Quiz 1 Chapter 1 Government Accounting

Quiz 1 Chapter 1 Question 1 of 10
10.0 Points 1.0 Points
Which organization has the authority to establish generally accepted accounting principles for state and local government entities? A. The Municipal Officers Finance Organization B. The Governmental Accounting Standards Board C. The National Council on Governmental Accounting D. The Financial Accounting Standards Board
Answer Key: B Question 2 of 10 1.0 Points
Which of the following statements best describes the reporting process for profit seeking and governmental entities? A. In profit-seeking enterprises the measurement focus is on the flow of all economic resources of the firm, whereas the focus for governmental funds is on current financial resources. B. In profit-seeking enterprises the measurement focus is on the flow of current financial resources, whereas the focus for government funds is on all economic resources. C. Both Profit-seeking enterprises and governmental entities have an objective to measure profitability. D. Both Profit-seeking enterprises and governmental entities use the accrual or cash basis of accounting to record and report transactions.
Answer Key: A Question 3 of 10 Which of the following funds are classified as proprietary funds? A. Debt service and capital projects funds. B. Enterprise and internal service funds. C. Agency and special revenue funds. D. Agency and pension trust funds. 1.0 Points
Answer Key: B Question 4 of 10 Which of the following funds are classified as governmental funds? A. The general and special revenue funds. 1.0 Points
B. Enterprise and agency funds. C. Internal service and debt service funds. D. Internal service and capital projects funds.
Answer Key: A Question 5 of 10 1.0 Points
Which of the financial statements described below is prepared by the general fund of a state or local government? A. A statement of cash flows. B. A statement of revenues, expenditures, and changes in fund balance. C. An income statement. D. A statement of revenues, expenses, and changes in retained earnings.
Answer Key: B Question 6 of 10 Under the modified accrual basis of accounting, revenue should be recognized when it is: A. measurable and available. B. measurable and earned. C. received in cash. D. available and earned.
1.0 Points
Answer Key: A Question 7 of 10 Which of the following funds should use the modified accrual basis of accounting? A. Private-purpose trust and agency funds. B. Debt service and private-purpose trust funds. C. Capital projects and special revenue funds. D. Internal service and enterprise funds. 1.0 Points
Answer Key: C
Question 8 of 10 Which of the following is a fiduciary fund? A. Enterprise B. Internal service C. Investment trust D. Permanent
1.0 Points
Answer Key: C Question 9 of 10 The FASAB has the authority to establish accounting and financial reporting standards for: A. Federal government B. Investor owned business C. Public not-for-profits D. State and local governments 1.0 Points
Answer Key: A Question 10 of 10 A permanent fund classified under governmental funds: A. Accounts for most of the basic services provided by the governmental unit. B. Accounts for financial resources intended for major capital projects. C. Accounts for services provided by one department of a government to another.
1.0 Points
D. Accounts for resources that are legally restricted so only earnings, not principal, may be expended, and for purposes to benefit the government and its citizenry.
Answer Key: D
Part 1 of 1 Question 1 of 10
10.0 Points 1.0 Points
An objective of the accounting system for a state or a local government is to make it possible both to present fairly the funds and activities of the government in conformity with generally accepted accounting principles and to demonstrate compliance with finance-related legal and contractual provisions.
True False
Answer Key: True Question 2 of 10 1.0 Points
Governments can, in part, demonstrate operational accountability by reporting proprietary and fiduciary fund financial information, as well as all government-wide financial information, using an economic resources measurement focus and the accrual basis of accounting. True False
Answer Key: True Question 3 of 10 The accounting system used by a state or local government must make it possible A. To prepare financial statements as required by the Financial Accounting Standards Board. B. To provide Web-based bond offering statements to investment firms. C. To present fairly the financial position and results of financial operations of the government as a whole, as well as fund financial activity in conformity with GAAP, and to demonstrate compliance with finance-related legal and contractual provisions. D. To prepare consolidated accrual basis statements for the government as a whole. 1.0 Points
Answer Key: C Question 4 of 10 Which of the following is not a characteristic of a fund as defined by GASB standards? A. A segregated quantity of cash and other financial resources on deposit with a designated trustee. B. An accounting entity. C. A fiscal entity. D. A self-balancing set of accounts. 1.0 Points
The accrual basis of accounting applicable to proprietary fund types requires that exchange revenues be recognized when A. Earned. B. Measurable and available. C. Collected in cash. D. Authorized by the budget ordinance.
Answer Key: A Question 6 of 10
1.0 Points
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? A. Principal and interest trust fund. B. Internal service fund. C. Debt service fund. D. Private-purpose trust fund.
Answer Key: C Question 7 of 10 Generally accepted accounting principles applicable to state and local governments require that A. Only governmental funds and proprietary funds should be provided. B. All categories of funds must be provided.
1.0 Points
C. Only those funds required by law, GASB standards, and sound financial administration should be provided. D. Only those funds required by law should be provided.
Answer Key: C Question 8 of 10 Budgetary comparison schedules presenting budgeted versus actual revenues and expenditures are A. Required by GAAP for the General Fund and major special revenue funds for which an annual budget has been legally adopted. B. Optional under GASB standards for all funds. C. Required by GAAP for internal management reports only; not permitted for external financial reporting. 1.0 Points
D. Required by GAAP for all governmental fund types.
Answer Key: A Question 9 of 10 Which of the following funds are governmental funds? A. General Fund, special revenue funds, debt service funds, capital projects funds, and permanent funds. B. General Fund, special revenue funds, private-purpose trust funds. C. General Fund, special revenue funds, capital projects funds, debt service funds, and private-purpose trust funds. D. General Fund, special revenue funds, capital projects funds, debt service funds, and internal service funds. 1.0 Points
Answer Key: A Question 10 of 10 Which of the following organizations should not be included as part of the governmental reporting entity? A. Organizations which are legally and fiscally independent of a primary government. B. Organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. C. Legally separate organizations for which the primary government is financially accountable. D. A primary government. 1.0 Points
Answer Key: A
A335/A508 Quiz 4 Chapter 3Return to Assessment List

