Chapter 2 Flashcards
(171 cards)
1
Q
Funds established to account for resources held by a government in a purely custodial capacity for others.
A
Agency Fund
2
Q
The city of Hannah has established a trust to provide resources to offset the costs of maintenance of the city-owend cemetery. The majority of the resources of this trust will be cemetery plot sales and donations from families of those buried in the cemetery. The trust corpus is nonexpendable in nature. Transactions associated with this trust activity would most likely be accounted for in a ____.
A
Permanent Fund
3
Q
The notes to the financial statements typically are notes to bot the ____ and ____ financial statements.
A
fund and government wide
4
Q
Funds established to account for the external portion of investment pools held by the sponsoring government.
A
Investment Trust Funds
5
Q
Governmental accounting systems must provide data ____.
A
both for external reporting in conformity with GAAP and for controlling and reporting on finance-related legal compliance matters
6
Q
For most governments, the majority of their general government activities and the largest number and dollar amount of their transactions are reported in the ____.
A
General Fund
7
Q
Many other governments voluntarily accumulate amounts to repay the principal and interest on general long-term debt. These governments use ____ to maintain accountability over resources that are to be used to repay debt.
A
Debt Services Fund
8
Q
Donation to the city where the principal is to remain intact forever and the earnings are to be used to benefit the Boy Scout and Girl Scout organizations in the city.
A
Private Purpose Trust Fund
9
Q
True or false: The GASB does not specify how to maintain the nonfund accounts for general capital assets and general long-term liabilities.
A
True
10
Q
The activities of a municipal employee retirement plan that is financed by equal employer and employee contributions should be accounted for in ___.
A
a Trust Fund
11
Q
What are the four types of interfund activies?
A
Interfund loans, interfund services provided and used, Interfund reimbursements, and Interfund transfers
12
Q
School buildings are accounted for in ____.
A
General Capital Assets
13
Q
Cash and investments of a bond sinking fund established to service general governemnt long-term debt are accounted for in ___.
A
General Service Fund
14
Q
Collects taxes withheld from employees throughout the government and makes payments to the appropriate government for these withholdings.
A
Agency Fund
15
Q
A transaction in which a municipal electric utility issues bonds (to be repaid from its own operations) requires accounting recognition in ___.
A
Enterprise Fund
16
Q
Grant proceeds that are restricted for a specific purpose are recorded in a ____.
A
special revenue funds account
17
Q
Unrestricted tax revenues should be accounted for in ____.
A
General Fund
18
Q
What is typically accounted for in the “water and sewer” Enterprise Fund?
A
municipal governments and special district operations of utilities. Example: Water treatment and sanitary sewage facilities for which they charge a fee to customers
19
Q
Used to account for acquisition of major capital assets.
A
Capital Projects Fund
20
Q
What are the two types of proprietary Funds?
A
Enterprise Funds; Internal Service Funds
21
Q
The ____ of a state or local government are secured by the general credit and revenue raising powers of the government rather than by the assets acquired or specific fund resources.
A
General Long-Term Liabilities
22
Q
The city would account for the actuates of a central garage in the ____.
A
Internal Service Funds
23
Q
Governments must comply with the many _____.
A
finance-related legal and contractual requirements, regulations, restrictions, and agreements
24
Q
The actiities of a central motor pool that provides and services vehicles for the official use of municipal employees from several city departments and charges them a fee to recover costs incurred should be accounted for in _____.
A
Internal Service Fund
25
GAAP based financial statements are necessary to ensure \_\_\_\_.
proper external financial reporting and a reasonable degree of comparability among the annual financial statements of governments across the nation
26
Where would the payment of cash to employees for monthly salaries be recorded?
General Funds
27
\_\_\_\_\_ financial statements are highly summarized.
Government-Wide
28
Bond proceeds fund (to account for proceeds or bonds issued to finance street construciton) are accounted for in \_\_\_.
Capital Projects Funds
29
The montly remittance to an insurance company of the lump sum of hospital-surgical insurance premiums collected as payroll deductions from employees should be recorded in \_\_\_\_.
Agency Fund
30
The ____ financial statements are more detailed than the ____ statements.
fund; government-wide
31
Recognized in governmental fund financial statements: Generally net financial assets expended during a period for current operations, capital outlay, long-term debt principal retirement, and interest.
