Homework answers / question archive / Governmental Accounting Chapter 1 Quiz Questions: What are the components that are included in the minimum requirements for general purpose external financial reporting? You are trying to decide if an entity you are reviewing is a government or a not-for-profit

Governmental Accounting Chapter 1 Quiz Questions: What are the components that are included in the minimum requirements for general purpose external financial reporting? You are trying to decide if an entity you are reviewing is a government or a not-for-profit

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Governmental Accounting

Chapter 1 Quiz Questions:

1. What are the components that are included in the minimum requirements for general purpose external financial reporting?
2. You are trying to decide if an entity you are reviewing is a government or a not-for-profit. Which of the following would indicate it is a government rather than a not-for-profit?
3. Which of the following statements regarding primary sources of accounting and financial reporting standards is false?
4. Recognizing revenues when measurable and available for paying current obligations and expenditures when incurred describes which basis of accounting?
5. Which of the following is not a required section of a federal agency or department’s performance and accountability report (PAR)?
6. James Black is reviewing his city’s financial reporting because he wants to run for the city council. He is concerned that the city is not using its resources effectively. James is primarily interested in…
7. Which of the following is identified by the GASB as the “cornerstone” of all financial reporting in government?
8. The Financial Accounting Standards Board has the responsibility for setting accounting and financial reporting standards for…
9. Which of the following sections is not considered a part of a federal agency’s performance and accountability report?
10. Which of the following is not an objective of financial reporting by state and local governments?
11. Which of the following statements is prepared by all not-for-profit organizations?
12. The basic financial statements of a not-for-profit (NFP) include all of the following except…
13. A statistical section should be included in…
14. Which of the following is a special purpose government?
15. 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…
16. On what should the governmental fund financial statements report?
17. What are the components that are included in the minimum requirements for general purpose external financial reporting?

Government-wide Financial Statement                Fund Financial Statements

A   No                                                                               Yes

B   Yes                                                                               No

C   Yes                                                                              Yes

D   No                                                                               No

 

Chapter 1 Bonus Quiz Questions:

1. Which of the following is a net asset category reported by not-for-profit entities?
2. Which of the following groups is considered a primary user of a state or local government’s general-purpose external financial statements?
3. Which of the following would typically not be included in the introductory section of a comprehensive annual financial report?
4. A comprehensive annual financial report (CAFR) prepared in conformity with the GASB recommendations should include which of the following sections?
5. Which of the following should be included in the financial section of a comprehensive annual financial report?
6. The FASAB’s Statement of Accounting and Reporting Concepts Statement No. 1 identifies four objectives of federal financial reporting. The requirement to be publically accountable for laws and regulations related to spending tax revenues relates to which of the four objectives?
7. The concept of interperiod equity refers to whether…
8. The body that has been established to recommend accounting and financial reporting standards for the federal government is the…
9. Which of the following is identified by the FASAB as the foundation for federal financial reporting?
10. One of the minimum requirements for general purpose external financial reporting by governments is…
11. Which of the following standard-setting bodies requires a management’s discussion and analysis as a part of the financial report?
12. Which of the following is not classified as a support activity reported by not-for-profit entities?
13. Which of the following would be included in a properly prepared comprehensive annual financial report (CAFR), but not in the minimum requirements for general purpose financial reporting specified by GASB standards?
14. Which of the following organizations issue standards that focus on both internal and external financial reporting?
15. The primary reason that not-for-profit (NFP) organizations should report expenses incurred for program purposes separately from those for supporting services such as management and general and fund-raising that…
16. The FASB requires that a statement showing the relationship of functional expenses to natural classifications of expense be prepared by which of the following entities?
17. Which of the following statements is true for both governmental organizations and for-profit organizations?
18. The Governmental Accounting Standards Board is assigned responsibility for setting accounting and financial reporting standards for…
19. On what do the government-wide financial statements report?