Part 1 of 1 10.0 Points
Question 1 of 10
1.0 Points
An objective of the accounting system for a state or a local government is to make it possible both to present fairly the funds and activities of the government in conformity with generally accepted accounting principles and to demonstrate compliance with finance-related legal and contractual provisions. True False
Program revenues are distinguished from general revenues on the government-wide statement of activities under GASB standards. True False
Answer Key: True Question 3 of 10
1.0 Points
An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract. True False
"Available appropriation" is calculated as the difference between appropriations and the sum of expenditures and encumbrances. True False
Which of the following are reported in the functions/programs section of the statement of activities at the governmentwide level where they reduce the net expense of each function or program or produce a net revenue?
A. Program revenues. B. Extraordinary items. C. General revenues. D. Indirect revenues.
Under the modified accrual basis of accounting used by the General Fund, financial resources are considered available if they will be received in the current period or within A. The time after year-end defined by each individual government. B. 60 days after year-end. C. One year. D. 90 days after year-end.
Which of the following accounts of a government is credited when a purchase order is approved? A. Vouchers Payable. B. Encumbrances. C. Reserve for Encumbrances. D. Appropriations.
Answer Key: C
Question 8 of 10
1.0 Points
Which of the following is true regarding other financing sources and other financing uses? A. Both must be reported separately from revenues and expenditures in the statement of revenues, expenditures, and changes in fund balances. B. These terms are used to distinguish program revenues or expenses from general revenues or expenses. C. These terms are used for minor revenue or expenditure items that are peripheral to the government's mission. D. Other financing sources are equivalent to gains and other financing uses are equivalent to losses.
1.0 Points
The expenditure classification "Public Safety" is an example of which of the following types of classifications? A. Activity. B. Function. C. Object. D. Character.
Answer Key: B Question 10 of 10
1.0 Points
The account "Interfund Transfers In" would be classified in a General Fund statement of revenues, expenditures, and changes in fund balance as a(an) A. Other financing use. B. Revenue. C. Other financing source. D. Current liability.
Answer Key: C
A335/A508 Quiz 6 Chapter 5 Part 1 of 1 Question 1 of 10 10.0 Points 1.0 Points
If a capital projects fund starts construction of a building in one year and finishes it in a subsequent year an entry must be made in the governmental activities accounts until the building is completed, inspected, and accepted. True False
The net cost of demolishing a building on land purchased as a site for an addition to city hall should be debited to Buildings in the governmental activities accounts. True False
Answer Key: False Question 3 of 10 1.0 Points
Proceeds of tax-supported debt issued for the construction or acquisition of capital assets are recognized by the capital projects fund as "other financing sources" and as a liability in the governmental activities journal. True False
The city of Oak Park constructed a new storage facility using the city's own public works employees. Construction costs were incurred in the amount of $900,000, plus $25,000 in interest on short-term notes used to finance construction. What amount should be capitalized as a capital asset?
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A. $0. B. $900,000. C. $925,000. D. $875,000.
A capital lease was used to acquire equipment used by the Police Department, part of the general government. How should the lease be recorded in the governmental activities accounts at the inception of the lease? A. Fair value. B. Lower of fair value or present value of minimum lease payments. C. Present value of minimum lease payments. D. Leased assets are not recorded in the governmental activities accounts.
Which of the following is a true statement about governments that issue tax-supported debt to finance capital projects? A. Most states do not permit bonds to be issued at a premium. B. Premiums on bonds issued is recorded as an other financing source of the debt service fund. C. Premiums on bonds issued must be amortized in the debt service fund. D. Accrued interest is recorded as an other financing source of the capital projects fund.
Answer Key: B Question 7 of 10 Premiums received on tax-supported bonds are generally transferred to what fund? A. General. B. Internal service fund. C. Debt service. D. Special revenue. 1.0 Points
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Answer Key: C Question 8 of 10 For which of the following assets can the "modified approach" be elected in lieu of depreciation? A. Eligible infrastructure assets. B. Buildings and equipment. C. All capital assets. D. All general capital assets.
1.0 Points
Answer Key: A Question 9 of 10 At the government-wide level, net assets related to capital assets should be reported as A. Net equity in capital assets. B. Invested in capital assets, net of related debt. C. Restricted or unrestricted financial assets, as appropriate. D. General capital assets, preceding general long-term liabilities.
1.0 Points
Answer Key: B Question 10 of 10 Which of the following statements is correct concerning interest expenditures incurred during the period of construction of capital projects? A. Interest expenditures may not be capitalized as part of the cost of general capital assets reported in governmental activities. B. Interest expenditures may be capitalized as part of the cost of general capital assets reported in the governmental activities accounts at the government-wide level. C. Interest expenditures must be capitalized as part of the cost of general capital assets reported in the capital projects fund. D. Interest expenditures may optionally be capitalized as part of the cost of general capital assets reported in the capital projects fund. 1.0 Points
Answer Key: A
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A335/A508 Quiz 7 Chapter 6

