Click here to have a similar A+ quality paper

Order Now

1.Not-for-profit health care organization financial statements include a a. Statement of Cash Flows b. Statement of Activities c. Statement of Revenues, Expenses, and Changes in Fund Balance d. Statement of Budget to Actual 2. Not-for-profit health care organization financial statements include a a. Statement of Net Assets b. Statement of Activities c. Statement of Operations d. Statement of Budget to Actual 3.A not-for-profit health care organization Statement of Operations displays the a. cash balance at the end of the year b. amount of operating income c. net cash used by operating activities d. classified net assets 4. When the Allowance for Doubtful Accounts is adjusted, the expense is charged to a. Charity Care b. Provision for Bad Debts c. Doubtful Account Expenses d. Reservation of Fund Equity 5.Public colleges and universities follow accounting standards issued by a. GASB b. FASB 6. c. AICPA d. NACUBO GASB Statement No. 35 requires governmental colleges and universities to a. follow the GASB Statement No. 34 financial reporting model b. produce a Statement of Operations c. use the 1995 AICPA Audits of Colleges and Universities financial reporting model d. only use the modified approach for infrastructure assets 7. A college or university is classified as governmental if a. the governing board is appointed by the c. the governing board is publicly elected college president b. the university pays corporate income taxes d. all of the above 8. The Coleville Community College can levy taxes, issue tax-exempt debt and the governing board is publicly elected. The Coleville Community College is a a. private not-for-profit organization b. governmental organization c. business-type activity d. both b and c are correct 9. Governmental colleges and universities implementing GASB Statements No. 34 and 35 will a. no longer use funds c. use invested in capital assets net of related debt, restricted and unrestricted net asset classes b. use restricted, unrestricted and temporarily d. none of the above restricted net asset classes 10.Colleges and universities may elect to record transactions directly into net asset classes rather than a. the Statement of Activities b. the Statement of Operations c. funds d. liabilities 11. Governmental colleges and universities display student financial aid as a(n) a. discount b. expense c. it is not displayed d. expenditure 12.A public college provides scholarship assistance of $8,000,000 to its students. When the students register for classes the college applies $7,500,000 of the financial aid to their tuition and fee bills of $10,000,000 and students receive $500,000 in cash. The amount that will be recognized as tuition and fee revenue by the college is a. $10,000,000 b. $2,000,000 c. $2,500,000 d. $9,500,000 13. A public university bills $80,000,000 in tuition and fees and provides $23,000,000 in financial aid. The university refunds in cash $800,000 of this financial aid directly to students. What amount will the university report as tuition and fee revenue? a. $80,000,000 b. $79,200,000 c. $57,000,000 d. $57,800,000 14. A public college has tuition and fee billings of $30,000,000 and provides $6,000,000 in financial aid to students. The students apply $5,200,000 of this financial aid to their tuition and fee bill and take the excess in cash. What amount is reported as an expense for financial aid? a. $6,000,000 b. $5,200,000 c. $800,000 d. $6,800,000 15.A public college and university have tuition and fee revenue of $18,000,000 for the summer semester that bridges two fiscal years. Sixty percent of the instruction takes place in the next fiscal year and the university decides to allocate the revenue on that basis. The journal entry to record this transaction in the current fiscal year will include a. $10,800,000 in revenue c. $10,800,000 in deferred revenue b. $18,000,000 in revenue d. $7,200,000 in deferred revenue 16.A patron gets a call from the Metropolitan Opera Society and pledges $1,000 to be used for general operations. The Metropolitan Opera Society will record a. Contribution Revenue – Unrestricted b. Contribution Revenue – Temporarily Restricted c. Contribution Revenue – Permanently Restricted d. nothing because it is only an oral pledge 17.The Humane Society conducts a fund-raising drive by telephone and has total pledges of $55,000 and notes on other possible donors who were still considering making pledges of $8,000. What amount of contribution revenue will be recorded? a. $55,000 b. $63,000 c. $8,000 d. Zero 18. A donor makes a pledge to the zoo of $8,000 that will be paid in four installments of $2,000 each this year. The first installment of $2,000 is mailed in with the pledge card and the zoo will record a. Contribution Revenue – Temporarily Restricted of $8,000 b. Contribution Revenue – Temporarily Restricted of $6,000 c. Contribution Revenue – Unrestricted of $2,000 d. both b and c 19. A local charity received a $1,000 pledge that the donor agrees to pay next year. This is a(n) a. unconditional, unrestricted contribution b. unconditional, restricted contribution c. conditional, unrestricted contribution d. conditional, restricted contribution 20.A woman cleans out her attic and takes her thirty-year old clothes to her local Goodwill store. She estimates she could get $50 for these if she held a garage sale. The Goodwill store sorts the clothes and determines they cannot be used or sold and puts them in the pile that will go to the landfill. Goodwill should record a. a loss equal to amount of the dumping fee c. nothing b. a $50 unrestricted contribution d. a $50 unrestricted contribution net of the dumping fee 21. The League of Women Voters meets once a month in a conference room that is made available free by a local hotel and spends $25 for coffee and cookies at the hotel. The normal rental rate for this room is $150. The League will record a. nothing b. $150 temporarily restricted contribution c. $125 unrestricted contribution d. $150 unrestricted contribution 22. A local corporation provides blankets worth $5,000 during a winter blizzard to be handed out by the homeless shelter to the needy. The shelter will record a. an unrestricted contribution of $5,000 b. an asset and liability of $5,000 each c. a temporarily restricted contribution of $5,000 d. none of the above 23.A contributed service may be recognized as contribution revenue if it is a a. service that helps the organization b. specialized skill possessed by the individual c. skill the organization normally purchases d. b and c 24. A Certified Public Accountant provides 100 hours of free audit services to a local museum that is valued at $50 an hour and also helps out by spending 100 hours helping clean and landscape the grounds. The museum would record contribution revenue of a. $5,000 b. $10,000 c. zero d. none of the above 25. A sculpture worth $22,000 is donated to a botanical garden that has an outdoor sculpture park. The botanical garden has decided to capitalize their sculpture collection so the donation would be recorded as a a. unrestricted contribution b. permanently restricted contribution c. temporarily restricted contribution d. invested in capital assets net of related debt 26. A viewer makes a $100 pledge to the local public broadcasting station and receives a coffee mug valued at $2 in return. The station will record contribution revenue in the amount of a. $100 b. $98 c. $102 d. zero 27.Supporting services include a. fund-raising activities b. membership