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ACCY 407 Exam 1 Review | 100% Correct
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The basic financial statements of a not-for-profit include all of the following except a. Statement of activities. b. Statement of financial position. c. Statement of cash flows. d. Statement of changes in functional expenses. - โโd Which of the following would typically not be included in the introductory section of a comprehensive annual financial report? a. Summary of the government's current financial position and results of financial activities. b. Title and contents page. c. Letter of transmittal. d. A description of the government. - โโa A statistical section should be included in a. The notes to the financial statements. b. A comprehensive annual financial report (CAFR). c. Required supplementary information, other than MD&A. d. The basic financial statements. - โโb Which of the following should be included in the financial section of a comprehensive annual financial report? a. A description of the government. b. Tables and charts showing demographic and economic data.
c. Transmittal letter. d. The basic financial statements, including notes thereto. - โโd Which of the following is not classified as a support activity reported by not-for-profit entities? a. Management expenses. b. Fund-raising expenses. c. General expenses of operating the not-for-profit entity. d. Program expenses. - โโd In addition to financial statements and notes, the GASB requires governments to provide information on service efforts and accomplishments (SEA) in their reports to the public. a. True b. False - โโb The governmental fund financial statements are intended to report on fiscal accountability. a. True b. False - โโa Government-wide financial statements are prepared using the accrual basis of accounting. a. True b. False - โโa Similar to for-profit entities, net income serves as a good measure of a government's performance. a. True b. False - โโb
d. An internal service fund. - โโc Separate reporting for major funds is needed because a. Users of government financial statements need to be able to examine the activities and resources of fiduciary funds. b. Users of government financial statements need to be able to examine funds that represent large dollar amounts of a government's resources and activities. c. It is a violation of standards to aggregate funds where the elements of the fund represent at least 5 percent of the corresponding element for all funds of the same type. d. Users of government financial statements are usually interested in the details of every fund used by a government. - โโb According to the GASB definition, which of the following represents an inflow of resources? a. Assets. b. Deferred inflows. c. Revenues. d. Expenditures. - โโc There are four major activity categories reported by state and local governments: governmental, government-wide, proprietary, and fiduciary. a. True b. False - โโb The maximum sets of fund financial statements a government would present are three. a. True b. False - โโa Governmental activities include the core services provided by a government, such as public safety.
a. True b. False - โโa Activities a local government can engage in are classified as governmental, business-type, or fiduciary. a. True b. False - โโa Revenues is an example of what the GASB terms an inflow of resources. a. True b. False - โโa For each of the following fund types, indicate the fund category by selecting either Governmental funds, Proprietary funds, or Fiduciary funds for each item. Custodial Fund a. Governmental Fund b. Proprietary Fund c. Fiduciary Fund - โโc For each of the following fund types, indicate the fund category by selecting either Governmental funds, Proprietary funds, or Fiduciary funds for each item. Permanent Fund a. Governmental Fund b. Proprietary Fund c. Fiduciary Fund - โโa
Special revenue Fund a. Governmental Fund b. Proprietary Fund c. Fiduciary Fund - โโa For each of the following fund types, indicate the fund category by selecting either Governmental funds, Proprietary funds, or Fiduciary funds for each item. Enterprise Fund a. Governmental Fund b. Proprietary Fund c. Fiduciary Fund - โโb For each of the following fund types, indicate the fund category by selecting either Governmental funds, Proprietary funds, or Fiduciary funds for each item. General Fund a. Governmental Fund b. Proprietary Fund c. Fiduciary Fund - โโa For each of the following fund types, indicate the fund category by selecting either Governmental funds, Proprietary funds, or Fiduciary funds for each item. Investment Trust Fund a. Governmental Fund b. Proprietary Fund
c. Fiduciary Fund - โโc For each of the following fund types, indicate the fund category by selecting either Governmental funds, Proprietary funds, or Fiduciary funds for each item. Capital Projects Fund a. Governmental Fund b. Proprietary Fund c. Fiduciary Fund - โโa For each of the following fund types, indicate the fund category by selecting either Governmental funds, Proprietary funds, or Fiduciary funds for each item. Private-purpose Trust Fund a. Governmental Fund b. Proprietary Fund c. Fiduciary Fund - โโc When the budget of a government is adopted and Estimated Revenues exceed Appropriations, the excess is: a. Debited to Budgetary Fund Balance. b. Debited to Encumbrances Outstanding. c. Credited to Budgetary Fund Balance. d. Credited to Encumbrances Outstanding. - โโc Which of the following is not a category of program revenue reported on the statement of activities at the government-wide level?