Return to Assessment List
376678 A335/A508 Quiz
Part 1 of 1 -
10.0 Points
Question 1 of 10
1.0 Points
Which of the following is not properly recorded in the governmental activities accounts? A. The long-term portion of judgments and claims. B. Obligations under capital leases used to finance general capital assets. C. Revenue bonds issued by an enterprise fund. D. Tax-supported general obligation bonds.
Answer Key: C Question 2 of 10 1.0 Points
General obligation bonds issued for the benefit of enterprise funds, with the intent of paying bond principal and interest from revenues of the enterprise fund, should be reported as a liability in the balance sheet of the A. Enterprise fund. B. Governmental activities. C. Both the enterprise fund and the governmental activities accounts. D. Enterprise fund and a note to the financial statements explaining the contingent liability of the general government if enterprise funds are insufficient to pay principal and interest.
Answer Key: D Question 3 of 10 1.0 Points
A debt service fund is a
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A. Nonexpendable fund. B. Proprietary fund. C. Fiduciary fund. D. Governmental fund.
Interest expenditures on bonds payable should be recorded in a debt service fund A. When the interest is legally payable. B. When bonds are issued. C. At the end of the fiscal period if the interest due date does not coincide with the end of the fiscal period. D. When the interest is paid.
1.0 Points
Which of the following would result in the amortization of a bond discount or premium? A. Bonds are issued: No; Bonds are held as investments: No B. Bonds are issued: No; Bonds are held as investments: Yes C. Bonds are issued: Yes; Bonds are held as investments: No D. Bonds are issued: Yes; Bonds are held as investments: Yes
Answer Key: C Question 6 of 10
1.0 Points
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Valencia Village issued the following during the year ended June 30, 2011: (1) $600,000 in bonds for the installation of street lights, to be assessed against properties benefited, but secondarily backed by the village; (2) $800,000 in bonds for construction of a Parks and Recreation Department public golf course to be paid from pledged fees collected from golf course users. How much should be accounted for through debt service funds for payments of principal over the life of the bonds? A. $0. B. $600,000. C. $800,000. D. $1,400,000.
The liability for general obligation bonds should be recorded in the A. Debt service fund. B. Capital projects fund. C. Governmental activities journal. D. General Fund.
If a government issues debt to finance capital acquisition by another government and the proceeds of the debt are a short time later delivered to the intended beneficiary government, how is the related long-term debt reflected in a governmental fund of the issuing government? A. Revenue and expenditure. B. Other financing source and other financing use. C. Other financing source and expenditure.
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D. It is not displayed on the face of the financial statements; however, it is disclosed in the notes to the financial statements.
The city of Sparr's fiscal year ends on December 31. On July 1, 2011, the city issued $1,000,000 of 6%, 10-year term bonds with semi-annual interest payments due on July 1 and January 1 each year, beginning on January 1, 2012. What amount of expenditures should the city recognize in its debt service fund for the years 2011 and 2012? A. $30,000 in 2011; $60,000 in 2012. B. $60,000 in 2011; $60,000 in 2012. C. $3,000 in 2011; $6,000 in 2012. D. $0 in 2011; $60,000 in 2012.
Which of the following is a true statement regarding in-substance defeasance of bonds? A. The government must pledge to transfer amounts to an escrow agent prior to the due date for each interest and principal payment for the debt being defeased. B. The government must agree to maintain sufficient unrestricted cash and investments in its governmental funds to cover all interest and principal payments for the debt being defeased. C. The government must agree to maintain sufficient cash and investment balances in its debt service fund to cover all interest and principal payments for the debt being defeased. D. The government must place cash or other assets in an irrevocable trust sufficient to pay all future interest and principal payments for the debt being defeased.
Answer Key: D

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376696
A335/A508 Quiz
Part 1 of 1 -
10.0 Points
Question 1 of 10
1.0 Points
Which of the following may properly be reported as a component of net assets in the proprietary fund statement of net assets? A. Contributed capital. B. Designated equity. C. Retained earnings. D. Restricted net assets.
Internal service funds should be used only if A. The reporting government provides services to other departments at a charge that covers the full cost of operations. B. The reporting government provides services primarily to other departments of the same government. C. The reporting government is the predominant participant in the activity. D. The reporting government provides services primarily to external participants.
Which of the following is a difference between enterprise funds and internal service funds? A. The customers who primarily benefit from the fund's service.
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B. The measurement focus on economic resources for enterprise funds and current financial resources for internal service funds. C. The number of basic financial statements required. D. The use of cost accounting by enterprise funds but not internal service funds.
GASB accounting and financial reporting standards for risk financing activities provide that an internal service fund should recognize claims expense and a related liability when a claim has been asserted and A. It is probable that a loss has been incurred and the amount can be reasonably estimated. B. It is reasonably possible that a loss has been incurred and the amount can be reasonably estimated. C. A municipal court has awarded a judgment to a claimant fund (e.g., the General Fund). D. A loss has been incurred, but the amount cannot be reasonably estimated.
Which of the following is not a typical means of dissolving an internal service fund that a city no longer needs or wants? A. Transfer the fund's assets to a not-for-profit organization that provides charitable services in the community. B. Conversion of the fund's noncash assets to cash and distribution of the cash to another fund or funds. C. Distribute the fund's assets in kind to another fund or funds that will not continue the same or similar operating activities. D. Transfer the fund's assets to another fund that will continue the same or similar operating activities.
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Which of the following account balances would only be reported if a city-owned utility followed regulatory accounting principles? A. Utility Plant Acquisition Adjustments. B. Depreciation expense. C. Pumping expense. D. Restricted AssetsCash.
1.0 Points
Which of the following is not a true statement about the Allowance for Funds Used During Construction (AFUDC)? A. AFUDC may be credited for an imputed amount of interest on the utility's own funds used for construction. B. AFUDC may have either a debt component or an equity component. C. The amount credited to AFUDC may exceed the amount of interest paid during the period on bonds issued for construction. D. AFUDC may include the total amount of borrowing during construction.
A municipal solid waste landfill (MSWLF) accounted for by an enterprise fund should recognize an expense and liability for the year in the amount of A. A portion of the estimated total current costs for closure and postclosure of the MSWLF, determined at the time the landfill is placed into initial operation, equal to the ratio of landfill used during the year to its total capacity. B. A portion of the estimated total current costs for closure and postclosure of the MSWLF, as reevaluated at the end of the fiscal year, equal to the ratio of landfill used during the year to its total capacity. C. The estimated total current costs for closure and postclosure of the MSWLF as reevaluated at the end of each fiscal year divided by the remaining estimated number of years the landfill will be operated. D. The estimated total current costs for closure and postclosure of the MSWLF determined at the time the landfill is placed into initial operation divided by the estimated number of years the landfill will be operated.
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1.0 Points
Under utility regulatory accounting principles (RAP), the account "Utility Plant Acquisition Adjustment" reflects A. The difference between the fair market value of the utility plant and the amount paid for it, less accumulated depreciation. B. The difference between the amount paid for utility plant and the amount originally paid by the utility that first placed the plant into public service, less accumulated depreciation. C. The difference between the amount paid for the utility plant less its current replacement cost. D. The difference between the amount paid for the utility plant less the fair market value of its tangible plant assets.
1.0 Points
Which of the following accounts would least likely be found in the general ledger of an internal service fund? A. Expenditures. B. Machinery and equipment. C. Cash. D. Billings to Departments.
Answer Key: A

