3501 Final

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 3501 Final

  
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1. 
A municipality uses the allowance method to record uncollectible property taxes. If it decides to write off an account as uncollectible, it should:
A.
B.
C.
D.
2. 
What constitutes the basic financial statements of a government?
A.
B.
C.
D.
3.   The GAAP Hierarchy is issued by GASB.
A.
B.
4.   Budgetary accounts include Estimated Revenues, Revenues, and Accounts Receivable.
A.
B.
5. 
The budget of the General Fund of the City of Olde Glen shows an ap-propriation for capital equipment of $ 150,000. So far a fire engine, cost-ing $ 50,000, has been received and paid for. Another fire engine, expected to cost $ 60,000, has been ordered and an encumbrance for this amount is outstanding. How much can the city legally spend for a third fire engine this year?
A.
B.
C.
D.
6.  A financial reporting entity is defined as a primary government, as well as all other organizations that have an operational relationship with the primary government.
A.
B.
7. 
As a result of its annual fund- raising program, an NFPO receives pledges in the amount of $ 300,000 during December 2008, the last month of its reporting period. Based on its previous history regarding pledges, the NFPO believes that about $ 250,000 will be collected in the first 60 days of 2009, some will trickle in during the rest of 2009, and 10 percent will not be collected at all. How much should the NFPO report as net contributions receivable on its 2008 financial statements?
A.
B.
C.
D.
8.   GFOA is a standard-setting body.
A.
B.
9.  What is done with resources that remain in a Capital Projects Fund after the project is completed?
A.
B.
C.
D.
10.  A police care was ordered and estimated to cost $22,000. The $22,000 estimate was recorded as an encumbrance. Upon receipt of the police car with an invoice for $21,000, the encumbrance account will:
A.
B.
C.
D.
11.  At the time a government levies the property tax, an allowance for uncollectible property taxes is established so that
A.
B.
C.
D.
12. 
Which of the following information should be included in the financial section of a comprehensive annual financial report?
A.
B.
C.
D.
13.   A characteristic of government is that an exchange relationship exists between services received and resources provided.
A.
B.
14.  A component unit is dependent on the primary government if the primary government is obligated for its debt.
A.
B.
15. 
The governmental fund financial statements are intended to report on fiscal accountability.
A.
B.
16. 
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.
B.
C.
D.
17.  The budget is a master blueprint for planning, control and evaluation of financial operations.
A.
B.
18.  The purchase of office supplies on the consumption method would result in:
A.
B.
C.
D.
19.  A comprehensive annual financial report (CAFR) prepared in conformity with GASB recommendations should include which of the following sections?
A.
B.
C.
D.
20.  Budgetary accounts used in the General Fund include Estimated Revenues, Estimated Other Financing Sources, Appropriations, Estimated Other Financing Uses, and Encumbrances.
A.
B.
21.  Which of the following is not included in a cash budget?
A.
B.
C.
D.
22. 
Which of the following financial statements is required for VHWOs but not for ONPOs?
A.
B.
C.
D.
23. 
Which measurement focus should be used in government-wide financial statements?
A.
B.
C.
D.
24.  One characteristic that distinguishes other financing sources from revenues is that other financing sources:
A.
B.
C.
D.
25.   Proprietary funds use the economic resources measurement focus and accrual basis of accounting.
A.
B.
26. 
A village issues $ 3,000,000 of general obligation bonds to build a new fire-house. How should the debt be reported?
A.
B.
C.
D.
27. 
If a donor provides that interest earned on an endowment must be used to finance a particular program, how should the interest revenue be classified?
A.
B.
C.
D.
28. 
The section of the comprehensive annual financial report that presents tables and charts showing social and economic data in addition to financial trends, fiscal capacity, and operating information of the government is the:
A.
B.
C.
D.
29.  A  government should debit an expenditure account upon
A.
B.
C.
D.
30. 
Which of the following is a not a true statement about tax-exempt organizations?
A.
B.
C.
D.
31.   "Available appropriation" is calculated as the difference between appropriations and the sum of expenditures and encumbrances.
A.
B.
32.  Long- term bonds issued by a Capital Projects Fund ( are or are not) __________ reported as a liability of that fund.
A.
B.
33. 
Which of the following revenues of the General Fund are usually recorded before they are actually received in cash?
A.
B.
C.
D.
34. 
How should component units be displayed in government-wide financial statements?
A.
B.
C.
D.
35. 
Which of the following statements concerning deriving government-wide financial statement is true?
A.
B.
C.
D.
36.  Enterprise funds sell goods and services to internal users only.
A.
B.
37.  The prime function of budgetary entries is to
A.
B.
C.
D.
38.  The purchase of office supplies on the purchases method would result in:
A.
B.
C.
39. 
If the City of Castletown sells a surplus ambulance, the entry to record this sale on the books of the General Fund should include which of the following?
A.
B.
C.
D.
40.  Interfund transfers and debt issue proceeds received by the General Fund should be recorded as other financing sources.
A.
B.
41. 
For which of the following activities might an Agency Fund be used?
A.
B.
C.
D.
E.
42.  The Management's Discussion and Analysis section of the financial report includes projections about future fund balances for the next fiscal year.
A.
B.
43.  The GASB Statement No. 34 financial reporting model does not include fund financial statements.
A.
B.
44.  Under the modified accrual basis of accounting, expenditures generally are not recognized until:
A.
B.
C.
D.
45. 
Which of the following actions is not required to convert data from the governmental fund financial statements to enable preparation of the government-wide financial statements?
A.
B.
C.
D.
46. 
In what way can the amounts in an Investment Trust Fund be invested?
A.
B.
C.
D.
47. 
When should property tax revenues be recognized in government-wide financial statements?
A.
B.
C.
D.
48.  Governmental accounting methods were developed to completely control the budget.
A.
B.
49. 
The fund financial statements for governmental funds should include a
A.
B.
C.
D.
50. 
How are proceeds on the sale of an investment in excess of its book value handled in a Private Purpose Trust Fund?
A.
B.
C.
D.
51.  All purchases of goods and services and all interfund transfers of the General Fund are recorded as Expenditures.
A.
B.
52.  What is a key difference between budgets prepared by governmental units and by commercial organizations?
A.
B.
C.
D.
53.  Encumbrance accounting usually ( is or is not) ________ used in Capital Projects Funds.
A.
B.
54. 
From the following, select the two conditions that, taken together, will cause an entity to be reported as a component unit of a primary government:
A.
B.
C.
D.
E.
55.   FASB standards would be followed by a not-for-profit charitable organization
A.
B.
56.  The minimum requirements for general purpose external financial reporting are (1) management's discussion and analysis (MD&A), (2) the basic financial statements, including the notes to the financial statements, and (3) combining and individual fund financial statements.
A.
B.
57. 
Which of the following not-for-profit organizations is most likely to be tax-exempt under IRC Sec. 501(c)(3)?
A.
B.
C.
58. 
On July 1, 2008, a city used tax resources of $70,000 to acquire three police cruisers. The police cars were expected to have a useful life of three years, after which the salvage value would be $10,000. Describe the adjustment or adjustments needed to prepare government-wide financial statements from the city's calendar year 2008 fund-level financial statements
A.
B.
C.
D.
59. 
If Parnell Parish has two major governmental funds, to major Enterprise Funds, three fiduciary funds and two discrete component units, what would be the minimum number of columns reported in its government-wide Statement of Net Assets?
A.
B.
C.
D.
E.
F.
60.  An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract.
A.
B.
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