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ACC 548 Sample Final Examination

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Question;1. What is the effect on the General Funds? unreserved fund balance when capital assets are purchased during a year from General Fund revenues?? There is no effect, since one asset (cash) is replaced by another (capital asset)? Unreserved fund balance is increased? None of the above, capital assets must be purchased through a capital projects fund? Unreserved fund balance is decreased2. When payrolls and other liabilities are incurred and must be paid before substantial amounts of cash will be collected, what type of short-term note is desirable and secured by a government's power to tax?? Tax Budget Note Payable? Tax Relief Note Payable? Tax Anticipation Note Payable? Tax Encumbrances Note Payable3. The City of Lonesome Pines levied property taxes for the fiscal year ended June 30, 2009 in the amount of $8,000,000. It is estimated that 2% will not be collected. During the year ended June 30, 2009, $7,200,000 in property taxes were collected. It is estimated that $400,000 will be collected during the next 60 days, $240,000 will be collected after 60 days and $160,000 will not be collected. What is the maximum amount Lonesome Pines can recognize as property tax revenue for the fiscal year ended June 30, 2009 in its Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances, assuming there were no unpaid property taxes at the end of the previous year?? $7,600,000? $7,200,000? $8,000,000? $7,840,0003. To compute the net debt per capita, a user of financial statements would need to look at (in the CAFR):? The debt in the governmental funds Balance Sheet, the amount available in the government-wide Statement of Net Assets and the population from the statistical section? The debt and the amount available to pay that debt in the governmental funds Balance Sheet and the population from the statistical section? The debt in the government-wide Statement of Net Assets, the amount available to pay that debt in the governmental funds Balance Sheet and the population from the statistical section? All three items from the government-wide Statement of Net Assets5. Governmental units use which fund type to account for services provided to the general public on a user-charge basis?? Permanent fund? General fund? Enterprise fund? Internal service fund6. According to NACUBO guidelines, what is the correct treatment for recognizing summer school revenues and expenses when a college's fiscal year ends on June 30?? Recognize the entire amount of revenues and expenses in the year in which the term began? Apportion the revenues and expenses to the two fiscal years, following accrual accounting practices similar to those employed by commercial enterprises? Recognize expenses in the year in which they were billed and the expenses in the year in which they were incurred? Recognize the entire amount of revenues and expenses in the year in which the term is predominantly conducted7. Under GASB rules for the financial reporting entity:? component units are included if the primary government is financially accountable for their operations? component units must be reported in columns (discrete presentation) separate from the funds of a primary government? blended and discretely presented component units are to be reported in government-wide financial statements but not in fund financial statements? bounties are component units of the state government8In its Statement of Net Assets, a government reported: Assets of $90 million, including $30 million in capital assets (net) and liabilities of $50 million, including long-term debt of $15 million, all related to capital asset acquisition. The government also reported $5 million of net assets that were restricted for payment of debt service. The government's unrestricted net assets would be reported as:? $20 million? $30 million? $25 million? $10 million9A government had the following transfers reported in its governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances: (1) a transfer from the General Fund to a debt service fund in the amount of $l,000,000, (2) a transfer from the General Fund to an enterprise fund in the amount of $1,200,000, and (3) a transfer from the General Fund to an internal service fund in the amount of $400,000. The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be:? $1,400,000? $2,600,000? $1,200,000? $800,00010A local government was awarded a federal grant in the amount of $600,000 to provide for a summer employment program for young people. The grant was a reimbursement grant and was awarded on April 30, 2009. The local government expended the resources as follows: June, 2009, $220,000, July 2009, $200,000, August, 2009, $180,000. The federal government provided the funds the following months. The local government would recognize revenues for the fiscal year ended June 30, 2009 in which amount?? $600,000? $420,000? $ - 0 ?? $220,00011A governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances reported expenditures of $30 million, including capital outlay expenditures of $2 million. Capital assets for that government cost $70 million, including land of $10 million. Depreciable assets are amortized over 20 years, on average. The reconciliation from governmental changes in fund