Term
Combining Enterprise Fund statements in the CAFR are required to include at a minimum:
A. Each individual Enterprise Fund
B. Each individual major Enterprise Fund
C. Each individual nonmajor Enterprise Fund
D. Each individual Enterprise Fund used to account for activities that are required to be reported in Enterprise Funds |
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Definition
| C. Each individual nonmajor Enterprise Fund |
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Term
The city of Philaburg arranged for a 10-year, $40 million loan to finance construction of a toll bridge over the Tradewater River. If the toll bridge is accounted for as an Enterprise Fund activity and a certain portion of the tolls collected is required to be set aside for maintaining the bridge, these resources should be accounted for in:
A. A Debt Service Fund
B. The General Fund
C. The Toll Bridge Enterprise Fund
D. A Capital Projects Fund
E. None of the above |
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Definition
| C. The Toll Bridge Enterprise Fund |
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Term
Which of the following activities is not commonly accounted for in an Internal Service Fund?
A. Self-insurance
B. Central garage
C. Landfill operations
D. Warehouse facility
E. All of the above |
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Definition
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Term
What method of accounting does GAAP require for inventories in an Internal Service Fund?
A. Consumption method
B. Purchases method
C. Acquisition method
D. All of the above are acceptable accounting methods
E. Items A and B only |
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Definition
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Term
The city of Silerville operates a water authority that sells water to city residents. Each new customer is required to pay a $75 deposit at the time of hookup. The deposit cannot be spent, but is returned with interest if the customer maintains a satisfactory payment record for two years. The city should record these deposits:
A. In a Private-Purpose Trust Fund
B. As restricted cash and a liability payable from restricted assets in the Water Fund
C. As unrestricted cash and a long-term liability in
D. As unrestricted cash and a liability payable from restricted assets in the General Fund
E. None of the above |
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Definition
| B. As restricted cash and a liability payable from restricted assets in the Water Fund |
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Term
Which of the following statements must be prepared for Agency Funds as part of a government’s Basic Financial Statements?
A. Statement of changes in net assets
B. Statement of revenues, expenditures, and changes in fund balances
C. Statement of net assets
D. Statement of changes in agency fund assets and liabilities
E. Both C and D |
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Definition
| C. Statement of net assets |
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Term
Internal Service Funds are required to be reported in the basic financial statements:
A. By major fund
B. By fund type
C. As governmental funds
D. As either governmental or proprietary funds, depending on the nature of the Internal Service Fund |
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Definition
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Term
Employer governments must measure their annual pension contribution:
A. By using a standardized approach
B. In accordance with certain guidelines, but not in a standardized way
C. By using the unit credit method
D. None of the above |
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Definition
| B. In accordance with certain guidelines, but not in a standardized way |
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Term
In the government-wide financial statements, activities of an Internal Service Fund are:
A. Reported either as governmental activities or business-type activities, depending on the fund’s primary customer base
B. Never reported as either governmental activities or business-type activities
C. Always reported as business-type activities
D. Always reported as governmental activities |
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Definition
| A. Reported either as governmental activities or business-type activities, depending on the fund’s primary customer base |
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Term
GAAP require which of the following statements to be prepared for an Internal Service Fund?
A. Statement of net assets
B. Statement of budgetary compliance
C. Statement of cash flows
D. All of the above are required statements
E. Items A and B only
F. Items A and C only |
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Definition
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Term
Employer governments must measure their annual pension contribution:
A. By using a standardized approach
B. In accordance with certain guidelines, but not in a standardized way
C. By using the unit credit method
D. None of the above |
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Definition
| B. In accordance with certain guidelines, but not in a standardized way |
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Term
Which of the following transactions would not be allowed in an Internal Service Fund?
A. The purchase of capital items
B. Borrowing from another fund
C. Transfers from other funds
D. None of the above |
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Definition
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Term
The accounting and financial reporting concepts are virtually the same for which of the following fund types?
A. Permanent Funds and Agency Funds
B. Permanent Funds and Pension Trust Funds
C. Pension Trust Funds and Investment Trust Funds
D. Private-Purpose Trust Funds and Permanent Funds
E. Enterprise Funds and Permanent Funds |
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Definition
| C. Pension Trust Funds and Investment Trust Funds |
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Term
Which method of cash flow reporting is used to report operating activities?
A. Indirect method
B. Either the indirect or direct method, depending on the method chosen for the government’s Enterprise Funds
C. Cash flow reporting is optional for Internal Service Funds
D. Direct method |
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Definition
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Term
When a Tax Agency Fund is used, the governmental funds in which the taxes should ultimately be accounted for should report tax revenues:
A. When levied
B. When received by year end or not more than 60 days thereafter
C. In the year for which the taxes are levied or later
D. When both B and C are true |
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Definition
| D. When both B and C are true |
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Term
Which of the following accounts typically would be used by an Agency Fund?