development c. management and general d. all of the above 28.Not-for-profit organizations record capital assets in the a. capital asset account b. property and equipment account c. depreciation account d. net assets account 29. Not-for-profit organizations classify net assets as a. conditional or unconditional b. restricted or unrestricted c. temporarily restricted, permanently restricted or unrestricted d. restricted, unrestricted and invested in capital assets net of related debt 30. Investment income or net appreciation generated from unrestricted donated assets should be reported a. as a change in unrestricted net assets b. where the donor specified c. as a change in cash d. as a change in contributions 31. FASB Statement No. 124 requires that losses on investments of a donor-restricted endowment fund will a. reduce temporarily restricted net assets first b. reduce the endowment c. reduce unrestricted net assets first d. be charged off as an expense 32. The basic financial statements for a not-for-profit opera society include a a. Statement of Activities b. Statement of Net Assets c. Statement of Budget to Actual d. Balance Sheet 33. The basic financial statements for the American Red Cross include a. Statement of Net Assets b. Statement of Functional Expenses c. Statement of Budget to Actual d. all of the above 34. The Statement of Functional Expenses is only required for a. art museums b. labor unions c. religious organizations d. voluntary health and welfare organizations 35. The Statement of Financial Position classifies assets, liabilities and net assets by a. fund b. program or supporting service c. unrestricted, temporarily restricted or permanently restricted d. revenues or expense 36. The primary government’s financial reporting entity includes a. organizations for which the primary government is an issuer of conduit debt b. organizations for which the primary government is financially accountable c. organizations that receive grants from the primary government d. organizations that collect taxes for the primary government 37. Financial accountability exists if the primary government a. collects taxes for the entity but cannot c. cannot impose its will on the organization impose its will on the entity b. appoints a majority of the governing body d. appoints a majority of the governing body and is responsible to fund any deficit and collects taxes and issues conduit debt incurred by the organization for the entity 38. A primary government would have a potential financial benefit or burden from another organization if the primary government can a. modify the organization’s budget b. use the organization’s resources 39. c. modify the organization’s fees d. appoint the organization’s finance director Component units are a. all other legally separate governmental entities that are located within a county b. all funds of the primary government c. other organizations that should be included to prevent the financial statements from being misleading d. all entities that participate in an external pool 40. A component unit is blended if a. the primary government can use or access c. the primary government is obligated in the organization’s resources some manner to repay the debt of the organization b. the primary government can impose its d. the governing bodies of the component will and appoint a majority of the unit and the primary government are governing board substantially the same 41. Discretely presented component units are shown on the government-wide financial statements a. in a separate column(s) of the Statement of Net Assets b. blended with the primary government’s data c. only as a footnote disclosure d. in the governmental activities column of the Statement of Net Assets 42. The Management’s Discussion and Analysis a. is optional under the GASB Statement No. c. should provide an analysis of significant 34 financial reporting model variations between the original and final budget b. should only discuss events that occurred d. should include all notes to the financial during the fiscal year statements 43.Required governmental fund financial statements include a. Statement of Net Assets and Statement of c. Balance Sheet and Statement of Revenues, Revenues, Expenditures and Changes in Expenditures and Changes in Fund Fund Balances Balances b. Balance Sheet and Statement of Activities d. Statement of Net Assets and Statement of Activities 44.A government must designate major and nonmajor funds for a. all fund categories c. each governmental and proprietary fund b. each governmental and fiduciary fund d. each governmental and enterprise fund 45. The major funds of a financial reporting entity would a. be presented in a separate column in the government-wide statements b. always include the General fund c. include an Enterprise fund if its assets are 10% or more of the corresponding element for all funds d. both a and b 46. What are the two major sections of the Governmental Funds Balance Sheet? a. Assets; Liabilities and Fund Balances b. Net Assets; Liabilities and Fund Equity c. Assets and Liabilities; Net Assets d. Assets; Liabilities and Net Assets 47. On the fund financial statements, assets and liabilities are a. listed in alphabetical order b. classified as reserved and unreserved c. listed in order of relative liquidity d. classified as unrestricted, temporarily restricted or permanently restricted 48.On the Governmental Funds Balance Sheet there is a separate column for a. each governmental fund and a total for all c. the General fund, major governmental governmental funds funds combined, nonmajor funds combined, and a total of all funds b. the General fund, each major d. each major governmental fund, nonmajor governmental fund, and a total of all governmental funds combined, and a total component unit governmental funds of all governmental funds 49. The governmental fund financial statements must include a. component unit governmental fund totals b. a summary reconciliation to the government-wide financial statements c. the classification of fund balance as designated and undesignated d. details of the six-step conversion to the government-wide financial statements 50. In the conversion from the governmental fund financial statements to the government-wide statements, the amount of capital assets and accumulated depreciation are a. included as a capital outlay expenditure b. added as noncurrent assets c. increase the amount of total net assets d. both b and c 51. The reconciliation of total governmental fund balances on the Governmental Funds Balance Sheet to net assets of governmental activities in the government-wide Statement of Net Assets includes a. adding assets and liabilities of Internal Service funds c. adding other long-term assets that are deferred in the funds b. adding general long-term liabilities d. all of the above 52.In the conversion to the government-wide financial statements, assets and liabilities of the Internal Service funds are a. added to the governmental activities assets c. added to the component unit assets and and liabilities liabilities b. added to the business-type activities assets d. not reported and liabilities 53. In the conversion of the governmental fund financial statements to the government-wide statements the amount of long-term debt issued during the year is converted from a. Bond Proceeds Revenue to Bonds Payable c. Other Financing Sources to Bonds Liability Payable Liability b. Bonds Payable Liability to Other d. Cash with Fiscal Agent to Other Financing Financing Sources Sources 