balances to governmental activities changes in net assets would reflect:? an increase of $ l million? a decrease of $1 million? an increase of $2 million? a decrease of $3 million12What type of serial bond schedules an increase each year in annual principal repayment approximately equivalent to the decrease in interest payments?? Regular? Annuity? Irregular? Deferred13GASB Statement 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, applies to all of the following investment types EXCEPT:? investments of pension funds? external investment pools? open-end mutual funds? debt securities14Which organization promulgates the Government Auditing Standards?? The U.S. Government Accountability Office? The U.S. Office of Management and Budget? The American Institute of Certified Public Accountants? The Securities and Exchange Commission15Which of the following choices regarding the government-wide Statement of Net Assets is TRUE?? The government-wide Statement of Net Assets reflects capital assets, net of accumulated depreciation, for both governmental and business-type activities? The government-wide Statement of Net Assets must be prepared in a classified format, that is, both assets and liabilities must be separated between current and long-term categories? A reporting entity (primary government plus component units) total column is required? The government-wide Statement of Net Assets includes all resources entrusted to the government, including governmental, proprietary and fiduciary16Under GASB rules for the financial reporting entity:? blended and discretely presented component units are to be reported in government-wide financial statements but not in fund financial statements? counties are component units of the State Government? component units must be reported in columns (discrete presentation) separate from the funds of a primary government? component units are included if the primary government is financially accountable for their operations17A public college had tuition and fees of $20,000,000. Scholarships, for which no services were required, amounted to $2,000,000. Graduate assistantships, for which services were required, amounted to $1,000,000. The amount to be reported by the public college as net tuition and fees would be:? $20,000,000? $19,000,000? $17,000,000? $18,000,00018A donor pledged $100,000 to the fund raising drive of a local government to assist its police officers in obtaining the latest technology. The pledge was made on July 16, 2008 but was conditioned on the government raising an additional $100,000 from other donors. By the fiscal year-end of June 30, 2009, the local government had raised only $5,000 from other donors. What entry would be made for the initial pledge by the local government during the year ended June 30, 2009?? Debit a receivable and credit a revenue? Debit a receivable and credit Fund Balance? Debit a receivable and credit deferred revenues, a liability? No entry19The FASB has the authority to set accounting standards for all of the following organizations EXCEPT:? for profit proprietary schools? private colleges? educational foundations established to support a private college or university? public colleges20The City of Springfield has three pension plans: a locally administered police plan for which it is trustee, a statewide cost sharing plan and a statewide agency plan. The city would include in its CAFR financial statements for:? all three plans? both statewide plans? the locally administered plan plus the statewide agency plan? the locally administered plan only21Proprietary funds utilize what basis of accounting?? Accrual? Modified accrual? Budgetary? Cash22If taxes or special assessments are levied by the General Fund and then-transferred to the debt service fund, they are:? recorded as revenues of the debt service fund? recorded as an expense and voucher payable by the general fund and are recorded as a revenue and receivable by the debt service fund.? included as transfers out in the General Fund but are not budgeted as revenue in that fund? included in the revenues budget of the general fund and budgeted by that fund as transfers out to the debt service fund23Ford County levies for its General Fund $1,000,000 in property taxes. In addition, the county is responsible for collecting $2,000,000 in property taxes for the consolidated school district and $500,000 in property taxes for a town within the county. 2% of all taxes levied are expected to be uncollectible. When recording the levies in an agency fund, what amount would Ford County record as Taxes Receivable for Other Governments ? Current and Due to Other Governments?? $3,430,000? $3,500,000? $2,450,000? $2,500,00024Which part of the financial section of the CAFR is considered "Required Supplementary Information?"