Question

Multiple Choice Questions
Identify the best answer for each of the following:
1. Both governmental funds and governmental activities include which of the following on their respective operating statements?
a. Revenues
b. Expenses
c. Depreciation expense
d. Fund balance

2. The government-wide Statement of Net Position would not include
a. Accounts payable.
b. Capital assets, net of accumulated depreciation.
c. Fund balance.
d. Unrestricted net position.

3. The government-wide Statement of Activities may report all of the following except
a. Indirect expenses.
b. Unallocated depreciation.
c. Transfers.
d. Deferred revenue.

4. Which of the following revenues would typically not be classified as a general revenue on the Statement of Activities?
a. Property taxes
b. Unrestricted grant
c. Unrestricted parking fines
d. Investment earnings on unrestricted investments

5. The governing board of the City of Chestnut Springs has decided to dedicate 25% of the fees generated by the city’s recycling program to drug enforcement activities. This revenue would be reported on the Statement of Activities as
a. Operating grants and contributions in the public safety function.
b. Charges for services in the public safety function.
c. Operating grants and contributions in the public works function.
d. Charges for services in the public works function.

6. GAAP require fiduciary activities to be reported
a. In the fund financial statements by fund type.
b. In the fund financial statements by major fund and in the government-wide financial statements as governmental activities.
c. In the fund financial statements by major fund.
d. In the fund financial statements by fund type and in the government-wide financial statements as fiduciary activities.

7. Which of the following topics would commonly be included in the MD&A?
a. Goals and objectives for the government’s various functions for the next fiscal year
b. A brief analysis of the local economic factors that affected the reporting period’s operating results
c. Plans for a tax increase planned for the next fiscal period
d. All of the above

8. GAAP require primary government total columns to be reported on which of the following basic financial statements?
a. Government-Wide Statement of Net Position if both governmental and business-type activities are reported
b. Balance Sheet for governmental funds if multiple major funds (and potentially non-major funds) are reported
c. Statement of Revenues, Expenditures, and Changes in Fund Balances for governmental funds if multiple major funds (and potentially nonmajor funds) are reported
d. All fiduciary fund financial statements

Questions 9 and 10 are based on the following scenario:
Carter County, like all other counties in the state, shares in the proceeds of a state-levied sales tax. The state requires all recipient counties to use the proceeds for capital improvements to local streets and highways. Carter County’s share for the current fiscal period was $105,000. Assume that the funds meet the availability criteria.
9. How would Carter County report these revenues in its government-wide financial statements?
a. $105,000 as governmental activities general revenues
b. $105,000 as operating grants and contributions in the public works function
c. $105,000 as capital grants and contributions in the public works function
d. $105,000 as governmental activities general revenues but reported separately from unrestricted grants

10. How would Carter County report these revenues in the governmental fund financial statements?
a. $105,000 as revenues in the General Fund
b. $105,000 as other financing sources in the General Fund
c. $105,000 as revenues in a Permanent Fund
d. $105,000 as other financing sources in a Permanent Fund



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  • CreatedOctober 25, 2014
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