376781 A335/A508 Quiz
Part 1 of 1 -
10.0 Points
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Question 1 of 10
1.0 Points
An audit of a government's financial statements, conducted in accordance with generally accepted government auditing standards (GAGAS), includes A. An examination of the financial statements and underlying records for conformance with generally accepted accounting principles (GAAP). B. Tests for compliance with laws and regulations. C. An examination of the financial statements and underlying records for conformance with GAAP and tests for compliance with laws and regulations. D. A determination of efficiency and effectiveness.
Government Auditing Standards (GAS) issued by the U.S. Comptroller General, also referred to as generally accepted government auditing standards (GAGAS) apply to all of the following audits, except A. Financial statement audits of federal organizations made by the Government Accountability Office. B. Financial audits of not-for-profit organizations that do not receive or expend federal financial awards. C. Financial audits of federal grants made by independent CPAs. D. Financial statement audits of federal programs made by state auditors.
The single audit requirement applies to A. Audits to determine efficiency and economy. B. All audits of state and local government reporting entities. C. Audits following the Single Audit Act of 1984 (with 1996 Amendments) and the revised OMB Circular A-133.
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D. Financial and performance audits, and attestation engagements.
A significant deficiency of such magnitude that internal control components do not reduce the risk of detection or prevention of material misstatement to an acceptably low level is called a(an) A. Unacceptable reportable condition. B. Audit alert item. C. Material weakness and significant deficiency. D. System design deficiency.
1.0 Points
Attestation engagements include A. Services that provide various levels of assurance on such matters as internal control, compliance, MD&A presentation, and reliability of performance measures. B. Examining whether the entity's financial statements fairly present in conformity with GAAP. C. Assessment of the extent to which entity programs met their objectives. D. Reviews of interim financial information.
1.0 Points
All of the following reports are included in the reporting package resulting from the single audit except A. Summary schedule of prior audit findings.
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B. Report on efficiency and effectiveness. C. Corrective action plan. D. Financial statements and schedule of expenditures of federal awards.
Generally accepted government auditing standards (GAGAS) A. Are set forth in the "Federal Government Red Book." B. Establish standard wording of auditor's reports on governmental financial statements. C. Establish the same scope as GAAS, but use wording appropriate to governmental entities instead of business organizations. D. Establish more standards that are broader in scope than those found in GAAS.
Typical objectives of a performance audit include A. Judging the appropriateness of an entity's program goals. B. Assessing effectiveness and results, economy and efficiency, and internal controls and compliance with laws and regulations. C. Determining whether financial statements fairly present the entity's operational results. D. Determining whether financial statements fairly present in conformity with GAAP.
1.0 Points
Which of the following statements concerning the Single Audit Act of 1984 (with 1996 Amendments) is correct?
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A. Only those entities receiving over $500,000 a year in federal financial assistance are required to have a single audit. B. Those entities expending under $500,000 a year in federal awards are exempt from single audit requirements. C. The Single Audit Act only applies if an entity has high risk programs. D. The single audit is optional for all entities receiving federal awards.
1.0 Points
An unqualified audit opinion rendered on a governmental unit's general purpose external financial statements means those statements A. Have been audited by an auditor with limited qualifications. B. Have been certified as free from error. C. Present fairly in conformity with GAAP. D. Contain departures from GAAP that may make them misleading.
Answer Key: C