54.In the consolidation process of preparing the government-wide financial statements a. interfund transfers between governmental c. interfund borrowings between funds are consolidated and eliminated governmental and proprietary funds are totaled up and netted out b. internal balances between governmental d. all of the above and proprietary funds are eliminated 55. Proprietary fund financial statements a. are prepared using the economic resources c. classify all funds as major or nonmajor measurement focus b. include a Statement of Activities d. all of the above 56.The Proprietary Funds Statement of Net Assets classifies net assets as a. restricted and unrestricted b. invested in capital assets net of related debt; reserved and unreserved c. designated and undesignated d. invested in capital assets net of related debt; restricted and unrestricted 57.The required government-wide financial statements include the a. Balance Sheet and Statement of Activities c. Statement of Activities and Statement of Net Assets b. Reconciliation Schedule, Statement of Net d. Six-step Conversion Worksheet, Assets and Statement of Cash Flows Statement of Activities and Statement of Net Assets 58. The government-wide Statement of Net Assets a. displays the net cost of providing governmental services b. displays a separate column for governmental activities, business-type activities, total primary government and component unit data c. classifies net assets as invested in capital assets, net of related debt; reserved; or unreserved d. all of the above 59. Which of the following are allocated when preparing the government-wide Statement of Activities? a. Depreciation expense for general infrastructure b. Interest expense on general obligation bonds c. Depreciation expense for assets associated with identified functions d. All indirect expenses 60. The government-wide Statement of Activities requires revenues to be identified as a. either general or program b. either operating or nonoperating c. either exchange or nonexchange d. either governmental or business-type 61. The government-wide Statement of Activities a. presents the net expense or revenue of the c. presents the net expense or revenue of the governmental and business-type activities governmental and business-type activities of the primary government of each component unit b. presents the net expense or revenue of d. both a and c each fund of the primary government 62. Required Supplementary Information for the financial reporting model includes a. Management’s Discussion and Analysis c. Budgetary Comparison Schedules b. information about defined benefit pension d. all of the above plan funding 63. In what account would the General fund record a loan to an Enterprise fund? a. Tax Anticipation Notes Payable b. Due from Other Funds c. Due to Other Funds d. Fund Balance 64.A proprietary fund would record inventory using a. the purchase method b. the consumption method c. either a or b d. none of the above 65. If the purchase method of recording inventory is used and there is a large amount of inventory on hand at fiscal year end, the inventory would a. be recorded as a liability b. not require an entry c. be recorded as a prepaid expense d. be recorded as an asset with an offsetting reserve of fund balance 66. A governmental fund would record the annual premium for liability insurance in a. an expense account b. a prepaid asset account c. an amortized premium account d. both a and b 67. Noncurrent assets are recorded in a. alphabetical order b. Enterprise funds c. the General Fund d. both b and c 68.Which of the following would be classified as a restricted asset a. General fund designates $100,000 for city hall expansion project b. Enterprise fund designates $30,000 for purchase of equipment c. General fund designates unrestricted donation d. Enterprise fund designates revenues for repayment of revenue bond principal and interest 69. A street light could be classified as a. a capital asset b. infrastructure c. part of a network of assets d. all of the above 70. Inexhaustible capital assets are a. depreciated over the anticipated useful life b. recorded as infrastructure c. depreciated under the modified approach d. not depreciated 71. Which of the following is NOT required under the modified approach to reporting infrastructure? a. Estimate of annual replacement cost of infrastructure at established condition level b. Estimate of annual funding needed to maintain and preserve infrastructure at established condition level c. Complete condition assessment of infrastructure every three years d. Current inventory of infrastructure assets 72. An Enterprise fund would record the payment of debt service principal in what account? a. Bonds Payable (long-term liability) c. Other Financing Uses b. Debt Service Principal Expenditure d. Due to Other Funds 73. An accrued interest liability is recorded at fiscal year-end for outstanding interest on bonds in a. a Debt Service fund b. a Cash with Fiscal Agent fund c. an Enterprise fund d. none of the above 74. A deferred revenue account is used to record a. revenue that has not been received and is unearned b. unamortized premiums c. revenue that has been received but is unearned d. unrealized gains and losses 75. The General fund would record the amount it owes the Utility fund for electricity in what account? a. Internal Balances b. Due to Utility Fund c. Electric Expense d. Advance to Utility Fund 76. The General fund would record the issuance of general obligation bonds as a a. debit to General Obligation Bonds Payable b. debit to Other Financing Sources c. credit to General Obligation Bonds Payable d. none of the above 77.Term bonds are a. generally issued to achieve level debt service b. a current liability because they have a call feature c. classified as long-term if they have a take-out agreement d. issued with the entire amount of principal due at the same time 78. Compensated absences should be recorded as a liability a. at the start of each fiscal c. year for the estimated value of the annual benefit b. when earned if employees d. will be paid for unused vacation time upon retirement when employees are compensated for sick time when employees are compensated for either sick time or vacation time 79.A government should record a claims and judgments liability when a. a lawsuit is filed c. b. it is probable a claim will be d. paid the amount of the claim can be estimated both b and c 80.A state requires local governments to provide free health care to homeless individuals that meet state guidelines and provides funding for the program. The local government will record these monies as a(n) a. exchange transaction for heath care b. imposed nonexchange transaction c. government-mandated nonexchange transaction d. voluntary nonexchange transaction 81. The state government requires a city to clean up a toxic waste site and provides $3,000,000 to assist with the clean up. The city will record the $3,000,000 grant from the state when a. the site is cleaned up b. the grant is awarded and eligibility requirements have been met c. the monies are received from the state d. either b or c, whichever is first 82.Eligibility requirements may include a. required characteristics of recipients b. time requirements c. contingencies d. all of the above 83. A citizen donates $5,000,000 to fund construction of a new public recreational center with the requirement that the city obtain additional donations in the amount of $3,000,000. The $5,000,000 will be recognized by the city when a. it