Expenditures
32
33
What are the 5 types of local governments?
Counties; Municipalities; Townships; School Districts; Special Districts
34
A government's accounting system must be designed to \_\_\_\_\_.
maintain and provide information to accomplish multiple purposes
35
Which of the following should be reported as expenditures in governmental funds? Which should be accounted for as Expenses?
A. Salaries
B. Interst on short-term debt
C. Purchae of Equipment
D. Long-term liability principal retirement
E. Depreciation
F. Short-Term Liability Principal Retirement
Expenditures: Salaries, Interest on Shert-term debt, Purchase of equipment, Long-term liability principal retirement
Expenses: depreiation, short-term liability principal retirement
36
Where would the receipt of a bill from the contractor for construction costs on a building be recorded?
Capital Projectes
37
What are the three required financial statements included in the basic financial statements?
Government-Wide Statements Fund Financial Statements Notes to the Financial Statements Retained Earnings
38
Tax revenues resturcted for road maintenace should be recorded in \_\_\_.
Special Revenue Fund
39
Not accounted for in governmental financial statements.
General long-term liabilities
40
Electric Fund (to account for revenues received from the sale of electricity to the public) are accounted for in which accounts?
Enterprise Funds
41
General government activities commonly reported in the general fund include what?
Police protection, fire protection, general administration, street maintenance, and public park maintenance.
42
The financial reporting model has been called a ____ model.
Duel Perspective
43
A county may use an ____ to account for the activities of a central duplicating and printing department that serves various county departments.
Internal Service Funds
44
The transactions of a Community Development Block Grant that must be used to finance rehabilitation of privately owned housing in an economically depressed neighborhood of the city typically would be reported in which funds and or nonfund accounts?
Special Revenue Fund only
45
General government liabilities (except unmatured general long-term liabilities) payable from governmental funds
Related Liabilities
46
A transaction in which a municipal electric utility paid $150,000 out of its earnings for new equipment requires accounting recognition in \_\_\_\_\>
Enterprise Fund
47
The portion of general government bods payable that matures in the next fiscal year are accounted for in \_\_.
General Capital Assets & General Long-Term liability
48
Receipts from a special fishing tax restricted to maintain the (no-charge) public fishing pier.
Special Revenue Fund
49
Bond redemption fund (to account for taxes and other revenues to be used in retiring bonds) is accounted for in \_\_\_.
Debt Services Fund
50
Long-term note for the government's entral motor pool that "rents" vehicles to other departments and agencies of the government at a rate that reimburses its costs is accounted for \_\_\_.
Internal Service Fund
51
Funds used to account for assets held by a government in a trustee or agency capacity for the benefit of others.
Fiduciary Funds
52
\_\_\_\_\_ accounting measures net position, changes in net position, and cash flows.
Proprietary Fund
53
Operating Fund (to account for unrestricted revenues not related to any other fund) is accounted for in \_\_\_.
General Fund
54
In governmental funds, cash, investments, and receivables.
Financial Assets
55
What is the main difference between expenditures and expenses?
Expenditures typically reflect the net financial assets expended to acquire goods or services, whereas expenses reflect the costs of goods sold or services used
56
Bonds payable issued in a prior year for general government purposes is accounted for in \_\_\_\_.
General Capital Assets & General Long-Term Liabilities Funds
57
Amounts owed to general government bondholdersthat must be paid in the future.
General Long-Term Liability Accounts
58
A transaction in which a municial electric utility paid $150,000 out of its earnings for new equipment requires accounting recognition in a ___ fund.
Enterprise Fund
59
What are common activities that may be accounted for in the Internal Service Funds.
Central stores, health care and other self-insurance activities, and computer services departments
60
Internal Services Funds are classified as \_\_\_.
Proprietary Funds
61
Who is the predominant customer for Enterprise Funds?
the general public (as well as businesses and other entities beyond the government's own departments or agencies)
62
Do not represent financial resources available for expenditure, but are items for which financial resources have been used and for which accountability should be maintained
General Capital Assets
63
May be used to account for any activity of a fund, department, or agency that provides goods or services primarily to other funds, departments, or agencies of the governmental unit, or to other governmental units on a cost-reimbursement basis.
Internal Service Funds
64
Financial assets include \_\_\_\_?
Cash, Investments, and Receivables
65
Transactions between funds are referred to as \_\_\_.