a. True b. False - โโb Available means that a revenue or other financing source is expected to be collected during the current fiscal period or within one month of the fiscal year end. a. True b. False - โโb A permanent endowment is an example of a nonspendable fund balance. a. True b. False - โโa Budgetary accounts used in the General Fund include Estimated Revenues, Estimated Other Financing Sources, Appropriations, Estimated Other Financing Uses, and Encumbrances. a. True b. False - โโa The General Fund is the only fund that can have a positive unassigned fund balance. a. True b. False - โโa For each of the following scenarios, indicate the most likely classification of reporting. At year-end a special revenue fund has a $50,000 fund balance on which there are no constraints. a. Assigned b. Committed
c. Nonspendable d. Restricted e. Unassigned - โโa For each of the following scenarios, indicate the most likely classification of reporting. Allentown has a $1,000,000 emergency reserve fund it set aside. According to the town ordinance, funds can only be used from this fund with approval of two-thirds of the governing body, which is the town council. a. Assigned b. Committed c. Nonspendable d. Restricted e. Unassigned - โโb For each of the following scenarios, indicate the most likely classification of reporting. Allentown determined that the General Fund has $22,000 in inventory it should report on its fund financial statements. a. Assigned b. Committed c. Nonspendable d. Restricted e. Unassigned - โโc For each of the following scenarios, indicate the most likely classification of reporting. Allentown issued bonds that sold at a premium. Using the authority allowed her by the town council, the city manager made the decision to set aside the $100,000 premium to pay the principal on the debt when it comes due in a future period.
At the end of the reporting period, Allentown's General Fund statement of revenues, expenditures, and changes in fund balances reported a net change in fund balances of $154,238. a. Assigned b. Committed c. Nonspendable d. Restricted e. Unassigned - โโe For each of the following scenarios, indicate the most likely classification of reporting. Allentown's mayor indicated that he was setting aside $25,000 of funds for the future purchase of land for a town park. a. Assigned b. Committed c. Nonspendable d. Restricted e. Unassigned - โโa For each of the following scenarios, indicate the most likely classification of reporting. The Allentown council passed an ordinance requiring that 5% of the town's sales tax revenue be set aside for economic development; this year that amount was $24,650. a. Assigned b. Committed c. Nonspendable d. Restricted e. Unassigned - โโb
For each of the following scenarios, indicate the most likely classification of reporting. The capital projects fund ended the reporting period with a negative fund balance. a. Assigned b. Committed c. Nonspendable d. Restricted e. Unassigned - โโe On what should the governmental fund financial statements report? a. Fiscal accountability b. Net position and results of financial operations of the government as a whole. c. Operational accountability. d. Cost of government services. - โโa Which of the following should be included in the financial section of a comprehensive annual financial report? a. A description of the government. b. Tables and charts showing demographic and economic data. c. The basic financial statements, including notes thereto. d. Transmittal letter. - โโc 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? a. All not-for-profit entities. b.Health care entities. c. Voluntary health and welfare entities.
d. Internal service fund. - โโb Capital assets used by an enterprise fund should be accounted for in the a. Governmental activities journal and depreciation on the capital assets should be recorded. b. Business-type activities journal but no depreciation on the capital assets should be recorded. c. Enterprise fund and depreciation on the capital assets should be recorded. d. Enterprise fund but no depreciation on the capital assets should be recorded. - โโc Which of the following funds are proprietary funds? a. Internal service funds, special revenue funds, and enterprise funds. b. Enterprise funds, investment trust funds, pension trust funds, and the General Fund. c. Enterprise funds and internal service funds. d. Proprietary funds are not used in governmental accounting. - โโc