is pledged b. it is paid c. it is earned d. the additional $3,000,000 in donations are obtained 84. A city utility receives a donation that is restricted for a specific purpose. The donation will be recorded as a. deferred revenue b. revenue when received c. restricted net assets until expended for the purpose d. both b and c 85. A citizen donates $1,000,000 for the public library to purchase books. This donation is a(n) a. exchange-like transaction b. escheat of property c. voluntary nonexchange transaction d. imposed tax revenue 86.A corporate income tax is a(n) a. imposed nonexchange revenue b. government-mandated nonexchange transaction c. derived tax revenue d. voluntary nonexchange transaction 87.Property taxes are recognized as available in the current fiscal year if they will be received within a. the fiscal year c. 60 days after fiscal year end b. 30 days after fiscal year end 88. d. 90 days after fiscal year end The property tax levy of $7,000,000 is recorded with an estimate that 5% will be uncollectible. At the end of the fiscal year, the city estimates that 10% of the total levy will remain unpaid 60 days after fiscal year-end. The amount of property tax revenue to be recorded for the fiscal year is a. $5,950,000 b. $6,000,000 c. $6,300,000 d. $6,650,000 89. A property tax levy of $10,000,000 was 90% collected on the date that it became delinquent. The original estimate of uncollectible was 5% and is revised to 2% on the remaining $1,000,000 delinquent property taxes to be collected. The entry to adjust the amount of estimated uncollectible taxes on the delinquent date will require a a. debit to Property Tax Revenue of $480,000 b. credit to Allowance for Uncollectible Property Taxes Current for $480,000 c. credit to Allowance for Uncollectible Property Taxes Delinquent for $500,000 d. credit to Allowance for Uncollectible Property Taxes Delinquent for $20,000 90. The city estimates that $3,000,000 in sales tax revenue has been collected at the time of the underlying exchange transactions and will be available to pay governmental expenditures when it is remitted by the end of the month. The entry to record this information will a. debit Deferred Revenue for $3,000,000 b. credit Deferred Revenue for $3,000,000 c. credit Sales Tax Revenue for $3,000,000 d. credit Sales Tax Receivable for $3,000,000 91. A citizen pays a quarterly estimate of personal income tax to the city. This quarterly estimate will be recorded by the city as a. credit to Deferred Revenue b. debit to Income Tax Revenues c. credit to Cash d. credit to Income Tax Revenues 92. A woman traveling on business checks out of her hotel room and pays the hotel bill that includes $18 in city hotel taxes that are used to pay off debt to construct a convention center. The hotel taxes of $18 will be recorded by the city when a. the hotel room is reserved b. the hotel bill is prepared c. the hotel bill is paid d. none of the above 93. A dog owner pays a dog license fee to the local village where he resides. The village will record the dog license fee revenue on a. the date the dog license notice is mailed b. the due date for renewal of dog licenses c. the date the dog licenses become delinquent d. the date that the dog owner pays the fee 94.The General fund receives a state appropriation of $2,000,000 that is required by law to be used to distribute nutritional supplements to all pregnant women who apply and meet certain income requirements. The General fund will recognize the $2,000,000 appropriation when a. the state appropriation is enacted b. the pregnant women apply for the supplements c. the entire $2,000,000 is spent on eligible applicants d. when available and eligible pregnant women are identified 95. Service-type special assessment billings for garbage collection by a city will be recorded as a. a debit to Property Taxes Receivable b. a credit to Special Assessments Receivable c. a credit to Garbage Collection Revenue d. no entry is required 96.A refundable customer deposit of $150 is paid to a city utility fund that will record it as a. a credit to Cash b. a credit to Customer’s Deposits Payable from Restricted Assets c. a credit to Customer Deposit Revenue d. a credit to Other Financing Sources 97. Expenses are a. recorded in governmental funds using the c. recorded in proprietary funds using the modified accrual method of accounting accrual method of accounting b. recorded in proprietary funds when paid d. never recorded in fiduciary funds 98. The General fund transfers $500,000 to the Debt Service fund for principal and interest payments on long-term debt. This General fund would record a. a debit to Due from Debt Service fund b. a debit to Other Financing Uses Operating Transfers Out c. a credit to Nonreciprocal Interfund Transfers d. a debit to Nonreciprocal Interfund Transfers 99. The General fund makes a residual equity transfer $50,000 to an Internal Service fund to purchase fleet equipment. This is an example of a(n) a. quasi-external transfer of funds b. reciprocal interfund loan c. nonreciprocal transfer of capital d. due to other funds 100. A county bills and collects property taxes from property holders for the county property tax, the local school property tax, and the local transportation authority property tax. When taxes are paid by taxpayers, the transaction to record the initial receipt of cash will be recorded in the a. General fund b. Agency fund c. Special Revenue fund d. Private-Purpose Trust fund 101. The budget serves as a blueprint for a. planning b. control c. evaluation d. all of the above 102. The city Park Permanent fund spends $2,000,000 for public park improvements. This payment will be recorded in the Park Permanent fund as a debit to the following account: a. Encumbrance b. Expense c. Expenditure d. Cash 103. An unusual, nonrecurring expenditure is recorded in a. Expenditures b. Miscellaneous Expenditures c. Appropriations d. Other Financing Uses 104. The city estimates revenues will be $18,300,000 for the next fiscal year and the City Council authorizes spending of $19,000,000. The entry to record the budget will a. decrease Budgetary Fund Balance b. decrease Appropriations c. increase Budgetary Fund Balance d. increase Expenditures 105. The village estimates revenues of $17,000,000 and will sell a tract of public land for $1,500,000 during the next fiscal year. The Village Council authorizes general government spending of $16,800,000 and also approves the city water utility budget that estimates water sales at $2,000,000 and expenses of $1,900,000. The entry to record the budget General fund will a. debit Estimated Revenues for $18,500,000 c. debit Estimated Revenues for $19,000,000 b. debit Estimated Other Financing Sources d. debit Estimated Revenues for $20,500,000 for $1,500,000 106. At the end of the fiscal year Revenues were $36,400,000. Estimated Revenues were recorded at the beginning of the fiscal year for $35,200,000. The entry to close Revenues and Estimated Revenues at the end of the fiscal year will record a a. credit to Revenues of $36,400,000 b. credit to Estimated Revenues of $36,400,000 c. debit to Budgetary Fund Balance of $1,200,000 d. credit to Budgetary Fund Balance of $1,200,000 107. A Capital Projects fund receives $30,000,000 in proceeds of general obligation bonds and contracts for the construction of a new public safety department building for $29,000,000. The unexpended balance of $1,000,000 will be reflected in what account? a. Encumbrances b. Building Funds c. Expenditures d. Unreserved Fund Balance

