Multiple Choice. Choose the best answer. 1. Which of the following fund type(s) uses the accrual basis

Question:

Multiple Choice. Choose the best answer.
1. Which of the following fund type(s) uses the accrual basis of accounting?
a. Special revenue.
b. Internal service.
c. Pension trust.
d. Both b and c.
2. Which of the following items would generally be reported as a program revenue in the Governmental Activities column of the government-wide statement of net assets?
a. Fines and forfeits.
b. Property taxes.
c. Sales taxes.
d. Interest and penalties.
3 Which of the following fund type(s) utilizes the modified accrual basis of accounting?
a. Enterprise.
b. Permanent.
c. Agency.
d. Both b and c.
4. When a general obligation bond is sold at a premium, the premium should be reported:
a. In the Governmental Activities column of the government-wide statement of net assets.
b. In the for governmental funds.
c. In the Business-type Activities column of the government-wide statement of net assets.
d. Premium on bonds sold is not reported in the of a government.
5. A general capital asset with a book value of $1,300 was sold for $1,275. Which of the following properly reflects the reporting of the sale?
a. The cash proceeds of the sale would be reported as an other financing source on the General Fund€™s statement of revenues, expenditures, and changes in fund balance.
b. The loss on the sale would be reported in the Governmental Activities column of the government-wide statement of activities.
c. The cash proceeds of the sale would be reported in the Business-type Activities column of the government-wide statement of activities.
d. Both a and b.
6. The members of the Library Board of the City of Fayetteville are appointed by the City of Fayetteville City Council, which has agreed to finance any operating deficits of the library. Under these conditions:
a. The city is a primary government.
b. The library Es a component unit.
c. Financial information of the library should be reported as part of the reporting entity by discrete presentation.
d. All of the above.
7. Debt service for a general obligation bond would be reported in a (an):
a. Enterprise fund.
b. Private-purpose trust fund,
c. Debt service fund.
d. Permanent fund.
8. The comprehensive annual financial report (CAFR) of a governmental reporting entity should contain a statement of revenues, expenditures, and changes in fund balances for:

Governmental Proprietary Funds Funds Yes No a. b. Yes Yes Yes No d. No No

9. The comprehensive annual financial report (CAFR) of a governmental reporting entity should contain a statement of cash flows for:

Multiple Choice. Choose the best answer. 1. Which of the

10. The activities of a central data processing department that charges for data processing services it provides to other departments of a certain city should be recorded in:
a. An enterprise fund.
b. A special revenue fund.
c. The General Fund.
d. An internal service fund.

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