheet
    b. government wide statement of activities
    c. statement of revenues, expenditure and changes in fund balances
    d. a and c
    b government wide statement of activities
  28. Which of the following is true regarding fiduciary fund financial statements?
    a. fiduciary fund financial statements include the statement of fiduciary net assets and the statement of changes in fiduciary net assets
    b. fiduciary fund financial statements are prepared on the current financial resources measurement focus and modified accrual accounting
    c. both of the above
    d. neither of the above
    • a fiduciary fund financial statements include the statement of
    • fiduciary net assets and the statement of changes in fiduciary net
    • assets
  29. Which of the following is true regarding fiduciary funds?
    a. fiduciary funds are reported in the fiduciary fund financial statements but not in the government wide financial statements
    b. agency funds would be reported in both the statement of fiduciary net assets and the statement of changes in fiduciary net assets
    c. both of the above
    d. neither of the above
    a fiduciary funds are reported in the fiduciary fund financial statements but not in the government wide financial statements
  30. Which of the following is included in required supplementary information (RSI)?
    a. management's discussion and analysis (MD&A)
    b. budgetary comparison schedule
    c. the schedule of funding progress and schedule of employer contributions when the government reports a pension trust fund
    d. all of the above
    d all of the above
  31. Which of the following is one of the criteria to determine if a fund is considered to be a major fund?
    a. total assets, liabilities, revenues or expenditures of the individual governmental fund constitutes 10% of the governmental funds category
    b. total asssets, liabilities, revneues or expenditures/expenese are 5% of the total of the governmental and enterprise category. Other funds may be designated major funds at the discretion of management
    c. both a and b are required
    d. either a or b will qualify a fund to be a major fund
    c both a and b are required
  32. Which of the following is true regarding the proprietary fund financial statements?
    a. the proprietary fund financial statements include the statement of net assets, the statement of revenues, expenses, and changes in fund net assets, and the statement of cash flows
    b. the proprietary fund financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting
    c. both of the above
    d. neither of the above
    c both of the above
  33. Which of the following is not true regarding the government wide financial statements
    a. the government wide financial statements are not required to present prior year data
    b. the government wide financial statements include a statement of net assets, statement of activities, and statement of cash flows
    c. the government wide financial statements include capital assets, including infrastructure, and reflect depreciation, except for infrastructure using the modified approach
    d. all of the above are true
    • b the government wide financial statements include a statement of net
    • assets, statement of activities, and statement of cash flows
  34. Which of the following is true regarding the government wide statement of activities?
    a. the government wide statement of activities may reflect expenses either by function (general government, public safety, etc) or by object or national classification (salaries, supplies, etc)
    b. the government wide statement of activites is prepared using the modified accrual basis of accounting for government activities and using the accrual basis of accounting for business type activities
    c. the government wide statement of activities reflects taxes as general revenues
    d. indirect program expenses may not be allocated to the other functional areas
    c the government wide statement of activities reflects taxes as general revenues
  35. Which of the following is true regarding the reporting of major funds in the governmental funds fiancial statements?
    a. the general fund is always considered a major fund
    b. a fund is considered major if its revenues, expenditures, assets or liabilities exceed 10% of the total governmental fund categories and if the same element (revenues, expenditures, assets or liabilities) exceeds 5% of the governmental and enterprise funds combined
    c. both of the above
    d. neither of the above
    c both of the above
  36. Which of the following is true with respect to the general fund
    a. the general fund is considered to be a major fund if the combined total of assets, liabilities, revenues and expenses exceeds 10% of the total of all governmental funds
    b. the general fund is always considered to be a major fund when preparing fund basis financial statements
    c. the general fund is never considered to be a major fund when preparing fund basis financial statements
    d. the general fund is not reported as part of the CAFR
    b the general fund is always considered to be a major fund when preparing fund basis financial statements