1.Not-for-profit health care organization financial statements include a
a. Statement of Cash Flows
b. Statement of Activities

c. Statement of Revenues, Expenses, and
Changes in Fund Balance
d. Statement of Budget to Actual

2. Not-for-profit health care organization financial statements include a
a. Statement of Net Assets
b. Statement of Activities

c. Statement of Operations
d. Statement of Budget to Actual

3.A not-for-profit health care organization Statement of Operations displays the
a. cash balance at the end of the year
b. amount of operating income

c. net cash used by operating activities
d. classified net assets

4. When the Allowance for Doubtful Accounts is adjusted, the expense is charged to
a. Charity Care
b. Provision for Bad Debts

c. Doubtful Account Expenses
d. Reservation of Fund Equity

5.Public colleges and universities follow accounting standards issued by
a. GASB
b. FASB
6.

c. AICPA
d. NACUBO

GASB Statement No. 35 requires governmental colleges and universities to
a. follow the GASB Statement No. 34
financial reporting model
b. produce a Statement of Operations

c. use the 1995 AICPA Audits of Colleges
and Universities financial reporting model
d. only use the modified approach for
infrastructure assets

7. A college or university is classified as governmental if
a. the governing board is appointed by the
c. the governing board is publicly elected
college president
b. the university pays corporate income taxes d. all of the above
8. The Coleville Community College can levy taxes, issue tax-exempt debt and the governing board
is publicly elected. The Coleville Community College is a
a. private not-for-profit organization
b. governmental organization

c. business-type activity
d. both b and c are correct

9. Governmental colleges and universities implementing GASB Statements No. 34 and 35 will
a. no longer use funds

c. use invested in capital assets net of related
debt, restricted and unrestricted net asset
classes
b. use restricted, unrestricted and temporarily d. none of the above
restricted net asset classes
10.Colleges and universities may elect to record transactions directly into net asset classes rather than
a. the Statement of Activities
b. the Statement of Operations

c. funds
d. liabilities

11. Governmental colleges and universities display student financial aid as a(n)
a. discount
b. expense

c. it is not displayed
d. expenditure

12.A public college provides scholarship assistance of $8,000,000 to its students. When the students
register for classes the college applies $7,500,000 of the financial aid to their tuition and fee bills
of $10,000,000 and students receive $500,000 in cash. The amount that will be recognized as
tuition and fee revenue by the college is
a. $10,000,000
b. $2,000,000

c. $2,500,000
d. $9,500,000

13. A public university bills $80,000,000 in tuition and fees and provides $23,000,000 in financial
aid. The university refunds in cash $800,000 of this financial aid directly to students.
What amount will the university report as tuition and fee revenue?
a. $80,000,000
b. $79,200,000

c. $57,000,000
d. $57,800,000

14. A public college has tuition and fee billings of $30,000,000 and provides $6,000,000 in financial
aid to students. The students apply $5,200,000 of this financial aid to their tuition and fee bill and
take the excess in cash. What amount is reported as an expense for financial aid?
a. $6,000,000
b. $5,200,000

c. $800,000
d. $6,800,000

15.A public college and university have tuition and fee revenue of $18,000,000 for the summer
semester that bridges two fiscal years. Sixty percent of the instruction takes place in the next
fiscal year and the university decides to allocate the revenue on that basis. The journal entry to
record this transaction in the current fiscal year will include
a. $10,800,000 in revenue

c. $10,800,000 in deferred revenue

b. $18,000,000 in revenue

d. $7,200,000 in deferred revenue

16.A patron gets a call from the Metropolitan Opera Society and pledges $1,000 to be used for general
operations. The Metropolitan Opera Society will record
a. Contribution Revenue – Unrestricted
b. Contribution Revenue – Temporarily
Restricted

c. Contribution Revenue – Permanently
Restricted
d. nothing because it is only an oral pledge

17.The Humane Society conducts a fund-raising drive by telephone and has total pledges of $55,000
and notes on other possible donors who were still considering making pledges of $8,000. What
amount of contribution revenue will be recorded?
a. $55,000
b. $63,000

c. $8,000
d. Zero

18. A donor makes a pledge to the zoo of $8,000 that will be paid in four installments of $2,000 each
this year. The first installment of $2,000 is mailed in with the pledge card and the zoo will record
a. Contribution Revenue – Temporarily
Restricted of $8,000
b. Contribution Revenue – Temporarily
Restricted of $6,000

c. Contribution Revenue – Unrestricted of
$2,000
d. both b and c

19. A local charity received a $1,000 pledge that the donor agrees to pay next year. This is a(n)
a. unconditional, unrestricted contribution
b. unconditional, restricted contribution

c. conditional, unrestricted contribution
d. conditional, restricted contribution

20.A woman cleans out her attic and takes her thirty-year old clothes to her local Goodwill store. She
estimates she could get $50 for these if she held a garage sale. The Goodwill store sorts the
clothes and determines they cannot be used or sold and puts them in the pile that will go to the
landfill. Goodwill should record
a. a loss equal to amount of the dumping fee c. nothing
b. a $50 unrestricted contribution
d. a $50 unrestricted contribution net of the
dumping fee
21. The League of Women Voters meets once a month in a conference room that is made available
free by a local hotel and spends $25 for coffee and cookies at the hotel. The normal rental rate
for this room is $150. The League will record
a. nothing
b. $150 temporarily restricted contribution

c. $125 unrestricted contribution
d. $150 unrestricted contribution

22. A local corporation provides blankets worth $5,000 during a winter blizzard to be handed out by
the homeless shelter to the needy. The shelter will record

a. an unrestricted contribution of $5,000
b. an asset and liability of $5,000 each

c. a temporarily restricted contribution of
$5,000
d. none of the above

23.A contributed service may be recognized as contribution revenue if it is a
a. service that helps the organization
b. specialized skill possessed by the
individual

c. skill the organization normally purchases
d. b and c

24. A Certified Public Accountant provides 100 hours of free audit services to a local museum that is
valued at $50 an hour and also helps out by spending 100 hours helping clean and landscape the
grounds. The museum would record contribution revenue of
a. $5,000
b. $10,000

c. zero
d. none of the above

25. A sculpture worth $22,000 is donated to a botanical garden that has an outdoor sculpture park.
The botanical garden has decided to capitalize their sculpture collection so the donation would be
recorded as a
a. unrestricted contribution
b. permanently restricted contribution

c. temporarily restricted contribution
d. invested in capital assets net of related
debt

26. A viewer makes a $100 pledge to the local public broadcasting station and receives a coffee mug
valued at $2 in return. The station will record contribution revenue in the amount of
a. $100
b. $98

c. $102
d. zero

27.Supporting services include
a. fund-raising activities
b. membership development

c. management and general
d. all of the above

28.Not-for-profit organizations record capital assets in the
a. capital asset account
b. property and equipment account

c. depreciation account
d. net assets account

29. Not-for-profit organizations classify net assets as
a. conditional or unconditional
b. restricted or unrestricted

c. temporarily restricted, permanently
restricted or unrestricted
d. restricted, unrestricted and invested in
capital assets net of related debt

