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Accounting Final Ch 18 Flashcards

1
Q

The highest level of priority of pronouncements that a government entity should look to for accounting and reporting guidance is

a. GASB Technical Bulletins.
b. GASB Concepts Statements.
c. AICPA Industry Accounting Guides.
d. GASB Statements.

A

d. GASB Statements.

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2
Q

Which of the following funds would account for operations that are financed and operated in a manner similar to private business enterprises?

a. Debt Service Fund
b. Enterprise Fund
c. Internal Service Fund
d. Special Revenue Fund

A

b. Enterprise Fund

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3
Q

All of the following are Governmental (Expendable) Fund Entities except the

a. Capital Projects Fund.
b. Debt Service Fund.
c. Internal Service Fund.
d. Special Revenue Fund.

A

c. Internal Service Fund.

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4
Q

The activities of a municipal airport should be accounted for in the

a. General Fund.
b. Internal Service Fund.
c. Special Revenue Fund.
d. Enterprise Fund.

A

d. Enterprise Fund.

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5
Q

Fixed assets and noncurrent liabilities are accounted for in the records of

a. governmental funds
b. expendable funds
c. proprietary funds
d. both governmental and expendable funds.

A

c. proprietary funds

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6
Q

The liability for general obligation long-term debt is reported in the

a. Debt Service Fund.
b. Capital Projects Fund.
c. Enterprise Fund.
d. none of these.

A

d. none of these.

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7
Q

The activities of a central computer facility should be accounted for in the

a. General Fund.
b. Internal Service Fund.
c. Enterprise Fund.
d. Capital Projects Fund.

A

b. Internal Service Fund.

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8
Q

Internal Service Fund billings to government departments for services rendered is an example of interfund

a. reimbursements.
b. transfers.
c. services provided and used.
d. loans.

A

c. services provided and used.

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9
Q

A nonrecurring contribution from the General Fund to the Enterprise Fund is an example of an interfund

a. reimbursement.
b. transfer.
c. services provided and used.
d. loan.

A

b. transfer.

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10
Q

For state and local government units, the full accrual basis of accounting should be used for what type of fund?

a. Special revenue
b. General
c. Debt service
d. Internal service

A

d. Internal service

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11
Q

Encumbrances would not appear in which fund?

a. General
b. Enterprise
c. Capital projects
d. Special revenue

A

b. Enterprise

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12
Q

Which type of fund can be either expendable or nonexpendable?

a. Debt service
b. Enterprise
c. Trust
d. Special revenues

A

c. Trust

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13
Q

Which of the following funds frequently does not have a fund balance?

a. General fund
b. Agency fund
c. Special revenue fund
d. Capital projects fund

A

b. Agency fund

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14
Q

A city should record depreciation as an expense in its

a. general fund and enterprise fund.
b. internal service fund and general fund.
c. enterprise fund and internal service fund.
d. enterprise fund and capital projects fund.

A

c. enterprise fund and internal service fund.

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15
Q

Part of the general obligation bond proceeds from a new issuance was used to pay for the cost of a new city hall as soon as construction was completed. The remainder of the proceeds was transferred to repay the debt. Entries are needed to record these transactions in the

a. general fund and capital projects fund.
b. general fund and debt-service fund.
c. trust fund and debt-service fund.
d. debt-service fund and capital projects fund.

A

d. debt-service fund and capital projects fund.

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16
Q

One of the differences between accounting for a governmental unit and a commercial unit is that a governmental unit should

a. not record depreciation expense in any of its funds.
b. always establish and maintain complete self-balancing accounts for each fund.
c. use only the cash basis of accounting.
d. use only the modified accrual basis of accounting.

A

b. always establish and maintain complete self-balancing accounts for each fund.

17
Q

When a truck is received by a governmental unit, it should be recorded in the General Fund as a(n)

a. appropriation.
b. encumbrance.
c. expenditure.
d. fixed asset.

A

c. expenditure.

18
Q

Which of the following should be accrued as revenues by the general fund of a local government?

a. Sales tax held by the state which will be remitted to the local government
b. Parking meter revenues
c. Sales tax collected by merchants
d. Income taxes currently due

A

a. Sales tax held by the state which will be remitted to the local government

19
Q

Which of the following funds of a governmental unit recognizes revenues and expenditures under the same basis of accounting as the general fund?

a. Debt service
b. Enterprise
c. Internal service
d. Nonexpendable trust

A

a. Debt service

20
Q

Repayments from the funds responsible for a particular expenditure to the funds that initially paid for them are interfund

a. loans.
b. services provided and used.
c. transfers.
d. reimbursements.

A

d. reimbursements.

21
Q

It is proper to recognize revenues or expenditures resulting from which of the following classifications of interfund activity?

a. Interfund loans and interfund transfers
b. Interfund services provided/used and interfund reimbursements
c. Interfund reimbursements and interfund loans
d. Interfund services provided/used and interfund transfers

A

b. Interfund services provided/used and interfund reimbursements

22
Q

Revenues of a special revenue fund of a governmental unit should be recognized in the period in which the

a. revenues become available and measurable.
b. revenues become available and appropriated.
c. revenues are billable.
d. cash is received.

A

a. revenues become available and measurable.

23
Q

What is the underlying reason a governmental unit uses separate funds to account for its transactions?

a. Governmental units are so large that it would be unduly cumbersome to account for all transactions as a single unit.
b. Because of the diverse nature of the services offered and legal provisions regarding activities of a governmental unit, it is necessary to segregate activities by functional nature.
c. Generally accepted accounting principles require that nonbusiness entities report on a funds basis.
d. Many activities carried on by governmental units are short-lived and their inclusion in a general set of accounts could cause undue probability of error and omission.

A

b. Because of the diverse nature of the services offered and legal provisions regarding activities of a governmental unit, it is necessary to segregate activities by functional nature.

24
Q

Which of the following is not a budgetary account?

a. Appropriations
b. Estimated Revenues
c. Encumbrances
d. Reserve for Encumbrances

A

d. Reserve for Encumbrances

25
Q

An interfund transfer should be reported in a governmental fund operating statement as a(n):

a. due from (to) other funds
b. other financing source (use)
c. revenue or expenditure
d. none of the above

A

b. other financing source (use)

advanced accounting (3 decks)

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