Question

1. Oak Township issued the following bonds during the year:
Bonds to acquire equipment for a vehicle repair service that is accounted for in an internal service fund . $3,000,000
Bonds to construct a new city hall . $8,000,000
Bond to improve its water utility, which is accounted for in an enterprise fund . $9,000,000
The amount of debt to be reported in the general fund is
a. $0
b. $3,000,000
c. $8,000,000
d. $20,000,000

2. Oak Township should report depreciation in which of the following funds:
a. General fund
b. Special revenue fund
c. Internal service fund
d. Capital projects fund

3. Assuming that Bravo County receives all of its revenues from unassigned property taxes, it is most likely to account for the activities of its police department in its
a. Police department fund
b. Police enterprise fund
c. Property tax fund
d. General fund

4. The city of Alpine incurred the following costs during the year in its property tax collection department:
Purchase of computer equipment . $ 10,000
Salaries and wages . $400,000
Purchase of electricity from the city-owned electric utility . $ 40,000
Purchase of supplies, all of which were used during the year . $ 10,000
As a consequence of these transactions, the amount that Alpine should report as expenditures in its general fund is
a. $400,000
b. $410,000
c. $450,000
d. $460,000

5. Grove City received the following resources during the year:
Property taxes . $50,000,000
A federal grant to acquire police cars . $ 400,000
Hotel taxes, which must be used to promote tourism . $ 3,000,000
Proceeds of bonds issued to improve the city’s electric utility . $12,000,000
The amount that the city should most likely report as revenues in its special revenue funds is
a. $400,000
b. $3,000,000
c. $3,400,000
d. $15,400,000
e. $65,400,000

6. A city issues $20 million of general obligation bonds to improve its streets and roads. In accordance with the bond covenants it committed $1 million to help ensure that it is able to meet its first payment of principal and $100,000 for its first payment of interest. The amount of liability that the city should report in its debt service fund is
a. $0
b. $18.9 million
c. $19 million
d. $20 million

7. During the year, Brian County collects $12 million of property taxes on behalf of Urton Township. Of this amount it remits $10 million to the township, expecting to remit the balance shortly after the end of its fiscal year. The amount of revenue that the county should report is
a. $0
b. $2 million
c. $10 million
d. $12 million

8. The City of Round Lake receives a contribution of $20 million. The donor stipulates that the money is to be invested. The principal is to remain intact, and the investment proceeds are to be used to support a city-owned nature center. The city should report the contribution in a
a. Special revenue fund
b. Permanent fund
c. Fiduciary fund
d. Agency fund

9. A city receives a $30 million contribution. The donor stipulates that the money is to be invested. The principal is to remain intact and the investment proceeds are to be used to provide scholarships for the children of city employees. The contribution should be reported as revenue of a
a. Special revenue fund
b. Permanent fund
c. Fiduciary fund
d. Agency fund

10. The Summerville Preparatory School (a private school) receives a donation of $14 million. The donor stipulates that the entire amount must be used to construct a new athletic field house. The school should classify the donation as
a. Unrestricted
b. Temporarily restricted
c. Permanently restricted
d. Semi-restricted

11. Who may impose constraints for the use of a committed fund balance?
a. The government’s highest level of decision-making authority
b. Creditors or bondholders
c. A majority vote of the finance committee
d. Any government official

12. Under GASB Statement No. 54, what is the hierarchy classification of fund balances?
a. Spendable, unrestricted, committed, assigned, unassigned
b. Nonspendable, restricted, committed, assigned, unassigned
c. Nonspendable, unrestricted, committed, assigned, unassigned
d. Spendable, restricted, uncommitted, assigned, unassigned



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  • CreatedAugust 13, 2014
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