Multiple Choice
1. To what does basis of accounting refer?
a. whether an entity is trying to measure the excess of inflows over outflows
b. how much cash an entity received in a particular reporting period
c. the tim
...
Multiple Choice
1. To what does basis of accounting refer?
a. whether an entity is trying to measure the excess of inflows over outflows
b. how much cash an entity received in a particular reporting period
c. the timing of recognition of assets, liabilities, revenues, and
expenditures/expenses in financial statements
d. the ownership of the assets, liabilities, and equities reported in a balance
sheet
Answer: c
2. Governmental accounting normally does not
a. use separate funds to account for various activities
b. incorporate budgetary accounts into the accounting system
c. measure the amount of profit earned during a fiscal year
d. focus on flows of current financial resources
Answer: c
3. In governmental accounting, a fund is best defined as:
a. a sum of cash set aside to attain certain objectives
b. a fiscal entity that has both financial and capital resources
c. a fiscal entity that has cash resources only
d. a fiscal and accounting entity with a self-balancing set of accounts
Answer: d
4. Which of the following funds all use the current financial resources measurement
focus?
a. Debt Service Fund, Special Revenue Fund, and Capital Projects Fund
b. General Fund, Debt Service Fund, and Internal Service Fund
c. Debt Service Fund, Investment Trust Fund, and Capital Projects Fund
d. General Fund, Debt Service Fund, and Pension Trust Fund
Answer: a
5. The three broad categories of funds used by governmental entities are:
a. Governmental, Proprietary, and Fiduciary
b. Unrestricted, Partially Restricted, and Fully Restricted
c. General, Special, and Fiduciary
d. General, Enterprise, and Agency
Answer: a
6. Within a fund, which of the following results from using the current financial
resources measurement focus?
a. capital assets will be depreciated
b. property taxes will be recognized on the cash basis of accounting
c. a liability must be reported for unsettled claims, provided payment
ultimately will be made
d. long-term assets and liabilities will not be recorded in the fund
Answer: d
7. Which of the following funds all use the economic resources measurement focus?
a. Enterprise Fund, Special Revenue Fund, and General Fund
b. Internal Service Fund, Pension Trust Fund, and Enterprise Fund
c. Debt Service Fund, Internal Service Fund, and Pension Trust Fund
d. Enterprise Fund, Internal Service Fund, and Capital Projects Fund
Answer: b
8. Which basis of accounting is used by funds that have a current financial resources
measurement focus?
a. full accrual basis
b. cash basis
c. modified accrual basis
d. modified cash basis
Answer: c
9. Which of the following are fiduciary-type funds?
a. Pension Trust Fund, Agency Fund, and Permanent Fund
b. Investment Trust Fund, Special Revenue Fund, and Internal Service Fund
c. Agency Fund, Internal Service Fund, and Pension Trust Fund
d. Pension Trust Fund, Investment Trust Fund, and Agency Fund
Answer: d
[Show More]