30. Investment income or net appreciation generated from unrestricted donated assets should be
reported
a. as a change in unrestricted net assets
b. where the donor specified

c. as a change in cash
d. as a change in contributions

31. FASB Statement No. 124 requires that losses on investments of a donor-restricted endowment
fund will
a. reduce temporarily restricted net assets
first
b. reduce the endowment

c. reduce unrestricted net assets first
d. be charged off as an expense

32. The basic financial statements for a not-for-profit opera society include a
a. Statement of Activities
b. Statement of Net Assets

c. Statement of Budget to Actual
d. Balance Sheet

33. The basic financial statements for the American Red Cross include
a. Statement of Net Assets
b. Statement of Functional Expenses

c. Statement of Budget to Actual
d. all of the above

34. The Statement of Functional Expenses is only required for
a. art museums
b. labor unions

c. religious organizations
d. voluntary health and welfare organizations

35. The Statement of Financial Position classifies assets, liabilities and net assets by
a. fund
b. program or supporting service

c. unrestricted, temporarily restricted or
permanently restricted
d. revenues or expense

36. The primary government’s financial reporting entity includes
a. organizations for which the primary
government is an issuer of conduit debt
b. organizations for which the primary
government is financially accountable

c. organizations that receive grants from the
primary government
d. organizations that collect taxes for the
primary government

37. Financial accountability exists if the primary government
a. collects taxes for the entity but cannot
c. cannot impose its will on the organization
impose its will on the entity
b. appoints a majority of the governing body d. appoints a majority of the governing body
and is responsible to fund any deficit
and collects taxes and issues conduit debt
incurred by the organization
for the entity

38. A primary government would have a potential financial benefit or burden from another
organization if the primary government can
a. modify the organization’s budget
b. use the organization’s resources
39.

c. modify the organization’s fees
d. appoint the organization’s finance director

Component units are
a. all other legally separate governmental
entities that are located within a county
b. all funds of the primary government

c. other organizations that should be
included to prevent the financial
statements from being misleading
d. all entities that participate in an external
pool

40. A component unit is blended if
a. the primary government can use or access c. the primary government is obligated in
the organization’s resources
some manner to repay the debt of the
organization
b. the primary government can impose its
d. the governing bodies of the component
will and appoint a majority of the
unit and the primary government are
governing board
substantially the same
41. Discretely presented component units are shown on the government-wide financial statements
a. in a separate column(s) of the Statement
of Net Assets
b. blended with the primary government’s
data

c. only as a footnote disclosure
d. in the governmental activities column of
the Statement of Net Assets

42. The Management’s Discussion and Analysis
a. is optional under the GASB Statement No. c. should provide an analysis of significant
34 financial reporting model
variations between the original and final
budget
b. should only discuss events that occurred d. should include all notes to the financial
during the fiscal year
statements
43.Required governmental fund financial statements include
a. Statement of Net Assets and Statement of c. Balance Sheet and Statement of Revenues,
Revenues, Expenditures and Changes in
Expenditures and Changes in Fund
Fund Balances
Balances
b. Balance Sheet and Statement of Activities d. Statement of Net Assets and Statement of
Activities
44.A government must designate major and nonmajor funds for
a. all fund categories

c. each governmental and proprietary fund

b. each governmental and fiduciary fund

d. each governmental and enterprise fund

45. The major funds of a financial reporting entity would
a. be presented in a separate column in the
government-wide statements
b. always include the General fund

c. include an Enterprise fund if its assets are
10% or more of the corresponding element
for all funds
d. both a and b

46. What are the two major sections of the Governmental Funds Balance Sheet?
a. Assets; Liabilities and Fund Balances
b. Net Assets; Liabilities and Fund Equity

c. Assets and Liabilities; Net Assets
d. Assets; Liabilities and Net Assets

47. On the fund financial statements, assets and liabilities are
a. listed in alphabetical order
b. classified as reserved and unreserved

c. listed in order of relative liquidity
d. classified as unrestricted, temporarily
restricted or permanently restricted

48.On the Governmental Funds Balance Sheet there is a separate column for
a. each governmental fund and a total for all c. the General fund, major governmental
governmental funds
funds combined, nonmajor funds
combined, and a total of all funds
b. the General fund, each major
d. each major governmental fund, nonmajor
governmental fund, and a total of all
governmental funds combined, and a total
component unit governmental funds
of all governmental funds
49. The governmental fund financial statements must include
a. component unit governmental fund totals
b. a summary reconciliation to the
government-wide financial statements

c. the classification of fund balance as
designated and undesignated
d. details of the six-step conversion to the
government-wide financial statements

50. In the conversion from the governmental fund financial statements to the government-wide
statements, the amount of capital assets and accumulated depreciation are
a. included as a capital outlay expenditure
b. added as noncurrent assets

c. increase the amount of total net assets
d. both b and c

51. The reconciliation of total governmental fund balances on the Governmental Funds Balance Sheet
to net assets of governmental activities in the government-wide Statement of Net Assets includes
a. adding assets and liabilities of Internal
Service funds

c. adding other long-term assets that are
deferred in the funds

b. adding general long-term liabilities

d. all of the above

52.In the conversion to the government-wide financial statements, assets and liabilities of the Internal
Service funds are
a. added to the governmental activities assets c. added to the component unit assets and
and liabilities
liabilities
b. added to the business-type activities assets d. not reported
and liabilities
53. In the conversion of the governmental fund financial statements to the government-wide
statements the amount of long-term debt issued during the year is converted from
a. Bond Proceeds Revenue to Bonds Payable c. Other Financing Sources to Bonds
Liability
Payable Liability
b. Bonds Payable Liability to Other
d. Cash with Fiscal Agent to Other Financing
Financing Sources
Sources
54.In the consolidation process of preparing the government-wide financial statements
a. interfund transfers between governmental c. interfund borrowings between
funds are consolidated and eliminated
governmental and proprietary funds are
totaled up and netted out
b. internal balances between governmental
d. all of the above
and proprietary funds are eliminated
55. Proprietary fund financial statements
a. are prepared using the economic resources c. classify all funds as major or nonmajor
measurement focus
b. include a Statement of Activities
d. all of the above
56.The Proprietary Funds Statement of Net Assets classifies net assets as
a. restricted and unrestricted
b. invested in capital assets net of related
debt; reserved and unreserved

c. designated and undesignated
d. invested in capital assets net of related
debt; restricted and unrestricted