377716 A335/A508 Quiz
Part 1 of 1 -
10.0 Points
Question 1 of 10
1.0 Points
The objectives of federal financial reporting are to assist report users in evaluating budgetary integrity, operating performance, stewardship, and adequacy of systems and controls. True False
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True False
Unexpended appropriations is the component of net position in a federal agency balance sheet that represents the amount of appropriations still available for obligation, or which has been obligated but not yet expended. True False True False
Cumulative results of operations is the component of net position in a federal agency balance sheet that represents the amount of appropriations still available for obligation, or which has been obligated but not yet expended. True False True False
Answer Key: False Question 4 of 10
1.0 Points
The "net position" of a federal agency may include all of the following components, except. A. Cumulative results of operations. B. Appropriations represented by undelivered orders and unobligated balances.
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C. Fund balance with U.S. Treasury. D. Unexpended appropriations.
FASAB has identified four major user groups of federal financial reports, they are A. Congress, executives, citizens, and bond rating agencies. B. Congress, program managers, bond rating agencies, and political parties. C. Congress, program managers, foreign governments, and citizens. D. Congress, executives, program managers, and citizens.
Answer Key: D Question 6 of 10
1.0 Points
In federal government accounting, recording the estimated amount of equipment prior to actually placing an order or entering into a contract is called a(an) A. Apportionment. B. Allotment. C. Commitment. D. Obligation.
Which of the following accounts used in state and local government accounting is most like the federal budgetary account "Undelivered Orders"?
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A. Reserve for Encumbrance. B. Expenditures. C. Appropriations. D. Encumbrances.
Which of the following is an accurate list of the three perspectives from which the federal government can be viewed, as described in SFFAS No. 2 "Entity and Display?" A. Budget, program, and line-item. B. Function, department, and program. C. Organizational, budget, and program. D. Fund, activity, and account.
1.0 Points
Which of the following describes the usual flow of budgetary authority through the budgetary accounts of a federal agency? A. Apportionment, allotment, appropriation, commitment, obligation, expended appropriation. B. Allotment, commitment, obligation, expended appropriation, apportionment. C. Commitment, obligation, appropriation, apportionment, allotment, expended appropriation. D. Appropriation, apportionment, allotment, commitment, obligation, expended appropriation.
Answer Key: D
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Question 10 of 10
1.0 Points
One of the purposes of the Federal Financial Management Improvement Act of 1996 was to A. Establish generally accepted federal accounting principles. B. Improve the effectiveness of programs receiving federal funds. C. Establish a requirement that the financial statements of the federal government as a whole be audited. D. Rebuild the credibility and restore public confidence in the federal government.
Answer Key: D
A335/A508 Quiz 12/Chapter 13

377932 A335/A508 Quiz
Part 1 of 1 -
10.0 Points
Question 1 of 10
1.0 Points
Some of the budgeting approaches governments have experimented with as alternatives to line-item, incremental budgeting include performance budgeting, program budgeting, the planning-programming-budgeting system, and zero-based budgeting. True False True False
A generally unallowable cost may be allowable under certain circumstances. True
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False
Service efforts and accomplishments (SEA) reporting helps citizens, elected officials, appointed officials, investors and creditors, and other interested parties evaluate the government's performance in the absence of a "bottom line" measure such as exists for for-profit entities. True False True False
Answer Key: True Question 4 of 10
1.0 Points
Which of the following budgetary approaches starts with line-item expenditures and applies a factor approximating the inflation rate to most items, unless specific information is available to suggest a different factor be applied? A. Performance budgeting. B. Incremental budgeting. C. Zero-based budgeting. D. Program budgeting.
1.0 Points
The schedule of legally required events in the budgeting process is generally referred to as the A. Hearing schedule. B. Legal timetable.
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C. Budget calendar. D. Budget docket.
Which of the following is not an element of a typical governmental total quality management (TQM) structure? A. Strong central control over personnel classifications, budget allocations, and procurement. B. Customer orientation. C. Support and commitment of top-level officials. D. Reduction of barriers to productivity and quality improvement.
1.0 Points
Which of the following has contributed most to governments' increased interest in activity-based accounting? A. GASB standards. B. Increased demand for high profile management tools to bolster the image of government. C. The Single Audit Act of 1984 (and 1996 Amendments). D. Implementation of innovative management approaches (such as TQM and SEA measures) in response to public demand for greater accountability and productivity.
1.0 Points
Service Efforts and Accomplishments reporting may be important because: A. SEA reporting provides more complete information about a government entity's performance than can be provided by the operating statement, balance sheet, and budgetary comparison statement which provide only
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incomplete information about a government's performance. B. The GASB requires supplemental reporting of service efforts and accomplishments. C. Enterprise fund statements do not do a good job of measuring efficiency or effectiveness. D. All of the above.
1.0 Points
A government publishes information about its fire department. What type of service efforts and accomplishments measure would Fire Loss per Capita represent? A. Outcome B. Output C. Input D. Efficiency
1.0 Points
What is the correct hierarchy of performance indicators of SEA's? A. Indicators of service efforts, indicators of service accomplishments, indicators of efficiency B. Indicators of service efforts, mission objectives, indicators of efficiency C. Indicators of efficiency, indicators of service accomplishments, indicators of service efforts D. Indicators of service accomplishments, indicators of efficiency, indicators of service efforts
Answer Key: A
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377971 A335/A508 Quiz
Part 1 of 1 -
10.0 Points
Question 1 of 10
1.0 Points
Statement of Financial Accounting Standards (SFAS) No. 116 on contributions received and contributions made describes measurement and reporting rules for A. Nonexchange transactions, such as unrestricted and restricted gifts. B. Investment income (i.e., dividends and interest). C. Exchange transactions, such as membership dues and charges for services. D. Gains and losses on investment income.
Temporarily restricted net assets are released from restrictions A. When they are converted to permanently restricted net assets. B. As assets are spent for the purposes intended by the donor. C. When funds are returned to the donor. D. At the end of each fiscal year.
Securities donated to an NPO should be recorded at the
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A. Fair market value at the date of the gift, or the donor's recorded amount, whichever is higher. B. Fair market value at the date of the gift, or the donor's recorded amount, whichever is lower. C. Donor's recorded amount. D. Fair market value at the date of the gift.
Which of the following contributions would not have to be reported as an asset on the statement of financial position of a not-for-profit organization? A. An art collector donated a famous oil painting to a local nongovernmental art museum for display in its exhibit hall. B. The original courthouse was donated to the Historical Preservation Society that is converting the courthouse to a museum. C. Land was donated to the Friends of the Forest Society for conversion into a nature trail. D. A valuable coin collection was donated to the Youth for Conservation organization, which the organization plans to sell at current market prices.
The purpose of a statement of functional expenses is to A. Report on the natural expenses (object-of-expense), as well as program and support functions expenses. B. Report on the cash flows of each program and that of supporting the programs. C. Report on the net income of each program compared to that of supporting the programs. D. Report on program expenses and supporting expenses.
Answer Key: A
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Question 6 of 10
1.0 Points
Which of the following is part of the treatment of multi-year pledges as required by FASB Statement No. 116? A. At the end of each accounting period, the difference between the balance in the receivable account and the new present value is recorded as contribution revenue and the receivable is increased. B. The donation is recorded as a receivable at the present value of the future collections but revenue is not recorded until the pledge is received. C. Pledge receivable is recorded for the total amount to be received and revenue is recorded each year as monies are received by the organization. D. At the end of each accounting period, the difference between the balance in the receivable account and the new present value is deducted from the amount of the amount received from the donor which is recorded as income.
Contributed services are recognized as revenue for a private not-for-profit when the service: A. Is related to administration and fund raising activities. B. Requires specialized skills, is provided by someone possessing those skills, and typically would be purchased if not provided by donation. C. A and B are both required for the service to be recorded as revenue D. None of the above, contributed services are not recorded as revenue
1.0 Points
Which of the following is true regarding the Statement of Financial Position for nongovernmental, not-for-profit organizations? A. The Statement must display assets and liabilities separated between the categories of unrestricted, temporarily restricted, and permanently restricted. B. The Statement must display totals for net assets separated between the categories of unrestricted, temporarily restricted, and permanently restricted. C. Both of the above.
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D. Neither of the above.
A skilled carpenter repaired the roof for a private not-for-profit free of charge. The not-for-profit would have had to pay $2,000 for this service if not donated. What entry should the not-for-profit make? A. Service expense $2,000 B. Building $2,000 C. Contribution revenue $2,000 D. No entries are required for this event. E. Improvements $2,000 F. Contribution revenue $2,000
1.0 Points
Lisa informed her church that she had named the church in her will and later provided a written copy of the will to the church. At what point should the church record the contribution? A. At the date the probate court declares the will valid following her death. B. At the time when the church was informed of her will. C. At the time the church receives a written copy of the will. D. At Lisa's death.
Answer Key: A
35