A. Notes receivable
B. Bonds Payable
C. Revenue
D. Cash |
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Definition
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Term
Depreciation expense on all of an Enterprise Fund’s capital assets must be reported as expenses in the fund’s operating statement. However, expenditures to maintain certain capital assets may be expensed in lieu of reporting depreciation. These capital assets include:
A. Infrastructure capital assets that meet the modified approach requirements established by GASB Statement No. 34
B. Buildings
C. Equipment
D. Only infrastructure capital assets constructed or acquired prior to July 1, 1980
E. Infrastructure capital assets donated to the government |
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Definition
| A. Infrastructure capital assets that meet the modified approach requirements established by GASB Statement No. 34 |
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Term
Enterprise Fund resources of $3,000,000 are paid yearly to the General Fund. If these payments are payments in lieu of taxes (not payments for services), they should be recorded in the Enterprise Fund as:
A. Expenses
B. Reductions of revenues
C. Transfers out
D. Expenditures
E. Other Financing Uses |
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Definition
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Term
Enterprise Fund transfers are reported in an Enterprise Fund’s operating statement for:
A. “free” services provided to other departments
B. Capital assets transferred in from other governments without compensation
C. Interfund loans that are not to be repaid from available expendable financial resources
D. None of the above |
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Definition
| A. “free” services provided to other departments |
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Term
The fund equity of an Enterprise Fund could include any of the following except:
A. Invested in capital assets, net of related debt
B. Fund balance
C. Restricted net assets
D. Unrestricted net assets
E. All of the above |
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Definition
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Term
Which of the following statements about a Private-Purpose Trust Fund is false?
A. The principal in a Private-Purpose Trust Fund, similar to a Permanent Fund, must be nonexpendable in nature
B. The principal in a Private-Purpose Trust Fund may be either expendable or nonexpendable in nature
C. Private-Purpose Trust Funds are not reported in the government-wide financial statements
D. Items A and C are both false
E. Items B and C are both false |
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Definition
| A. The principal in a Private-Purpose Trust Fund, similar to a Permanent Fund, must be nonexpendable in nature |
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Term
Expenditures for an Agency Fund are recognized in the period in which:
A. The fund incurs a liability
B. The fund pays the amount owed for the expenditure
C. The expenditure is incurred
D. None of the above |
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Definition
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Term
Which of the following statements about a Pension Trust Fund Statement of Plan Net Assets is not true?
A. Investments are reported at fair value
B. Capital assets are reported
C. The actuarial present value of future benefits payable is reported as a liability, not as an equity component
D. All of the above are true |
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Definition
| C. The actuarial present value of future benefits payable is reported as a liability, not as an equity component |
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Term
Which of the following statements about accounting principles used in Enterprise Funds is false?
A. Enterprise Funds may adopt budgets on a basis of accounting contrary to GAAP
B. An Enterprise Fund’s statement of cash flows is prepared in the same format as a statement of cash flows for a private-sector entity
C. Management may choose whether or not to apply recent FASB statndards if they do not conflict with GASB standards
D. Governmental entities may choose to prepare either a statement of net assets or a balance sheet for an Enterprise Fund
E. GAAP does not require Enterprise Funds to legally adopt budgets |
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Definition
| B. An Enterprise Fund’s statement of cash flows is prepared in the same format as a statement of cash flows for a private-sector entity |
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Term
Which of the following statements is not required to be presented for an investment trust fund?
A. Statement of net assets
B. Statement of changes in net assets
C. Statement of cash flows
D. All of the above |
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Definition
| C. Statement of cash flows |
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Term
All Enterprise Fund transfers are reported in an Enterprise Fund’s operating statement:
A. Nonoperating revenues
B. Other Financing Sources
C. Special Items
D. None of the above |
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Definition
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Term
The long-term debt issued for a special assessment project for which the government is not obligated in any manner should be reported by the government in:
A. An Agency Fund
B. A Capital Projects Fund
C. A Debt Service Fund
D. The General Long-Term Liabilities accounts
E. None of the above |
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Definition
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Term
Which of the following activities would be least likely to be operated as and accounted for in an Enterprise Fund?
A. Town planning department
B. Sports stadium
C. Parking garage
D. Mass transit authority |
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Definition
| A. Town planning department |
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Term
Which of the following accounts would not typically be reported on the operating statement of an internal service fund?
A. Salaries and wages expense
B. Supplies expense
C. Depreciation expense
D. Maintenance expense
E. All of the above are typical expenses for internal service funds. |
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Definition
| E. All of the above are typical expenses for internal service funds. |
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Term
Which of the following statements must be prepared for Agency Funds?
A. Statement of changes in nets assets.
B. Statement of revenues, expenditures, and changes in fund balances.
C. Statement of net assets.
D. Statement of changes in agency fund assets and liabilities.
E. Both c and d. |
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Definition
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Term
Which of the following equity classifications is not commonly reported for an Internal Service Fund?
A. Retained earnings
B. Invested in capital assets, net of related debt
C. Restricted net assets
D. Unrestricted net assets
E. All of the above classifications are commonly reported for Internal Service Funds. |
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Definition
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