Chapter 2 Quiz Questions:

1. Which of the following is a fiduciary fund?
2. Which of the following is a primary objective of financial reporting by state and local governments?
3. Separate reporting for major funds is needed because…
4. Which of the following funds would be used to account for an activity that provides centralized purchasing and sales of goods or services to other departments or agencies of the government on a cost-reimbursement basis?
5. In accounting for state and local governments the modified accrual basis is required for…
6. The GASB requires budget-to-actual comparison information for which of the following?
7. Which of the following funds should be used if resources provided by a federal grant must be segregated and used for counseling of youthful offenders?
8. A major governmental fund is one that has one or more elements (e.g., assets, liabilities, revenues, or expenditures) that is at least…
9. How does the GASB recommend governments report budgetary information?
10. Which of the following funds is a governmental fund-type?
11. Which of the following funds are governmental funds?
12. Which of the following would be reported as a nonspendable fund balance?
13. Where should a deferred inflow of resources be reported on the financial statements?
14. According to the GASB definition, which of the following represents an inflow of resources?
15. Which of the following is not a characteristic of a fund as defined by GASB standards?
16. Which of the following is true regarding financial reporting for internal service funds?
17. Use the following information to determine whether the Development Special Revenue and the Debt Service Funds should be reported as major funds based on asset amounts provided.

Development Special Revenue Fund Assets $ 740,000

Debt Service Fund Assets $ 150,000

Total Governmental Fund Assets $ 7,500,000

Total Governmental Fund and Enterprise Fund Assets $ 8,750,000

 

18. The GASB recommends that budget-to-actual comparison information be provided as which of the following?
19. Which of the following activities is considered a core government activity?
20. Which of the following funds are proprietary funds?
21. Which of the following funds would be most appropriate when accounting for an accounting activity that provides goods or services to the public for a fee that is intended to make the activity self-supporting?
22. Which of the following is not one of the methods recommended by the GASB Concepts Statement 3 for communicating information to external users of government financial reports?
23. The GASB concept statements indicate that in certain instances a remeasured value for an asset or liability should be reported on the financial statements. Which of the following is not one of the methods recommended by the GASB for remeasured amounts?
24. The measurement focus and basis of accounting that should be used for the governmental fund financial statements are?

Measurement Focus                           Basis of Accounting

A) Current financial resources                        Modified accrual

B) Current financial resources                        Accrual

C) Economic Resources                                  Modified accrual

D) Economic Resources                                  Accrual

 

25. The basis of accounting that should be used in preparing fund financial statements is:

Governmental funds   Proprietary funds                    Fiduciary funds

A) Modified accrual   Accrual                                    Modified accrual

B) Modified accrual    Modified accrual                     Modified accrual

C) Modified accrual    Accrual                                    Accrual

D) Accrual                              Accrual                                    Accrual

 

26. Under GASB standards which of the following funds can report a positive amount for unassigned fund balance?
27. Under the modified accrual basis of accounting…
28. Which of the following sets of elements are common to both governments’ financial statements of for-profit financial statements?
29. Which of the following governmental funds must be reported as a major fund?
30. Which of the following amounts that are identified at the end of the fiscal year would be classified as a restricted fund balance?

Chapter 2 Bonus Quiz Questions:

1. Capital assets used by departments accounted for by the General Fund of a governmental unit should be accounted for in…
2. Under the modified accrual basis of accounting, revenues should be recognized when…
3. Which of the following statements is true regarding the basic financial statements of a state law or local government?
4. How should an item of information that helps explain the riskiness of the investments account reported on the balance sheet be communicated in the financial report?
5. Which of the following statements is true regarding the definition of a fund?
6. According to the GASB, information that is essential and useful to placing information in the correct context should be reported as which of the following?
7. The measurement focus and basis of accounting that are most unlike those used by business entities are those used by…
8. A certain city reports the following year-end total assets:

General Fund $18,400,000.00

 

Library Fund (a special revenue fund) $2,900,000.00

Debt Service Fund $2,600,000.00

Total governmental funds $26,300,000.00

Total governmental and enterprise funds combined $51,250,000.00

 

Based on this information, which funds should be reported as major funds?

 

9. Which of the following is not an information characteristic that the GASB identifies as important in government financial reports?
10. Financial information about an internal service fund should be reported in the proprietary fund financial statements and the…a.) Governmental Activity column of the government-wide financial statements. b.) Business-type Activities column of the government-wide financial statements.
11. Which of the following fund(s) will generally be the only fund(s) that can report a positive unassigned fund balance?
12. Financial resources set aside to pay principal and interest on general long-term debt may be accounted for in which of the following fund types?
13. A city received resources that the state indicates can only be used for public works projects, such as road construction. Assuming the resources have not been expended by year end, how would the resources the city received be shown in the city's fund balances?
14. Which of the following is not one of the seven elements defined by the GASB concept statements?
15. Capital assets used by an enterprise fund should be accounted for in the…
16. Separate reporting for major funds is needed because…
17. Which of the following funds would record depreciation of capital assets?