377983 A335/A508 Quiz
Part 1 of 1 -
10.0 Points
Question 1 of 10
1.0 Points
Which of the following is not correct regarding executive compensation at tax-exempt organizations? A. If the compensation is found to be unreasonable, the executive is required to pay back the amount of compensation deemed excessive plus a 10% penalty. B. If the IRs deems wages and benefits to be in excess of reasonable amounts, the IRs may impose sanctions on the individual receiving the benefits. C. Benefits include salaries, deferred compensation, insurance, loans and medical benefits. D. If the IRs deems wages and benefits to be in excess of reasonable amounts, the IRs may impose sanctions on the managers who approved the wages and benefits.
The statements required to be filed on Form 990 include which of the following? A. Statement of Revenues, Statement of Operational Expenses and Balance Sheet B. Statement of Revenues, Statement of Functional Expenses and Balance Sheet C. Income Statement, Balance Sheet and Statement of Cash Flows D. Statement of Revenues, Expenses and Fund Balance and Statement of Net Assets
Which of the following is not prohibited of organizations receiving tax exempt status under IRS Section 501(c)3?
36
A. Earning a profit (increase in net assets). B. None of the above. All of these are prohibited of Tax Exempt organizations. C. Endorsing political candidates or attempting to influence legislation. D. Distributing earnings to the benefit of members or officers.
Which of the following tax-exempt organizations would be required to file a form 990 or 990-EZ? A. A charity with gross receipts of > $25,000. B. A church with gross receipts of > $25,000. C. Both (a) and (b). D. Neither (a) nor (b).
1.0 Points
Which of the following activities may give rise to Unrelated Business Income Tax? A. Investment income arising from investment of unrestricted funds. B. Sale of donated merchandise. C. Advertising revenues from advertisements in a newsletter. D. None of the above would give rise to unrelated business income.
1.0 Points
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Which of the following may be deducted in computing income from unrelated business activities? A. Ordinary and necessary business expenses. B. $1,000 exemption. C. Charitable contributions. D. All of the above.
1.0 Points
Which of the following is a reason why an NPO might fail to qualify for tax-exempt status? A. Its officers are paid excessive wages. B. Its primary purpose is to promote the passage of legislation favorable to institutions of higher education. C. It has unrelated business income. D. It is operated primarily for the benefit of its members.
The Internal Revenue Service may impose intermediate sanctions on all of the following transactions between a notfor-profit organization and its executive officer except A. Fringe benefits comparable to those given to all employees. B. More than the fair rental value for property owned by the officer. C. A bargain on the sale of assets. D. Excessive compensation.
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1.0 Points
The term that means information skewed toward a particular belief with a tendency to have little or no factual basis is A. Political influence. B. Lobbying. C. Legislation. D. Propaganda.
A tax-exempt organization that receives its support primarily from a large number of individuals or corporations and a relatively small amount from investment income is called a A. Public foundation. B. Private foundation. C. Public charity. D. Voluntary health and welfare organization.
Answer Key: C