  37. What are the three major sections of the comprehensive annual financial report?
    a. introductory section, financial section, statistical section
    b. introductory section, financial section, management discussion and analysis
    c. introductory section, financial section, budgetary comparison
    d. introductory section, financial section, reporting infrastructure
    a introductory section, financial section, statistical section
  38. What statements are required in the government wide financial statements?
    A. statement of activities
    B. both a and b
    C. cash flow statement
    D. statement of net assets
    B. both a and b
    (this multiple choice question has been scrambled)
  39. CAFR standard for:
    a. comprehensive annual financial report
    b. comprehensive annual fiscal report
    c. cumulative annual financing report
    d. comprehensive accounting financial report
    a comprehensive annual financial report
  40. Which of the following is true regarding component units?
    a. component units could include towns, school disctricts, counties and municipalities
    b. component units may be reported discretely in the government wide statements or may be blended as a fund in the fund financial statements (and thus also include in the government wide financial statements)
    c. both of the above
    d. neither of the above
    • b component units may be reported discretely in the government wide
    • statements or may be blended as a fund in the fund financial statements
    • (and thus also include in the government wide financial statements)
  41. The Fire Department of a certain city received an appropriation in the amount of $12 million for the fiscal year ended 12/31/12. During the month ended 1/31/12 the following transactions occurred: 1) purchase orders where issued in the amount of $400,000; 2) purchase orders, related to 1) above were filled in the amount of $380,000; the related invoice amount was $368,000; invoices were paid in the amount of $350,000; 3) salaries were accrued and paid in the amount of $575,000
    The amount available for the fire department as of 1/31/12 would be:
    a. $10,787,000
    b. $11,037,000
    c. $11,077,000
    d. $11,057,000
    b $11,037,000
  42. Where is tax supported long term debt reported?
    a. general fund balance sheet
    b. special revenue funds balance sheet
    c. debt service funds balance sheet
    d. government wide statement of net assets
    d government wide statement of net assets
  43. The general ledger journal entry in the general fund to record the adoption of a budget would include:
    a. a debit to estimated revenues control
    b. a credit to estimated other financing sources control
    c. a debit to budgetary fund balance reserve for encumbrances
    d. a debit to appropriation control
    a a debit to estimated revenues control
  44. What is the first step a government takes in acquiring goods or services through the general fund?
    a. appropriation
    b. expenditure
    c. requisition order
    d. encumbrance
    a appropriation
  45. When liabilities authorized by an appropriation have been incurred, the appriation is said to be:
    a. expensed
    b. encumbered
    c. expended
    d. collected
    c expended
  46. Governmental funds fund balance is displayed in which of the following categories?
    a. nonspendable, spendable, assigned, unassigned
    b. nonspendable, restricted, unrestricted
    c. restricted, unrestricted, assigned, unassigned
    d. nonspendable, restricted, committed, assigned, unassigned
    d nonspendable, restricted, committed, assigned, unassigned
  47. The modified accrual basis is a distinct system of accounting that:
    a. differs from accrual accounting only in its failure to recognized long term assets and liabilities
    b. records expenditures and fund balances
    c. records expenses and revenues the same as accrual accounting
    d. is equivalent to cash basis accounting
    b records expenditures and fund balances
  48. To record the budget for the general fund
    a. estimated revenue control is debited
    b. expenditure control is debited
    c. appropriations control is debited
    revenue control is debited
    a estimated revenue control is debited
  49. Sales taxes, income taxes, and motor fuel taxes are examples of which class of nonexchange transactions?
    a. imposed nonexchange transactions
    b. derived tax revenues
    c. government mandated nonexchange transactions
    d. voluntary nonexchange transactions
    b derived tax revenues
  50. At what point would the general fund account "budgetary fund balance - - reserve for encumbrances" be debited?
    a. when an item is ordered by the government
    b. when an authorized liability is incurred (government receives item)
    c. when cash is paid to the vendor
    d. a or b depending on authorized appropriations
    b when an authorized liability is incurred (government receives item)

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