General Government Financial Resources Quiz

59 Questions | Total Attempts: 69

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General Government Financial Resources Quiz - Quiz

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Questions and Answers
  • 1. 
    Which of the following would not be considered a government or nonprofit organization?
    • A. 

      A software company that sells software exclusively to state and local governments

    • B. 

      A public elementary school

    • C. 

      A church

    • D. 

      A private trust organized for charitable contributions

  • 2. 
    The governmental GAAP hierarchy was established by
    • A. 

      The Governmental Accounting Standards Board (GASB)

    • B. 

      The Financial Accounting Standards Board (FASB)

    • C. 

      The American Institute of Certified Public Accountants (AICPA)

    • D. 

      The Financial Accounting Foundation

    • E. 

      The Government Accounting Office (GAO)

  • 3. 
    The primary users of external financial reports, as identified by the GASB, include al of the following except 
    • A. 

      Investors and creditors

    • B. 

      Citizens

    • C. 

      Governing boards

    • D. 

      All of the above are considered to be primary users of external financial reports

    • E. 

      Both items A and B

  • 4. 
    Business-type activities differ from governmental-type activities in that
    • A. 

      Most capital assets of business-type activities are considered to be revenue producing capital assets, while those in governmental-type activities generally are not

    • B. 

      Business-type activities never have the power to levy a tax

    • C. 

      Business-type activities do not adopt a budget

    • D. 

      All of the above statements accurately reflect primary differences between business-type and governmental type activities

    • E. 

      Items B and C only reflect primary differences between business-type and governmental-type activities

  • 5. 
    Which of the following is a characteristic that distinguishes government and not-for-profit (G&NP) organizations from business enterprises?
    • A. 

      Borrowing is not a significant source of financing

    • B. 

      The resource providers of G&NP organizations often do not receive serviced commensurate with the amount of resources they provide

    • C. 

      Net income is an appropriate performance evaluations measurement for most of these organizations

    • D. 

      Accumulating wealth on behalf of its constituents is a key goal of G&NP organizations and business enterprises

  • 6. 
    What best describes the relationship of the FASB and GASB?
    • A. 

      They are co-equal bodies with different areas of responsibility for standards setting

    • B. 

      The FASB standards are authoritative for governments. However, the GASB asks the GASB to establish guidelines for many unique transactions of government that the FASB does not have time to consider

    • C. 

      GASB standards are authoritative for governments unless they have been overruled by the FASB

    • D. 

      Governments are not permitted to apply any FASB standard under any circumstances for any government operations

  • 7. 
    General purpose external financial reports for state and local government entities must include
    • A. 

      Government-wide financial statements

    • B. 

      Management's discussion and analysis

    • C. 

      Fund financial statements

    • D. 

      Note disclosures

    • E. 

      All of the above should be included in general purpose external financial reports

    • F. 

      Items A and C only

  • 8. 
    The operation of a municipality's recreation facilities and sites such as ball fields, gymnasiums, and tracks are most likely to be accounted for in a 
    • A. 

      General Fund

    • B. 

      Enterprise Fund

    • C. 

      Capital Projects Fund

    • D. 

      Internal Service Fund

    • E. 

      Permanent Fund

  • 9. 
    The General Capital Assets nonfund account would be used to account for
    • A. 

      All capital assets acquired by a government entity regardless of the fund purchasing the assets

    • B. 

      Capital assets acquired with governmental fund resources that will be used in governmental fund activities

    • C. 

      Capital assets acquired with debt proceeds only

    • D. 

      Capital assets that are used by a variety of governmental and proprietary funds

    • E. 

      Capital assets that are solely revenue producing

  • 10. 
    Capital outlay expenditures would be least likely in a 
    • A. 

      General Fund

    • B. 

      Debt Service Fund

    • C. 

      Permanent Fund

    • D. 

      Capital Projects Fund

    • E. 

      Special Revenue Fund

  • 11. 
    Ashley Woods Village issued $4,000,000 in general obligation bonds to finance the widening of a local thoroughfare. This transactions will most likely 
    • A. 

      Increase fund balance in the General Fund by $4,000,000

    • B. 

      Decrease fund balance in the General Fund by $4,000,000

    • C. 

      Increase fund balance in the Capital Projects Fund by $4,000,000

    • D. 

      Decrease fund balance in the Capital Projects Fund by $4,000,000

    • E. 

      Have no effect on the balance of the Capital Projects Fund

  • 12. 
    Ashley Woods Village paid $1,000,000 principal and $200,000 interest on its general obligation bonds that it issued to finance the widening of a local thoroughfare. This transaction will most likely 
    • A. 