? Find Financial Statements? Government-wide Financial Statements? Management?s Discussion and Analysis? Auditor?s Report25All the following choices would be considered a special-purpose government for financial reporting purposes EXCEPT:? a county board of supervisors? a public school system? an art museum? a public hospital26The fund statements for governmental funds are presented using:? Economic Resources Measurement focus and the Accrual Basis of Accounting? Current Financial Resources Measurement focus and the Modified Accrual Basis of Accounting? Current Financial Resources Measurement focus and the Accrual Basis of Accounting? Economic Resources Measurement focus and the Modified Accrual Basis of Accounting27What is a Special Revenue Fund?? A fund used to account for all revenue transactions of a governmental unit that are not accounted for in another fund? A fund created to account for all resources and revenues to be used for the construction or acquisition of capital assets? A fund used to account for revenues from specific taxes or other revenue sources that by law are designated to finance particular activities of the government other than capital projects? A fund used to account for revenues from general taxes or other revenue sources that by law are designated to finance general activities of the government28In which fund type is interest on long term debt typically not accrued, yet is recognized as an expenditure in the year in which interest is legally due?? Debt service fund? Pension fund? Enterprise fund? Internal service fund29Each of the following is one of the four classes into which nonexchange transactions apply in accordance with GASB Statement No. 33 EXCEPT:? imposed nonexchange revenues? derived tax revenues? voluntary nonexchange transactions? mandatory exchange transactions30Which of the following choices regarding the proprietary fund financial statements is TRUE?? Statements include the Statement of Net Assets (or Balance Sheet), Statement of Revenues, Expenses and Changes in Fund Net Assets and Statement of Cash Flows? The Statement of Net Assets (or Balance Sheet) reflects equity as contributed equity and retained earnings? Normally, reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements? The Statement of Cash Flows may be prepared using either the direct or the indirect methods31Under the terms of the Single Audit Act and its amendments, what percentage of federal awards expenditures must be selected for audit?? High Risk Auditee: 50%, Low Risk Auditee: 25%? High Risk Auditee: 100%, Low Risk Auditee: 50%? High Risk Auditee: 100%, Low Risk Auditee: 25%? High Risk Auditee: 50%, Low Risk Auditee: 0%32When would a special revenue fund be deemed to have satisfied the eligibility requirement of a reimbursement-type federal grant under GASB Statement 33?? When a plan for use of the funds has been developed and approved? Only as work is completed for a project? Only after work is completely finished for the project? When work has started for the project33The City of Greenville had a balance in the Reserve for Encumbrances account at the end of 2008 in the amount of $30,000. During 2009, all purchase orders related to the $30,000 were filled and the invoice amount was $30,500. Which of the following would be TRUE regarding the Statement of Revenues, Expenditures and Changes in fund balances for 2009? (assume encumbrances do not lapse)? The amount shown for expenditures would not include items related to orders placed in 2008? The amount shown for expenditures would include the $30,500? The amount shown for expenditures would include only the $500? The amount shown for expenditures would include only the $30,00034In 2008 a faculty member at a private college received a grant from the National Science Foundation to conduct basic research on tree frogs in the amount of $350,000. Expenses associated with the grant totaled $225,000 in 2009. In the Statement of Activities for 2009, the college should show:? revenues of $225,000 and expenses of $225,000 in Temporarily Restricted Net Assets? expenses of $ 225,000 in Unrestricted Net Assets and a decrease in Temporarily Restricted Net Assets of $ 225,000? revenues of $350,000 and expenses of $225,000 in Temporarily Restricted Net Assets? revenues of $225,000 and expenses of $225,000 in Unrestricted Net Assets35Funds that are used to account for activities similar to those often engaged in by profit-seeking businesses are:? capital project funds? agency funds? special revenue funds? proprietary funds36Assume a government is determined to be a special-purpose government engaged in business-type activities only. Which of the following financial statements would be required?? Statement of Net Assets, Statement of Activities, Statement of Cash Flows? Statement of Net Assets, Statement of Revenues, Expenses and Changes in Net Assets, Statement of Cash Flows? Balance Sheet, Statement of Revenues, Expenditures and Changes in end Balances? Statement of Net Assets and Statement of Activities37Which of the following accounts of a governmental unit is credited to close it at the end of the fiscal year?? Reserve for Encumbrances? Appropriations Control? Encumbrances Control? Other Financing Sources-Transfers In38What are the three major sections of the Comprehensive Annual Financial Report?? Introductory Section, Financial Section, Management Discussion and Analysis.? Introductory Section, Financial Section, Reporting Infrastructure.? Introductory Section, Financial Section, Statistical Section.? Introductory Section, Financial Section, Budgetary Comparison.39What type of fund is used when resources are provided mainly through business like transactions to parties external to the government?? Internal Service Funds? Enterprise Funds? Agency Funds? Capital Projects Funds

 

Paper#41347 | Written in 18-Jul-2015

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