 

 

Chapter 3 Quiz Questions:

 

1. Which of the following items would not appear in a statement of revenues, expenditures, and changes in fund balances prepared for a governmental fund?
2. The expenditure classification "Current Expenditures" is an example of which of the following types of classifications?
3. One characteristic that distinguishes other financing sources from revenues is that other financing sources…
4. Under the modified accrual basis of accounting used by the General Fund, financial resources are considered available if the revenue or other financing source is expected to be collected…
5. A statement of revenues, expenditures, and changes in fund balances—budget and actual is…
6. When the budget for the General Fund is recorded, the required journal entry will include…
7. Before placing a purchase order, a department should check that available appropriations are sufficient to cover the cost of the item being ordered.  This type of budgetary control is achieved by reviewing…
8. Which of the following accounts of a government is credited when a purchase order is approved?
9. Which of the following accounts is a budgetary account of a governmental fund?
10. The expenditure classification "City Attorney" is an example of which of the following types of classification?
11. An internal allocation of funds on a periodic basis, which is often used to regulate the use of appropriations over a budgetary period, is called…
12. Spruce City’s finance department recorded the recently adopted General Fund budget at the beginning of the current fiscal year. The budget approved estimated revenues of $1,100,000 and appropriations of $1,000,000 which of the following is the correct journal entry to record the budget?
13. The County Commission of Canyon County adopted its General Fund budget for the year ending June 30, comprising estimated revenues of $13,200,000 and appropriations of $12,900,000. The budgeted excess of estimated revenues over appropriations will be recorded as…
14. The Appropriations account of a governmental fund is credited when…
15. The process by which a legal valuation is placed on taxable property is called…
16. The city amended its budget to increase expected grant revenues by $500,000 and increase expected culture and recreation expenditures by $500,000. Which of the following statements concerning the budget amendment journal entry is correct?
17. Which of the following fund types uses the current financial resources measurement focus and modified accrual basis of accounting?
18. If a state law requires that local governments prepare General Fund and special revenue fund budgets on a basis that differs from the basis of accounting required by generally accepted accounting principles (GAAP)…
19. Which of the following accounts is not closed at the end of the reporting period?

Chapter 3 Bonus Quiz Questions:

1. Which of the following terms refers to an actual cost rather than an estimate?
2. Which of the following statements is true for other financing uses but is not true for expenditures?
3. Which of the following best describes the recommended format for the government-wide statement of activity?
4. If supplies that were ordered by a department financed by the General Fund are received at an actual price that is less than the estimated price on the purchase order, the department's available balance of appropriations for supplies will be…
5. Which of the following is not a category of program revenue reported on the statement of activities at the government-wide level?
6. The Estimated Revenues control account of a government is credited when:

 

	Budgetary accounts are closed	Revenues are recorded
A)	Yes	No
B)	No	No
C)	No	Yes
D)	Yes	Yes

 

7. When supplies ordered for use in an activity accounted for in the General Fund are received at an actual price that is more than the estimated price on the purchase order, the Encumbrance account is…
8. A liability is recorded in governmental funds when…
9. When computers are ordered by the mayor's office, the purchase order should be recorded in the General Fund as a debit to…
10. When determining taxable property for the purpose of the property tax levy, which of the following would likely be excluded from the calculation?
11. Which of the following is an acceptable method of reporting depreciation expense for depreciable assets used by governmental activities?
12. The expenditure classification "Public Safety" is an example of which of the following types of classifications?
13. The account "Interfund Transfers In" would be classified in a General Fund statement of revenues, expenditures, and changes in fund balance as a(an)…
14. Which of the following will increase the fund balance of a government at the end of the fiscal year?
15. According to GASB standards, expenditures are classified by…
16. Which of the following best identifies when an encumbrance is recorded?
17. The county determined it needed to prepare a budget amendment to reflect a decrease in charges for services of $100,000 and an increase in public safety expenditures of $150,000. What will be the effect of these two adjustments on the Budgetary Fund Balance account?
18. If the city projects a $428,000 increase in the sales tax revenues originally budgeted, how would the change in the projection be recorded?

 

19. Which of the following would not appear on a governmental fund balance sheet?
20. Extraordinary items and special items are reported on the government-wide statement of activities...
21. Which of the following would always be classified as a general revenue?
22. The journal entry to record budgeted revenues will include…
23. Which of the following is correct concerning the presentation of the budgetary comparison schedule?
24. If it is in accordance with the government’s policies, which of the following budgetary accounts can remain open at the fiscal year-end?
25. Which of the following statements is not a true statement about expenses that are directly related to a government function or program?