Course

Test

Government and Not-for-Profit

Week 3 Quiz

Instructions This quiz consist of 30 multiple choice questions. The first 15

questions cover the material in Chapter 2. The second 15
questions cover the material in Chapter 3. Be sure you are
in the correct Chapter when you take the quiz.

Question 1
4 out of 4 points

To fulfill the printing needs of its various departments and agencies, the City has
established a Central Print Shop which bills the various departments and
agencies of the city for printing services rendered. The Central Print Shop
should be accounted for in which of the following funds.
Answer
Selected Answer:
Internal service fund.
Correct Answer:
Internal service fund.

Question 2
4 out of 4 points

The City of San Jose built a new city hall and financed construction by issuing
bonds due in installments over the next 30 years. The bond principal and
interest will be paid by a special tax levied on property in the City. The money
received from this special tax should be accounted for in which of the following
funds?
Answer
Selected Answer:
Debt service fund.

Correct Answer:
Debt service fund.

Question 3
4 out of 4 points

Basis of accounting determines which of the following?

Answer
Selected Answer:
When transactions and events are recognized.
Correct Answer:
When transactions and events are recognized.

Question 4
4 out of 4 points

Which of the following liabilities would NOT be found in the fund balance sheet
of the General Fund of the City of Marmaduke?
Answer
Selected Answer:
Bonds payable, due in 5 years.
Correct Answer:
Bonds payable, due in 5 years.

Question 5
4 out of 4 points

Which of the following accounts would you least expect to see in a debt service
fund?
Answer
Selected Answer:
Outstanding balance of the debt being serviced.
Correct Answer:
Outstanding balance of the debt being serviced.

Question 6
4 out of 4 points

When a governmental entity adopts a basis of accounting other than full accrual
and a measurement focus that excludes long-lived assets and liabilities in its
governmental fund types:
Answer
Selected
Answer:

Correct
Answer:

It has recorded transactions in accordance with standards for

presentation in the fund financial statement required by the new
GASB reporting model.
It has recorded transactions in accordance with standards for
presentation in the fund financial statement required by the new
GASB reporting model.

Question 7
4 out of 4 points

For which of the following entities is fund accounting mandated?

Answer
Selected Answer:
City of New York.
Correct Answer:
City of New York.

Question 8
4 out of 4 points

Which of the following funds is a governmental fund?

Answer
Selected Answer:
Debt service fund.
Correct Answer:
Debt service fund.

Question 9
4 out of 4 points

What is the primary reason that governmental entities use fund accounting?
Answer
Selected
Answer:
Correct
Answer:

Fund accounting promotes control and accountability over

restricted resources.
Fund accounting promotes control and accountability over
restricted resources.

Question 10
4 out of 4 points

Which of the following assets would NOT be found in the fund balance sheet of
the General Fund of the City of Harrison?
Answer
Selected Answer:
Capital assets.
Correct Answer:
Capital assets.

Question 11
4 out of 4 points

Which of the following activities should the City of Highland account for in a
trust fund?
Answer
Selected
Answer:

General fund contributions received by the City pension

plan.

Correct Answer:
General fund contributions received by the City pension
plan.

Question 12
4 out of 4 points

A fund is
Answer
Selected Answer:
A separate fiscal and accounting entity.
Correct Answer:
A separate fiscal and accounting entity.

Question 13
4 out of 4 points

Which of the following is NOT a governmental fund?

Answer
Selected Answer:
City Utilities Enterprise Fund.
Correct Answer:
City Utilities Enterprise Fund.

Question 14
0 out of 4 points

A city receives a donation from a citizen who specifies that the principal must
be invested and the earnings must be used to support operations of a city-owned
recreational facility. The principal of this gift should be accounted for in which
of the following funds?
Answer
Selected Answer:
Special revenue fund.
Correct Answer:
Permanent fund.

Question 15

4 out of 4 points

Riverside Golf Course is a City-owned golf course that collects greens fees in
amounts sufficient to cover its expenses. Riverside Golf Course should be
accounted for in which of the following funds?
Answer
Selected Answer:
Enterprise fund.
Correct Answer:
Enterprise fund.

Question 16
4 out of 4 points

Which of the following would NOT be found in the Statement of Net Assets of
Teton City?
Answer
Selected Answer:
Receivable from special revenue fund.
Correct Answer:
Receivable from special revenue fund.