Interfund Activity
66
Purchase of police cars and fire trucks would be accounted for where?
General Fund
67
Detailed presentations of fund net position or fund balance, operating results, and cash flows.
Fund Financial Statements
68
Funds that are established to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest.
Debt Service Funds
69
Where would the payment of $50,000 in building bonds and $30,000 interest matured and paid be recorded.
Debt Service Fund
70
Un-matured, long-term liabilities incurred for government activities.
General Capital Assets
71
The types of transactions, events, or elements that are reported in financial statements.
Measurement Focus
72
What are the 4 types of fiduciary funds?
1. Pension (and other employee benefit) Trust Funds 2. Investment Trust Funds 3. Private-Purpose Trust Funds
73
A brief analysis and discussion by the SLG's management of its financial statements, its schedules, other specified analysis, and any known event or situation that is expected to affect the SLF in the near future
Management's discussion and analysis (MD&A)
74
Expenditures of $200,000 were made during the year on the fire station. This transaction requires accounting recognition in the \_\_\_\_.
Capital Projects Fund, General Capital Assets, and General Long-Term Liabilities Accounts
75
Investment Trust Funds are classified as \_\_\_.
Fiduciary
76
Where would the purchase of capital assets on short-term credit be recorded?
General Fund
77
The activities of a municipal employee retirement plan that is financed by equal employer and employee contributions should be accounted for in a ___ fund.
Trust Fund
78
Resources restricted for construction of a new government office building should be accounted for in \_\_\_.
Capital Projects Fund
79
Condensed consolidating overview presentations of the SLG's net position and activities
Government-wide financial statements
80
Debt Service are classified as \_\_\_\_.
Governmental Funds
81
Receipts from a special tax levy to retire and pay interest on general obligation bonds issued to finance the construction of a new city hall.
Debt Service Fund
82
Each of the following is a fiduciary fund except: A. Permanent Fund B. Investment Trust Fund C. Agency Fund D. Private-Purpose Trust Fund
A. Permanent Fund
83
City Bus Line Fund (to account for revenues received from the public for transportation services) are accounted for in \_\_\_\_.
Enterprise Fund
84
Funds that are permitted to be used to account for any activity for which user fees charged for goods and services provided to external customers (outside the government) are a principal revenue source.
Enterprise Funds
85
A high school's administrative personnel may maintain a bank account that holds the monies of all student organizations. The monies are held in an ___ capacity for the student organization making this an ___ fund.
agency; agency
86
What are the most common examples of deferred inflows in governmental funds.
- Taxes collected in advance of the period for which they are levied or levied in the current period to finance the next period - Amounts related to deferral of revenue recognition because of the "availability criterion - i.e. because cash was not collected soon enough after year end
87
Funds established to account for "resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government's programs - that is, for the benefit of the government or its citizenry.
Permanent Funds
88
Where would the issue of a six-month note to provide temporary financing be recorded?
General Fund
89
The fund financial statements, government-wide financial statements, and notes to the financial statements collectively comprise the ____ financial statements.
basic
90
Speial revenue funds are classified as \_\_\_.
Governmental
91
The proceeds of a federal grant made to assist in financing the future construction of an adult training center should be recorded in \_\_\_.
Capital Projects Fund
92
What is the primary purpose for governmental fund accounting?
to reflect its revenues and expenditures - the sources and uses of its financial resources - and its assets, the related liabilities, and the net financial resource available for subsequent appropriation and expenditure
93
The inclusion of general capital assets in the financial statements of a governmental fund would ____ the fund balance, which could ___ users of the fund balance sheet.
increase; mislead
94
General funds are classified as \_\_\_.
governmental funds
95
In governmental funds; general government liabilities that are related to the current year and are normally paid from available expendable financial assets.
Related Liabilities
96
Permanent Funds are classified as \_\_\_.
Governmental Funds
97
Where would the issue of bonds at par and receipt of cash to finance construction of a building be recorded?
Capital Projects
98
Accountability for general capital assets and un-matured general long-term liabilities is \_\_\_\_.
maintained in separate nonfund accounts
99
Governmental accounting systems are designed, organized, and operated on a ___ basis.
Fund
100
The financial reporting model requires both ____ and \_\_\_.
Fund financial statements; government-wide financial statements
101
Who is the predominant customer for Internal Service Funds?