380671 A335/A508 Quiz
Part 1 of 1 -
10.0 Points
Question 1 of 10
1.0 Points
What type of college or university must report expenses by functional classification?
39
A. Both private and public colleges and universities. B. Private colleges and universities. C. Public colleges and universities. D. Neither private nor public colleges and universities.
The cost of professors' salaries would normally be recorded in which functional area? A. Institutional support. B. Instruction. C. Service. D. Student services.
Which of the following receipts may properly be accounted for as an increase in unrestricted net assets? A. Federal grant for genetic research. B. Gift from an alumnus for a new college of business building. C. Acceptance of assets, the income from which will be paid to the donor. D. Student tuition and fees.
40
Economic rationality would argue against a university accepting a split interest agreement in which a fixed annuity is payable to the donor if: A. The university has no immediate need for the assets. B. The sum of future annuity payments plus interest thereon exceeds the fair market value of the assets. C. The present value of the future annuity payments and other liabilities exceed the fair market value of the assets. D. The donor has attached conditions to the gift.
The NACUBO Financial Accounting and Reporting Manual treats estimates of uncollectible accounts as: A. Bad debt expense B. A reduction in tuition and fee revenue C. Either bad debt expense or a reduction in tuition and fee revenue as long as the policy is consistently applied D. None of the above; colleges and universities must use the direct write off method
If a donor were to contribute money with instructions that the funds be invested for a period of time and then released to be used for any purpose, this would be called a(n): A. Quasi-endowment B. Permanent endowment C. Term endowment D. Unrestricted endowment
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1.0 Points
According to NACUBO guidelines, what is the correct treatment for recognizing summer school revenues and expenses when a college's fiscal year ends on June 30? A. Recognize expenses in the year in which they were billed and the expenses in the year in which they were incurred. B. Apportion the revenues and expenses to the two fiscal years, following accrual accounting practices similar to those employed by commercial enterprises. C. Recognize the entire amount of revenues and expenses in the year in which the term is predominantly conducted. D. Recognize the entire amount of revenues and expenses in the year in which the term began.
1.0 Points
In 2012, a major drug company agreed to give a not-for-profit private college $1,700,000 to perform testing of a new drug. An advance payment of $700,000 was received in 2012. The college was to receive $4,000 per individual test. In 2012, the college completed 100 tests. How much revenue should the college report for 2012? A. $1,700,000. B. $700,000. C. $- 0 - . D. $400,000.
A public college had tuition and fees for the year ended June 30, 2012 in the amount of $45,000,000. Scholarships, for which no services were required, amounted to $2,300,000. Graduate assistantships, for which services were required, amounted to $2,500,000. The amount to be reported by the college for net tuition and fee revenue would be: A. $40,200,000.
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B. $45,000,000. C. $42,500,000. D. $42,700,000.
GASB Statement 39: Determining Whether Certain Organizations Are Component Units applies to all of the following except: A. Health care entities. B. Museums. C. General governments. D. Booster clubs.
Answer Key: D
Chp 17
Student: ___________________________________________________________________________
1.
Which of the following is not correct with respect to reporting of patient service revenue for health care organizations? A. B. C. D. Patient service revenue must be reported net of estimated adjustments for contractual adjustments Contractual adjustments must be reported as a prior period adjustment if material Patient service revenue does not include charity care Unrestricted bequests and investment income for current unrestricted purposes may be reported as either operating or nonoperatiang revenue, depending on the policy of the entity
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2.
Which of the following is correct with respect to the recording of charity care for health care organizations? A. Charity care is recorded as revenue and an adjustment is recorded for the difference between the value of the revenue and expenses incurred in providing health care services. B. Revenues are not recorded for the value of charity care services provided, but related expenses are included with other expenses on the Statement of Operations. C. The value of foregone charity care revenue is deducted as a charitable contribution. D. Management's policy for providing charity care and the level of charity care provided is an optional disclosure.
3.
St. David's is a not-for-profit business-oriented hospital. What is the journal entry for the following transaction? During the month, gross patient service revenue amounted to $92,656 of which $81,650 was received in cash. Contractual adjustments to third-party payers amounted to $10,000. A. Cash 81,650 B. Patient Accounts Receivable 1,006 C. Operating Revenues - Unrestricted Patient Service Revenue 82,656 D. Cash 81,650 E. Patient Accounts Receivable 11,006 F. Operating Revenues - Unrestricted Patient Service Revenue 92,656 G. Operating Revenues-Unrestricted patient Service Revenue 10,000 H. Patient Accounts receivable 10,000 I. Cash 81,650 J. Patient Accounts Receivable 11,006 K. Operating Revenues - Unrestricted Patient Service Revenue 92,656 L. Contractual Adjustments - Unrestricted 10,000 M. Patient Accounts receivable 10,000 N. Cash 81,650 O. Patient Accounts Receivable 11,006 P. Operating Revenues - Patient Service Revenue, Restricted 92,656 Q. Contractual Adjustments - Restricted 10,000 R. Patient Accounts receivable 10,000
4.
Which of the following is not true regarding financial reporting of health care entities? A. It is important to distinguish operating revenues and expenses from nonoperating. B. It is important to distinguish between current and noncurrent assets and liabilities. C. Private sector organizations use a three-category format for the Statement of Cash Flows, and public sector organizations use a four-category format. D. Private sector organizations use accrual accounting, while public sector organizations use modified accrual.
5.
Which of the following is true regarding revenue recognition for health care organizations? A. B. C. D. Patient service revenue is reported net of contractual adjustments. Patient service revenue includes an imputed charge for charity care. Both of the above. Neither of the above.
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6.
Health care organizations require a "performance indicator" in the statement displaying revenues and expenses. Which of the following must be reported below that performance indicator? A. B. C. D. Transfers-in from affiliated organizations. Investment returns restricted by donors or by law. Both of the above. Neither of the above.
7.
A private sector, not-for-profit hospital received a pledge of $150,000 in 2011 to be used for a building to be constructed in 2012 but contingent on the hospital being able to raise an equivalent amount from other donors. As of the end of 2011, half the amount had been raised from other donors. In 2012, the hospital raised the amount from other donors. The donor gave the $150,000 to the hospital in 2012 and the building was completed in 2012. In which year should the hospital recognize the $150,000 from the pledge? A. B. C. D. 2011. 2012. 2013. $75,000 should be recognized in 2011 and $75,000 in 2012.
8.
Not-for-profit health care entities are distinguished from voluntary health and welfare organizations in the following manner: A. Health care organizations provide health care services while voluntary health and welfare organizations do not. B. Health care organizations use accrual accounting whereas voluntary health and welfare organizations do not. C. Health care organizations are considered to be primarily business-oriented whereas voluntary health and welfare organizations raise a significant portion of their money from voluntary contributions. D. Health care organizations do not provide services to individuals who are unable to pay.
9.
The equity section of the Statement of Net Assets of a government-owned hospital may contain which of the following descriptions? A. B. C. D. Fiduciary, Proprietary, and General. Reserved, Unreserved, and Undesignated. Invested in Capital Assets Net of Related Debt, Restricted, and Unrestricted. Permanently Restricted, Temporarily Restricted, and Unrestricted.
10. The difference between the financial statements of private not-for profit hospitals and private not-forprofit voluntary health and welfare organizations is: A. B. C. D. Hospitals do not have to prepare a Statement of Functional Expense. Voluntary health and welfare organizations do not have to prepare a Statement of Cash Flows. Both (a) and (b) above. Neither (a) nor (b) above.
45
Chp 17 Key
1. B 2. B 3. ADIN 4. D 5. A 6. C 7. B 8. C 9. C 10. A
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Quiz 1 Chapter 1 Government Accounting

