Question 1

10 out of 10 points
Which of the following is NOT an objective of financial reporting by
governmental entities as established by GASB?
Answer
Selected
Answer:
Correct
Answer:

Financial reporting should assist users in assessing the

management skills of top management.
Financial reporting should assist users in assessing the
management skills of top management.

Question 2
10 out of 10 points
Which of the following statements is NOT true?
Answer
Selected Answer:
All governmental entities engage in similar activities.
Correct Answer:
All governmental entities engage in similar activities.
Question 3
10 out of 10 points
Users of financial statements should be interested in information about
compliance with laws and regulations for which of the following reasons?
Answer
Selected Answer:
To determine all of the above.
Correct Answer:
To determine all of the above.
Question 4
10 out of 10 points
Which of the following is NOT a probable use a donor would make of the
external financial statements of a not-for-profit entity?
Answer
Selected
Answer:
Correct
Answer:

To determine the creditworthiness of the entity for investment

purposes.
To determine the creditworthiness of the entity for investment
purposes.

Question 5
10 out of 10 points
Which of the following liabilities would NOT be found in the fund balance sheet
of the General Fund of the City of Marmaduke?
Answer
Selected Answer:
Bonds payable, due in 5 years.
Correct Answer:
Bonds payable, due in 5 years.
Question 6
10 out of 10 points
For which of the following entities is fund accounting mandated?
Answer
Selected Answer:
City of New York.
Correct Answer:
City of New York.
Question 7
10 out of 10 points
Which of the following activities should the City of Highland account for in a
trust fund?
Answer
Selected
Answer:

General fund contributions received by the City pension

plan.

Correct Answer:
General fund contributions received by the City pension
plan.
Question 8
10 out of 10 points
Which of the following is NOT a governmental fund?
Answer
Selected Answer:
City Utilities Enterprise Fund.
Correct Answer:
City Utilities Enterprise Fund.
Question 9
10 out of 10 points
Which of the following is NOT considered Required Supplementary Information

(RSI)?
Answer
Selected Answer:
Notes to the financial statements.
Correct Answer:
Notes to the financial statements.
Question 10
10 out of 10 points
Which of the following would NOT be found in the Statement of Net Assets of
Teton City?
Answer
Selected Answer:
Receivable from special revenue fund.
Correct Answer:
Receivable from special revenue fund.
Question 11
10 out of 10 points
__________ is the responsibility of governments to justify that their actions in
the current period have complied with public decisions concerning the raising and
spending of public moneys in the short term.
Answer
Selected Answer:
Fiscal accountability.
Correct Answer:
Fiscal accountability.
Question 12
0 out of 10 points
In addition to government-wide statements, GASB Statement No. 34 requires
fund financial statements be included in the governments basic set of financial
statements. The basic fund financial statements that should be included for
fiduciary funds are
Answer
Selected
Answer:
Correct
Answer:
Question 13

the Balance Sheet and the Statement of Revenues, Expenditures,

and Changes in Fund Balance.
the Statement of Fiduciary Net Assets, and the Statement of
Changes in Fiduciary Net Assets.

10 out of 10 points
Under GAAP, property taxes levied in one fiscal period to finance the activities
of the following fiscal period are recognized as revenue in the fund financial
statements
Answer
Selected
Answer:

Correct
Answer:

in the year for which they are intended to finance the activities, if
collected within that period or within a period no greater than 60
days after the close of the fiscal year.
in the year for which they are intended to finance the activities, if
collected within that period or within a period no greater than 60
days after the close of the fiscal year.

Question 14
10 out of 10 points
A City levies a 2% sales tax that is collected for them by the State. Sales tax
must be remitted by the merchants to the State by the 20th
day of the month following the month in which the sale occurred. The State has a
policy of remitting sales taxes to the City within 30 days of collection by the
State. Cash received by the State related to sales tax is as follows:

sales

Amount received 1/20/00, applicable to December 1999

$ 50

sales

Amount received 2/20/00, applicable to January 2000

$ 15

sales

Amount received 3/20/00, applicable to February 2000

$ 10

Amount received during 2000 related to March-November 2000

sales
$190

sales

Amount received 1/20/01 for December 2000

$ 55

2001

Amount received 2/20/01 for January

$ 20

Amount received 3/20/01 for February

2001
$ 5
Assuming the City uses the same period to define available as the maximum
period allowable for property taxes, what amount should it recognize as sales tax

revenue in its government-wide financial statements for the fiscal year ended
12/31/00.
Answer
Selected Answer:
$270.
Correct Answer:
$270.
Question 15
10 out of 10 points
Under the accrual basis of accounting used by a governmental entity, investment
revenues for the current period should include
Answer
Selected
Answer:

Correct
Answer:

all interest and dividends received, all gains and losses on

securities sold and all changes in market values on securities held
in the portfolio at year-end.
all interest and dividends received, all gains and losses on
securities sold and all changes in market values on securities held
in the portfolio at year-end.

Question 16
10 out of 10 points
Under the accrual basis of accounting, derived nonexchange revenues are
recognized by a governmental entity as revenue
Answer
Selected Answer:
when the underlying exchange transaction occurs.
Correct Answer:
when the underlying exchange transaction occurs.
Question 17
10 out of 10 points
On July 1 Gilbert County bought computer equipment for use in the
administrative offices of the County. The equipment has an estimated useful life
of three years and salvage of $10,000. Gilbert County has a 6/30 fiscal yearend. Assuming that the County maintains its books and records in a manner that
facilitates the preparation of fund financial statements, the $70,000 cost of this
equipment would require which of the following entries?
Answer
Selected Answer:
Debit Expenditures $70,000; Credit Cash $70,000

Correct Answer:
Debit Expenditures $70,000; Credit Cash $70,000
Question 18
10 out of 10 points
Pocahontas School District, an independent public school district, financed the
acquisition of a new school bus by signing a note for $90,000 plus interest on the
unpaid balance at 6%. Annual principal payment of $30,000, plus interest, are
due each July 1. Assuming that the District maintains its books and records in a
manner that facilitates the preparation of the government-wide financial
statements, the appropriate entry at the date of acquisition is
Answer
Selected Answer:
Debit Fixed Assets $90,000; Credit Notes Payable $90,000.
Correct Answer:
Debit Fixed Assets $90,000; Credit Notes Payable $90,000.
Question 19
10 out of 10 points
The amount of pension expenditures that should be recognized in the General
Fund financial statements during the current year is
Answer
Selected
Answer:
Correct
Answer:

The amount paid plus the amount that will be paid with
available expendable financial resources.
The amount paid plus the amount that will be paid with
available expendable financial resources.

Question 20
10 out of 10 points
Assume that the City of Juneau maintains its books and records to facilitate the
preparation of its fund financial statements. The City pays its employees biweekly on Friday. The fiscal year ended on Wednesday, June 30. Employees
had been paid on Friday, June 25. The employees paid from the General Fund
had earned $120,000 on Monday, Tuesday, and Wednesday (June 28, 29, and
30). They will earn $80,000 on Thursday and Friday (July 1 and 2). What entry,
if any, should be made on June 30?
Answer
Selected
Answer:
Correct

Debit Expenditures $120,000; Credit Wages and Salaries

Payable $120,000.

Answer:

Debit Expenditures $120,000; Credit Wages and Salaries

Payable $120,000.