Question

Multiple Choice Questions
1. The City of Bacon holds cash of $820,000 that was received from the issuance of a bond and, according to the contract, must be spent for the construction of a new elementary school. The city also has $60,000 in supplies. How should the fund balance be reported?
a. Restricted-$880,000
b. Nonspendable-$60,000 and restricted-$820,000
c. Nonspendable-$60,000 and committed-$820,000
d. Nonspendable-$60,000 and assigned-$820,000

2. For component units, what is the difference in discrete presentation and blending?
a. A blended component unit is shown to the left of the statements; a discretely presented component unit is shown to the right.
b. A blended component unit is shown at the bottom of the statements; a discretely presented component unit is shown within the statements like a fund.
c. A blended component unit is shown within the statements like a fund; a discretely presented component unit is shown to the right.
d. A blended component unit is shown to the right of the statements; a discretely presented component unit is shown in completely separate statements.

3. A government reports that its public safety function had expenses of $900,000 last year and program revenues of $200,000 so that its net expenses were $700,000. On which financial statement is this information presented?
a. Statement of activities.
b. Statement of cash flows.
c. Statement of revenues and expenditures.
d. Statement of net assets.

4. Government-wide financial statements make a distinction between program revenues and general revenues. How is that difference shown?
a. Program revenues are offset against the expenses of a specific function; general revenues are assigned to governmental activities and business-type activities in general.
b. General revenues are shown at the top of the statement of revenues and expenditures; program revenues are shown at the bottom.
c. General revenues are labeled as operating revenues; program revenues are shown as miscellaneous income.
d. General revenues are broken down by type; program revenues are reported as a single figure for the government.

5. Which of the following is true about the statement of cash flows for the proprietary funds of a state or local government?
a. The indirect method of reporting cash flows from operating activities is allowed although the direct method is recommended.
b. The structure of the statement is virtually identical to that of a for-profit business.
c. The statement is divided into four separate sections of cash flows.
d. Amounts spent on capital assets are reported in a separate section from amounts raised to finance those capital assets.

6. Which of the following is most likely to be true about the financial reporting of a public college or university?
a. It resembles the financial reporting of private colleges and universities.
b. It will continue to use its own unique style of financial reporting.
c. It resembles the financial reporting made by a proprietary fund within the fund-based financial statements for a state or local government.
d. It will soon be reported using a financial statement format unique to the needs of public colleges and universities that GASB is scheduled to create.



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  • CreatedOctober 04, 2014
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