      Decrease fund balance in the Capital Projects Fund by $1,000,000

    • B. 

      Decrease fund balance in the Capital Projects Fund by $1,200,000

    • C. 

      Decrease fund balance in the General Fund by $1,000,000

    • D. 

      Decrease fund balance in the General Fund by $1,200,000

  • 13. 
    The police department of the City of Newport purchased 10 new patrol cars at the beginning of the new budget year at a total cash price of $250,000. This purchase will
    • A. 

      Increase capital assets reported in the General Fund by $250,000

    • B. 

      Have no effect on capital assets in the General Fund, but will increase the total expenditures in the General Fund by $250,000

    • C. 

      Increase capital assets reported in the General Fund by $250,000, as well as decrease fund balance in the General Fund by the same amount

    • D. 

      Have no effect on capital assets or fund balance

    • E. 

      Increase both capital assets and fund balance in the General Fund by $250,000

  • 14. 
    The City of Ruth owns and operates an electric utility. The utility purchases new electric transmission lines for $6,000,000 so that it can provide electricity to new customers. This purchase will most likely 
    • A. 

      Increase expenditures reported in the General Fund by $6,000,000

    • B. 

      Increase capital assets reported in the Capital Projects Fund by $6,000,000

    • C. 

      Increase capital assets reported in the Enterprise Fund by $6,000,000

    • D. 

      Increase expenses reported in the Enterprise Fund by $6,000,000

  • 15. 
    Which of the following would not be classified as an expenditure 
    • A. 

      Salaries and Wages

    • B. 

      Departmental supplied

    • C. 

      Depreciation

    • D. 

      Capital outlay

    • E. 

      Debt service- principal and interest

    • F. 

      All of the above would be classified as expenditures

  • 16. 
    Government-wide financial statements include 
    • A. 

      A statement of net assets

    • B. 

      A statement of activities

    • C. 

      A statement of cash flows

    • D. 

      All of the above

    • E. 

      Items A & B only

    • F. 

      None of the above

  • 17. 
    Caraway County financed its new $6,000,000 courthouse by issuing general obligation bonds. In the year financing was secured and construction began, the fund(s) and/or nonfund accounts that would most likely be affected would be 
    • A. 

      The General Fund

    • B. 

      The Enterprise Fund

    • C. 

      The Capital Projects Fund only

    • D. 

      The General Fund, General Capital Assets Nonfund Account, and the General Long-Term Liability Nonfund Account

    • E. 

      The Capital Projects Fund, General Capital Assets and General Long-Term Liabilities Nonfund Accounts

  • 18. 
    Which of the following is not a fund category used by state and local governments 
    • A. 

      Fiduciary funds

    • B. 

      Current funds

    • C. 

      Governmental funds

    • D. 

      Proprietary funds

  • 19. 
    Which of the following is an official fund category used by state and local governments? 
    • A. 

      Current fund

    • B. 

      Expendable funds

    • C. 

      Governmental funds

    • D. 

      General capital asset funds

  • 20. 
    Which of the following is not considered a fiduciary fund?
    • A. 

      Agency Fund

    • B. 

      Investment Trust Fund

    • C. 

      Permanent Fund

    • D. 

      Private-purpose Trust Fund

  • 21. 
    Which of the following is not considered a governmental fund?
    • A. 

      General Fund

    • B. 

      Debt Service Fund

    • C. 

      Permanent Fund

    • D. 

      Internal Service Fund

  • 22. 
    A government issues 10-year bonds to finance the construction of an addition to city hall. The bonds payable should be reported in the
    • A. 

      General Fund

    • B. 

      Capital Projects Fund

    • C. 

      Special Revenue Fund

    • D. 

      Long Term Debt Nonaccount Fund

  • 23. 
    General government financial resources that are required to be used to pay principal and interest on general governmental long-term debts are accounted for in 
    • A. 

      A Capital Projects Fund

    • B. 

      A Trust Fund

    • C. 

      The General Fund

    • D. 

      A Special Revenue Fund

  • 24. 
    General government financial resources to be used to finance construction of a general government construction project typically should be accounted for in 
    • A. 

      A Capital Projects Fund

    • B. 

      A Debt Service Fund

    • C. 

      The General Fund

    • D. 

      A Special Revenue Fund

  • 25. 
    General government financial resources that are required to be used to ay teacher salaries for a special education program are typically accounted for in
    • A. 

      A Capital Projects Fund

    • B. 

      A Debt Service Fund

    • C. 

      A Permanet Fund

    • D. 

      A Special Revenue Fund

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