Financial Information Questions! Trivia Quiz

18 Questions | Total Attempts: 262

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Financial Information Questions! Trivia Quiz

Financial information questions trivia quiz. Different transactions calls for different ways of reporting and this quiz is designed to not only test your vocabulary knowledge when it comes to financial information but to also how to treat some transactions when recording them in financial statements. Do give it a try and get to polish up on your skills and add on to them as well. All the best and keep practicing!


Questions and Answers
  • 1. 
    Which of the following is a correct statement about how financial information for the activities of governments should be reported?
    • A. 

      Information about business-type activities should be reported in both the government-wide and proprietary fund financial statements using the same basis of accounting for both

    • B. 

      Information about governmental activities should be reported in both the government-wide and governmental fund financial statements using the same basis of cost accounting for both

    • C. 

      Information about fiduciary activities should be reported in both the government-wide and fiduciary fund financial statements, using the same basis of accounting for both.

    • D. 

      All of the above

  • 2. 
    Which of the following statements is true regarding the basic financial statements of a state or local government?
    • A. 

      Separate columns should be provided in the government-wide financial statements for governmental activities and business-type activities

    • B. 

      Governmental fund and proprietary fund financial statements should provide a separate column for each major fund

    • C. 

      Aggregate information about all non-major governmental funds or non-major enterprise funds should be reported in a single column of the governmental fund or proprietary fund financial statements

    • D. 

      All of the above

  • 3. 
    In the reporting of governmental activities, fiscal accountability is demonstrated by:
    • A. 

      Government-wide financial statements

    • B. 

      Governmental fund financial statements

    • C. 

      Both fund and government-wide financial statements

    • D. 

      Neither fund nor government-wide financial statements

  • 4. 
    The measurement focus and basis of accounting that should be used for the governmental fund financial statements are:
    • A. 

      MEASUREMENT FOCUS: Current financial resources BASIS OF ACCOUNTING: Modified accrual

    • B. 

      MEASUREMENT FOCUS: Current financial resources BASIS OF ACCOUNTING: Accrual

    • C. 

      MEASUREMENT FOCUS: Economic resources BASIS OF ACCOUNTING: Modified accrual

    • D. 

      MEASUREMENT FOCUS: Economic resources BASIS OF ACCOUNTING: Accrual

  • 5. 
    Which of the following statements is true regarding the definition of a fund?
    • A. 

      A fund is a fiscal and accounting entitiy

    • B. 

      A fund has a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances and changes therein

    • C. 

      Resources, related liabilities, and residual equities or balances and changes therein are segregated for the purpose of carrying out specific activities or attaining certain objectives.

    • D. 

      All of the above

  • 6. 
    Capital assets used for governmental activities, such as those of the police department, should be reported in:
    • A. 

      Governmental fund financial statements only

    • B. 

      Government-wide financial statements only

    • C. 

      Neither governmental fund nor government-wide financial statements

    • D. 

      Both governmental fund and government-wide financial statements

  • 7. 
    Assets and liabilities of activities for which the government is acting in either an agency or trustee capacity for individuals, organizations, or other governments should be reported in:
    • A. 

      The fiduciary column of the government-wide financial statements

    • B. 

      The fiduciary fund financial statements

    • C. 

      Both government-wide and fiduciary fund statements

    • D. 

      Neither government-wide nor fiduciary fund statements

  • 8. 
    Under the modified accrual basis of accounting:
    • A. 

      Revenues are recognized at the time an exchange transaction occurs

    • B. 

      Expenditures are recognized as the cost of an asset expires or is used up in providing governmental services

    • C. 

      Revenues are recognized when current financial resources become measurable and available to pay current-period obligations

    • D. 

      Expenses are recognized when an obligation occurs for costs incurred in providing services

  • 9. 
    Financial information about an internal service fund should be reported in the proprietary fund financial statements and the:
    • A. 

      Governmental Activities column of the government-wide financial statements

    • B. 

      Business-type Activities column of the government-wide financial statements

    • C. 

      Either A or B, depending on whether the internal service fund predominantly serves governmental activities or business-type activites

    • D. 

      None of the above

  • 10. 
    A certain city reports the following year-end total assets: General Fund                                                                             $18,400,000 Library Fund (a special revenue fund)                                       2,900,000 Debt Service Fund                                                                         2,600,000 Total governmental funds                                                          26,300,000      Total governmental and enterprise funds combined           51,250,000 Based on this information, which funds should be reported as major funds?  
    • A. 

      General Fund only

    • B. 

      General Fund and Library Fund

    • C. 

      General Fund and Debt Service Fund

    • D. 

      All three funds should be reported as major funds

  • 11. 
    In which of the following funds would it not be appropriate to record depreciation expense?
    • A. 

      Special revenue fund

    • B. 

      Enterprise fund.

    • C. 

      Internal service fund.

    • D. 

      Pension trust fund.

  • 12. 
    Which of the following is not a characteristic of a fund as described by GASB standards?
    • A. 

      An accounting entity.

    • B. 

      A fiscal entity.

    • C. 

      A segregated quantity of cash and other financial resources on deposit with a designated trustee.

    • D. 

      A self-balancing set of accounts.

  • 13. 
    Under the modified accrual basis of accounting, revenues should be recognized when:
    • A. 

      Earned.

    • B. 

      Collected in cash.

    • C. 

      Authorized by the budget ordinance.

    • D. 

      Measurable and available.

  • 14. 
    Which of the following funds are governmental funds?
    • A. 

      General fund, special revenue funds, capital projects funds, debt service funds, and private-purpose trust funds.

    • B. 

      General fund, special revenue funds, and private-purpose trust funds.

    • C. 

      General fund, special revenue funds, capital projects funds, debt service funds, and permanent funds.

    • D. 

      General fund, special revenue funds, capital projects funds, debt service funds, and internal service funds.

  • 15. 
    Which of the following funds would be most appropriate for accounting for an activity that provides goods or services to the public for a fee that is intended to make the activity self-supporting?
    • A. 

      Investment trust fund.

    • B. 

      Enterprise fund.

    • C. 

      Internal service fund.

    • D. 

      Special revenue fund.

  • 16. 
    In accounting for state and local governments, the modified accrual basis is required for:
    • A. 

      Proprietary and fiduciary funds.

    • B. 

      Governmental funds only.

    • C. 

       Proprietary funds only.

    • D. 

      All funds.

  • 17. 
    Reporting fund financial information in separate columns for each major fund and aggregate information for non-major funds:
    • A. 

      Means that only those funds that meet the GASB's 10% and 5% rules are reported in separate columns.

    • B. 

      Is optional under GAAP, but is generally required by state laws for governments.

    • C. 

      Is the same manner of reporting used by business organizations.

    • D. 

      Is required by GAAP for state and local governments.

  • 18. 
    Which of the following must be reported as a major fund?
    • A. 

      The General Fund.

    • B. 

      A fund having total assets, liabilities, revenues, or expenditures/expenses equaling at least 10% of the total governmental or enterprise fund amount for the same element (assets, liabilities, and so forth), as applicable, and at least 5% of the combined governmental and enterprise fund total amount for the same element.

    • C. 

      Both A and B above.

    • D. 

      Neither A nor B above.

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