Other departments or agencies of the government
102
RSI includes:
Management's discussion and analysis (MD&A) Other required supplementary information (RSI)
103
Where would the sell of a capital asset for $7,000 cash; its depreciated cost was $9,000, be recorded?
General Fund
104
Where would the six-month note matured and paid, along with interest, be recorded?
General Fund
105
The use of fund accounting allows governments \_\_\_\_.
both to maintain proper accounting controls over restricted and designated resources and to demonstrate compliance with finance-related legal and contractual provisions.
106
The California Public Employees Retirement System, has established multiple trusts to manage and account for the pension and health care benefits for CA's employees, retirees, and their beneficiaries. This would be recorded where?
Pension Trust Funds
107
Interdeparmental Printing Shop Funds (to account for revenues received from departments for printing done for them by the interdepartmental printing shop) are accounted for in \_\_\_.
Internal Services Fund
108
Park Funds (to account for special taxes levied to finance the operation of parks) is accounted for \_\_\_.
Special revenue Funds
109
Typical water and sewer departments should be accounted or in an \_\_\_.
Enterprise Fund
110
Donation to the city to be invested in perpetuity with the earnings from that investment to help maintain city parks.
Permanent Fund
111
When one government, say a county, bills and collects the property taxes for the cities, school districts, and other taxing agencies within the county.
Agency Fund
112
Activities whose management requires a preiodic measurement of revenues and expenses, and whose customers are the general public.
Enterprise Fund
113
A city collects property taxes on behalf of the local sanitary, park, and school districts and periodically remits collections to these units. This activity should be accounted for in \_\_\_.
Agency Fund
114
The operations of a municipal government's public library receiving the majority of its support from property taxes levied solely for that purpose should be accounting for in \_\_\_\_.
Special Revenues Fund
115
recognized in proprietary fund, trust fund, and government-wide financial statements: costs expired during a period, including depreciation and other allocations as in business accounting
Expenses
116
Funds used to report escheat property established to account for all other trust arrangements under with principal and/or income benefit individuals or groups outside of the government.
Private Purpose Trust Funds
117
Funds established to account for "resources that are required to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution plans, or other post-employmental benefit plans or other employee benefit plans"
Pension Trust Funds
118
A school fund (to account for special taxes levied by a county to finance the operation of schools) is accounted for where?
Special Revenue Fund
119
Funds used to account for a government's continuing business-type organization and activities.
Proprietary Funds
120
Capital assets of a government department that sells services to the public as the primary ongoing source of financing for its operations is accounted for in \_\_\_.
Enterprise Fund
121
Private purpose trust funds are classified as \_\_\_.
Fiduciary Funds
122
The segregation of resources accumulated to pay principal and interest on long-term debt of the general government.
Debt Service Funds
123
Special sales taxes that can only be used by the state for the intended purpose are recorded as revenues in which type of fund?
Special Revenue Funds
124
Segregations of general government net financial assets according to the purpose for which they may be used.
Governmental Funds
125
Money collected for the state fund (to account for money collected as agent for the state) is accounted for in \_\_\_.
Agency Funds
126
The receipts from a special tax levy to retire and pay interest on general obligation bonds issued to finance the construction of a new city hall should be recorded in a \_\_\_\_.
Debt Service Fund
127
A municipality's issuance of general obligation serial bonds to finance the construction of a fire station requires accounting recognition in the \_\_\_\_.
Capital Projects; General Capital Assets; and General Long-Term Liabilities Accounts
128
School Endowment Fund (to account for contributions that cannot be expended but are to be invested to generate earnings to be used for special school programs) are accounted for in \_\_\_\_.
Permanent Fund
129
Governments should prepare financial statements in conformity with \_\_\_.
GAAP
130
The ____ are more detailed than the ___ financial statements.
notes; fund
131
Agency funds are classified as \_\_\_.
Fiduciary
132
Employees' Pension and relief Fund (to provide retirement and disability benefits to employees) is accounted for in \_\_.
Pension Trust Funds
133
Actuarial information related the SLG's defined benefit pension plan and other post-employment benefit plans.
Other required supplementary information (RSI)
134
List a few transactions that would typically be reported in a county's general fund?
1. The purchase of 10 new public safety vehicles 2. The annual lease payment for the copiers in the county courthouse 3. the collection of property taxes that are past due from previous years
135
Accounts for contributions by the government and employees to be invested and paid to employees after retirement.