57.The required government-wide financial statements include the
a. Balance Sheet and Statement of Activities c. Statement of Activities and Statement of
Net Assets
b. Reconciliation Schedule, Statement of Net d. Six-step Conversion Worksheet,
Assets and Statement of Cash Flows
Statement of Activities and Statement of
Net Assets
58. The government-wide Statement of Net Assets

a. displays the net cost of providing
governmental services
b. displays a separate column for
governmental activities, business-type
activities, total primary government and
component unit data

c. classifies net assets as invested in capital
assets, net of related debt; reserved; or
unreserved
d. all of the above

59. Which of the following are allocated when preparing the government-wide Statement of
Activities?
a. Depreciation expense for general
infrastructure
b. Interest expense on general obligation
bonds

c. Depreciation expense for assets associated
with identified functions
d. All indirect expenses

60. The government-wide Statement of Activities requires revenues to be identified as
a. either general or program
b. either operating or nonoperating

c. either exchange or nonexchange
d. either governmental or business-type

61. The government-wide Statement of Activities
a. presents the net expense or revenue of the c. presents the net expense or revenue of the
governmental and business-type activities
governmental and business-type activities
of the primary government
of each component unit
b. presents the net expense or revenue of
d. both a and c
each fund of the primary government
62. Required Supplementary Information for the financial reporting model includes
a. Management’s Discussion and Analysis
c. Budgetary Comparison Schedules
b. information about defined benefit pension d. all of the above
plan funding
63. In what account would the General fund record a loan to an Enterprise fund?
a. Tax Anticipation Notes
Payable
b. Due from Other Funds

c. Due to Other Funds
d. Fund Balance

64.A proprietary fund would record inventory using
a. the purchase method
b. the consumption method

c. either a or b
d. none of the above

65. If the purchase method of recording inventory is used and there is a large amount of inventory on
hand at fiscal year end, the inventory would

a. be recorded as a liability
b. not require an entry

c. be recorded as a prepaid expense
d. be recorded as an asset with an
offsetting reserve of fund balance

66. A governmental fund would record the annual premium for liability insurance in
a. an expense account
b. a prepaid asset account

c. an amortized premium account
d. both a and b

67. Noncurrent assets are recorded in
a. alphabetical order
b. Enterprise funds

c. the General Fund
d. both b and c

68.Which of the following would be classified as a restricted asset
a. General fund designates
$100,000 for city hall
expansion project
b. Enterprise fund designates
$30,000 for purchase of
equipment

c. General fund designates unrestricted
donation
d. Enterprise fund designates revenues
for repayment of revenue bond
principal and interest

69. A street light could be classified as
a. a capital asset
b. infrastructure

c. part of a network of assets
d. all of the above

70. Inexhaustible capital assets are
a. depreciated over the
anticipated useful life
b. recorded as infrastructure

c. depreciated under the modified
approach
d. not depreciated

71. Which of the following is NOT required under the modified approach to reporting infrastructure?
a. Estimate of annual
replacement cost of
infrastructure at established
condition level
b. Estimate of annual funding
needed to maintain and
preserve infrastructure at
established condition level

c. Complete condition assessment of
infrastructure every three years
d. Current inventory of infrastructure
assets

72. An Enterprise fund would record the payment of debt service principal in what account?
a. Bonds Payable (long-term
liability)

c. Other Financing Uses

b. Debt Service Principal
Expenditure

d. Due to Other Funds

73. An accrued interest liability is recorded at fiscal year-end for outstanding interest on bonds in
a. a Debt Service fund
b. a Cash with Fiscal Agent
fund

c. an Enterprise fund
d. none of the above

74. A deferred revenue account is used to record
a. revenue that has not been
received and is unearned
b. unamortized premiums

c. revenue that has been received but is
unearned
d. unrealized gains and losses

75. The General fund would record the amount it owes the Utility fund for electricity in what
account?
a. Internal Balances
b. Due to Utility Fund

c. Electric Expense
d. Advance to Utility Fund

76. The General fund would record the issuance of general obligation bonds as a
a. debit to General Obligation
Bonds Payable
b. debit to Other Financing
Sources

c. credit to General Obligation Bonds
Payable
d. none of the above

77.Term bonds are
a. generally issued to achieve
level debt service
b. a current liability because
they have a call feature

c. classified as long-term if they have a
take-out agreement
d. issued with the entire amount of
principal due at the same time

78. Compensated absences should be recorded as a liability
a. at the start of each fiscal
c.
year for the estimated value
of the annual benefit
b. when earned if employees
d.
will be paid for unused
vacation time upon
retirement

when employees are compensated
for sick time
when employees are compensated
for either sick time or vacation
time

79.A government should record a claims and judgments liability when
a. a lawsuit is filed

c.

b. it is probable a claim will be d.
paid

the amount of the claim can be
estimated
both b and c

80.A state requires local governments to provide free health care to homeless individuals that meet
state guidelines and provides funding for the program. The local government will record these
monies as a(n)
a. exchange transaction for heath care
b. imposed nonexchange transaction

c. government-mandated nonexchange
transaction
d. voluntary nonexchange transaction

81. The state government requires a city to clean up a toxic waste site and provides $3,000,000 to
assist with the clean up. The city will record the $3,000,000 grant from the state when
a. the site is cleaned up
b. the grant is awarded and eligibility
requirements have been met

c. the monies are received from the state
d. either b or c, whichever is first

82.Eligibility requirements may include
a. required characteristics of recipients
b. time requirements

c. contingencies
d. all of the above

83. A citizen donates $5,000,000 to fund construction of a new public recreational center with the
requirement that the city obtain additional donations in the amount of $3,000,000. The
$5,000,000 will be recognized by the city when
a. it is pledged
b. it is paid

c. it is earned
d. the additional $3,000,000 in donations are
obtained

84. A city utility receives a donation that is restricted for a specific purpose. The donation will be
recorded as
a. deferred revenue
b. revenue when received

c. restricted net assets until expended for the
purpose
d. both b and c

85. A citizen donates $1,000,000 for the public library to purchase books. This donation is a(n)
a. exchange-like transaction
b. escheat of property

c. voluntary nonexchange transaction
d. imposed tax revenue

86.A corporate income tax is a(n)
a. imposed nonexchange revenue
b. government-mandated nonexchange
transaction

c. derived tax revenue
d. voluntary nonexchange transaction

87.Property taxes are recognized as available in the current fiscal year if they will be received within
a. the fiscal year

c. 60 days after fiscal year end

b. 30 days after fiscal year end
88.