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Quiz 1 Chapter 1 Government Accounting

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Quiz 1 Chapter 1 Question 1 of 10

10.0 Points 1.0 Points

Answer Key: B Question 2 of 10 1.0 Points

Answer Key: A Question 5 of 10 1.0 Points

10.0 Points 1.0 Points

Answer Key: True Question 2 of 10 1.0 Points

Answer Key: A Question 5 of 10 1.0 Points

Answer Key: A Question 6 of 10

D. Required by GAAP for all governmental fund types.

A335/A508 Quiz 4 Chapter 3Return to Assessment List

Answer Key: True Question 2 of 10 1.0 Points

Answer Key: True Question 3 of 10

Answer Key: True Question 4 of 10 1.0 Points

Answer Key: True Question 5 of 10 1.0 Points

A. Program revenues. B. Extraordinary items. C. General revenues. D. Indirect revenues.

Answer Key: A Question 6 of 10 1.0 Points

Answer Key: A Question 7 of 10 1.0 Points

Answer Key: A Question 9 of 10

Answer Key: B Question 10 of 10

A335/A508 Quiz 6 Chapter 5 Part 1 of 1 Question 1 of 10 10.0 Points 1.0 Points

Answer Key: True Question 2 of 10 1.0 Points

Answer Key: False Question 3 of 10 1.0 Points

Answer Key: True Question 4 of 10 1.0 Points

A. $0. B. $900,000. C. $925,000. D. $875,000.

Answer Key: B Question 5 of 10 1.0 Points

Answer Key: B Question 6 of 10 1.0 Points

A335/A508 Quiz 7 Chapter 6

Answer Key: C Question 2 of 10 1.0 Points

Answer Key: D Question 3 of 10 1.0 Points

A debt service fund is a

A. Nonexpendable fund. B. Proprietary fund. C. Fiduciary fund. D. Governmental fund.

Answer Key: D Question 4 of 10 1.0 Points

Answer Key: A Question 5 of 10

Answer Key: C Question 6 of 10

Answer Key: B Question 7 of 10 1.0 Points

Answer Key: C Question 8 of 10 1.0 Points

Answer Key: B Question 9 of 10 1.0 Points

Answer Key: D Question 10 of 10 1.0 Points

A335/A508 Quiz 8 Chapter 7

Answer Key: D Question 2 of 10 1.0 Points

Answer Key: B Question 3 of 10 1.0 Points

Answer Key: A Question 4 of 10 1.0 Points

Answer Key: A Question 5 of 10 1.0 Points

Answer Key: A Question 6 of 10 1.0 Points

Answer Key: A Question 7 of 10

Answer Key: D Question 8 of 10 1.0 Points

Answer Key: B Question 9 of 10

Answer Key: B Question 10 of 10

A335/A508 Quiz 10 Chapter 12

Answer Key: C Question 2 of 10 1.0 Points

Answer Key: B Question 3 of 10 1.0 Points

D. Financial and performance audits, and attestation engagements.

Answer Key: C Question 4 of 10 1.0 Points

Answer Key: C Question 5 of 10

Answer Key: A Question 6 of 10

Answer Key: B Question 7 of 10 1.0 Points

Answer Key: D Question 8 of 10 1.0 Points

Answer Key: B Question 9 of 10

Answer Key: B Question 10 of 10

A335/A508 Quiz 11 Chapter 11

Answer Key: True Question 2 of 10 1.0 Points

Answer Key: True Question 3 of 10 1.0 Points