Question 17
4 out of 4 points

Under the new GASB reporting model for governmental entities, the entity-wide
balance sheet will display which of the following?
Answer
Selected Answer:
Assets, Liabilities, and Net Assets.
Correct Answer:
Assets, Liabilities, and Net Assets.

Question 18
0 out of 4 points

In the fund financial statements, the statements for the governmental funds
should be prepared using
Answer
Selected Answer:
the full accrual basis.
Correct Answer:
the modified accrual basis.

Question 19
4 out of 4 points

In the fund financial statements, the statements for the fiduciary funds should be
prepared using
Answer
Selected Answer:
the full accrual basis.
Correct Answer:
the full accrual basis.

Question 20
0 out of 4 points

The focus of the Statement of Activities of the city of West Hills is on which of
the following?
Answer
Selected Answer:
Determining the total revenues by function.
Correct Answer:
Determining the net cost of functions.

Question 21
4 out of 4 points

In addition to government-wide statements, GASB Statement No. 34 requires

fund financial statements be included in the governments basic set of financial
statements. The basic fund financial statements that should be included for
proprietary funds are
Answer
Selected
Answer:

Correct
Answer:

the Statement of Nets Assets, the Statement of Revenues,

Expenses, and Changes in Fund Net
Assets, and the
Statement of Cash Flows.
the Statement of Nets Assets, the Statement of Revenues,
Expenses, and Changes in Fund Net
Assets, and the
Statement of Cash Flows.

Question 22
4 out of 4 points

In addition to government-wide statements, GASB Statement No. 34 requires

fund financial statements be included in the governments basic set of financial
statements. The basic fund financial statements that should be included for
governmental funds are
Answer
Selected
Answer:
Correct
Answer:

the Balance Sheet and the Statement of Revenues,

Expenditures, and Changes in Fund Balance.
the Balance Sheet and the Statement of Revenues,
Expenditures, and Changes in Fund Balance.

Question 23
4 out of 4 points

The government-wide statements should be prepared using

Answer
Selected Answer:
the full accrual basis.
Correct Answer:

the full accrual basis.

Question 24
4 out of 4 points

__________ is the responsibility of governments to justify that their actions in

the current period have complied with public decisions concerning the raising
and spending of public moneys in the short term.
Answer
Selected Answer:
Fiscal accountability.
Correct Answer:
Fiscal accountability.

Question 25
4 out of 4 points

Per Statement No. 34, the GASB requires that governments present their budget
versus actual comparisons on a __________ and include a schedule that
reconciles the actual amounts per the budgetary comparison with the GAAP
amounts per the financial statements.
Answer
Selected Answer:
budgetary basis
Correct Answer:
budgetary basis

Question 26
4 out of 4 points

The aim of the government-wide statement of activities is to show

Answer
Selected
Answer:

the net cost of each of the governments main functions and

programs.

Correct
Answer:

the net cost of each of the governments main functions and

programs.

Question 27
4 out of 4 points

Which of the following is NOT considered Required Supplementary

Information (RSI)?
Answer
Selected Answer:
Notes to the financial statements.
Correct Answer:
Notes to the financial statements.

Question 28
0 out of 4 points

Under the new GASB reporting model for governmental entities, which of the
following is required?
Answer
Selected
Answer:

Correct
Answer:

Question 29

Two sets of financial statements, one exactly like the pre-GASB

#34 reporting requirements using the current financial resources
measurement focus and modified accrual basis of accounting and
one that combines all governmental activities in one column and
all business-type activities in another column using the full accrual
basis of accounting for both columns.
Two sets of financial statements, one similar to the pre-GASB #34
reporting requirements using the current financial resources
measurement focus and modified accrual basis of accounting and
one that combines all governmental activities in one column and
all business-type activities in another column using the full accrual
basis of accounting for both columns.

4 out of 4 points

How many government-wide statements is a municipality required to prepare?

Answer
Selected Answer:
Two.
Correct Answer:
Two.

Question 30
4 out of 4 points

Which of the following would NOT be found in the business-type activity

column of the government-wide Statement of Net Assets of the City of
Smithville?
Answer
Selected Answer:
Receivable from general fund.
Correct Answer:
Receivable from general fund.
Saturday, October 22, 2011 4:43:36 PM EDT