d. 90 days after fiscal year end

The property tax levy of $7,000,000 is recorded with an estimate that 5% will be
uncollectible. At the end of the fiscal year, the city estimates that 10% of the total levy will
remain unpaid 60 days after fiscal year-end. The amount of property tax revenue to be recorded
for the fiscal year is
a. $5,950,000
b. $6,000,000

c. $6,300,000
d. $6,650,000

89. A property tax levy of $10,000,000 was 90% collected on the date that it became delinquent. The
original estimate of uncollectible was 5% and is revised to 2% on the remaining $1,000,000
delinquent property taxes to be collected. The entry to adjust the amount of estimated
uncollectible taxes on the delinquent date will require a
a. debit to Property Tax Revenue of
$480,000
b. credit to Allowance for Uncollectible
Property Taxes Current for $480,000

c. credit to Allowance for Uncollectible
Property Taxes Delinquent for $500,000
d. credit to Allowance for Uncollectible
Property Taxes Delinquent for $20,000

90. The city estimates that $3,000,000 in sales tax revenue has been collected at the time of the
underlying exchange transactions and will be available to pay governmental expenditures when it
is remitted by the end of the month. The entry to record this information will
a. debit Deferred Revenue for $3,000,000
b. credit Deferred Revenue for $3,000,000

c. credit Sales Tax Revenue for $3,000,000
d. credit Sales Tax Receivable for
$3,000,000

91. A citizen pays a quarterly estimate of personal income tax to the city. This quarterly estimate will
be recorded by the city as
a. credit to Deferred Revenue
b. debit to Income Tax Revenues

c. credit to Cash
d. credit to Income Tax Revenues

92. A woman traveling on business checks out of her hotel room and pays the hotel bill that includes
$18 in city hotel taxes that are used to pay off debt to construct a convention center. The hotel
taxes of $18 will be recorded by the city when
a. the hotel room is reserved
b. the hotel bill is prepared

c. the hotel bill is paid
d. none of the above

93. A dog owner pays a dog license fee to the local village where he resides. The village will record
the dog license fee revenue on
a. the date the dog license notice is mailed
b. the due date for renewal of dog licenses

c. the date the dog licenses become
delinquent
d. the date that the dog owner pays the fee

94.The General fund receives a state appropriation of $2,000,000 that is required by law to be used to
distribute nutritional supplements to all pregnant women who apply and meet certain income
requirements. The General fund will recognize the $2,000,000 appropriation when
a. the state appropriation is enacted
b. the pregnant women apply for the
supplements

c. the entire $2,000,000 is spent on eligible
applicants
d. when available and eligible pregnant
women are identified

95. Service-type special assessment billings for garbage collection by a city will be recorded as
a. a debit to Property Taxes Receivable
b. a credit to Special Assessments
Receivable

c. a credit to Garbage Collection Revenue
d. no entry is required

96.A refundable customer deposit of $150 is paid to a city utility fund that will record it as
a. a credit to Cash
b. a credit to Customer’s Deposits Payable
from Restricted Assets

c. a credit to Customer Deposit Revenue
d. a credit to Other Financing Sources

97. Expenses are
a. recorded in governmental funds using the c. recorded in proprietary funds using the
modified accrual method of accounting
accrual method of accounting
b. recorded in proprietary funds when paid
d. never recorded in fiduciary funds
98. The General fund transfers $500,000 to the Debt Service fund for principal and interest payments
on long-term debt. This General fund would record
a. a debit to Due from Debt Service fund
b. a debit to Other Financing Uses Operating Transfers Out

c. a credit to Nonreciprocal Interfund
Transfers
d. a debit to Nonreciprocal Interfund
Transfers

99. The General fund makes a residual equity transfer $50,000 to an Internal Service fund to purchase
fleet equipment. This is an example of a(n)
a. quasi-external transfer of funds
b. reciprocal interfund loan

c. nonreciprocal transfer of capital
d. due to other funds

100. A county bills and collects property taxes from property holders for the county property tax, the
local school property tax, and the local transportation authority property tax. When taxes are paid
by taxpayers, the transaction to record the initial receipt of cash will be recorded in the
a. General fund
b. Agency fund

c. Special Revenue fund
d. Private-Purpose Trust fund

101. The budget serves as a blueprint for
a. planning
b. control

c. evaluation
d. all of the above

102. The city Park Permanent fund spends $2,000,000 for public park improvements. This payment
will be recorded in the Park Permanent fund as a debit to the following account:
a. Encumbrance
b. Expense

c. Expenditure
d. Cash

103. An unusual, nonrecurring expenditure is recorded in
a. Expenditures
b. Miscellaneous Expenditures

c. Appropriations
d. Other Financing Uses

104. The city estimates revenues will be $18,300,000 for the next fiscal year and the City Council
authorizes spending of $19,000,000. The entry to record the budget will
a. decrease Budgetary Fund Balance
b. decrease Appropriations

c. increase Budgetary Fund Balance
d. increase Expenditures

105. The village estimates revenues of $17,000,000 and will sell a tract of public land for $1,500,000
during the next fiscal year. The Village Council authorizes general government spending of
$16,800,000 and also approves the city water utility budget that estimates water sales at
$2,000,000 and expenses of $1,900,000. The entry to record the budget General fund will
a. debit Estimated Revenues for $18,500,000 c. debit Estimated Revenues for $19,000,000
b. debit Estimated Other Financing Sources d. debit Estimated Revenues for $20,500,000
for $1,500,000
106. At the end of the fiscal year Revenues were $36,400,000. Estimated Revenues were recorded at
the beginning of the fiscal year for $35,200,000. The entry to close Revenues and Estimated
Revenues at the end of the fiscal year will record a
a. credit to Revenues of $36,400,000
b. credit to Estimated Revenues of
$36,400,000

c. debit to Budgetary Fund Balance of
$1,200,000
d. credit to Budgetary Fund Balance of
$1,200,000

107. A Capital Projects fund receives $30,000,000 in proceeds of general obligation bonds and
contracts for the construction of a new public safety department building for $29,000,000. The
unexpended balance of $1,000,000 will be reflected in what account?
a. Encumbrances
b. Building Funds

c. Expenditures
d. Unreserved Fund Balance

Click here to have a similar A+ quality paper

Order Now