Pension Trust Fund
136
Funds established to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.
Special Revenue Funds
137
Where would the purchase of a capital asset with cash be recorded.
General Fund
138
Capital outlays for major general government facilities and other projects financed from general obligation bond proceeds must be reported using a \_\_\_\_.
Capital Projects Fund
139
\_\_\_\_ are classified as governmental funds even though they may not be expendable funds like other governmental funds.
Permanent Funds
140
Capital Projects are classified as \_\_\_.
Governmental Funds
141
Used to account for land, buildings, and equipment owned by the government.
General Capital Asset Accounts
142
The governmental funds and nonfund accounts are used to account for \_\_\_\_.
General Government
143
In governmental funds: the net position of the the fund - the difference between its financial assets plus deferred outflows and its related liabilities and deferred inflows.
Fund Balance
144
What is the major difference between proprietary funds and governmental funds?
governmental fund does not include either capital assets used in general government activities or un-matured long-term liabilities incurred for those activities
145
Pension Trust Funds are classified as \_\_\_.
Fiduciary Funds
146
The operations of a city bus line receiving all its funding from user charges class?
Enterprise Fund
147
Where are the activities of government owned electric and gas utilities, solid waste landfills, and major airports commonly accounted for?
Enterprise Funds
148
What are the 5 types of governmental funds?
1. The General Fund 2. Special Revenue Funds 3. Capital Projects Funds 4. Debt Service Funds 5. Permanent Funds
149
What is a characteristic of governmental fund accounting and financial reporting?
The inclusion of only financial assets and related liabilities
150
Where are mass transit systems, civic centers, toll roads, and state lotteries typically accounted?
Enterprise Funds
151
Most governments use ____ to maintain accounting controls over resources that are restricted for a particular capital asset purpose.
Capital Projects Funds
152
Provides uniform minimum national standards of and guidelines for annual financial reporting to groups and persons outside the government.
GAAP
153
The levy and collection of property taxes for general operations of a city.
General Fund
154
The basic financial statements must be accompanied by certain ____ to meet the minimum requirements for a general purpose external financial report.
Required Supplementary Information (RSI)
155
Bond redemption Fund (to account for cash and investments that are to be used to repay outstanding bonds) are accounted for in \_\_\_.
Debt Services Fund
156
All governments with general government activities will have ___ general fund(s).
One
157
Funds established to account for and report financial resources that are restricted committed, or assigned to expenditures for capital outlays including the acquisition or construction of capital facilities and other capital assets.
Capital Projects Funds
158
Governments purchase many smaller general capital assets - for example, police cars and office equipment - that typically are accounted for in the \_\_\_.
General Fund
159
Some governments are legally required by bond covenants to accumulate resources in a ____ to repay general long term debt principal and interest.
Debt Services Fund
160
Business accounting systems must provided \_\_\_.
data for both GAAP reporting and income tax reporting
161
The _____ is used to account for and report all financial resources not accounted for and reported in another fund.
General Fund
162
Bridge Construction Funds (to account for the proceeds from the sale of bonds) are accounted for in \_\_\_.
Capital Projects
163
All of the following are considered governmental funds except: A. A special revenue fund B. Capital Projects Fund C. Permanent Fund D. Internal Services Fund
D. Internal Service Fund
164
The operations of a municipal swimming pool with debt secured soley by charges to users should be accounted for in \_\_\_\_.
Enterprise Fund
165
The state of Wisconsin established the local government pooled investment fund to account for monies that local governments voluntarily send the state to manage and to invest for the local government's benefit. What type of fund is this?
Investment Trust Fund
166
Federal Fund (to account for federal construction grant proceeds) are accounted for in \_\_\_.
Capital Projects
167
Funds that are generally used to account for the sources, uses, and balances of a government's general financial resources and any related deferred outflows and deferred inflows.
Governmental Funds
168
Today, the _____ is often the largest industry within a state, and ____ often houses the biggest business in a town.
State Government; City Hall
169
\_\_\_\_\_ accounting is the most distinctive feature of governmental accounting.
Fund
170
The prroprietary funds and fiduciary funds are used to account for _____ and \_\_\_\_.
government organizations; relationships that are similar to those in the private sector
171
Enterprise Funds are classified as \_\_\_.
Proprietary Funds
