33) According to the GASB definition, which of the following represents an inflow of resources?
A) Expenditures.
B) Revenues.
C) Assets.
D) Deferred inflows.
34) According to the GASB, information that is essential and useful to placing information in the
correct context should be reported as which of the following?
A) Required supplementary information.
B) Supplementary information.
C) Notes to the financial statements.
D) A line item on the financial statements.
35) Which of the following is not one of the methods recommended by the GASB Concepts
Statement 3 for communicating information to external users of government financial reports?
A) Providing a popular report.
B) Recognition in the financial statements.
C) Presentation as required supplementary information.
D) Disclosure in the notes to the financial statements.
36) Which of the following activities is considered a core government activity?
A) Finance and budget.
B) Central purchasing.
C) Culture and recreation.
D) Employee pension fund.
37) Which of the following is true regarding financial reporting for internal service funds?
A) Internal service funds are reported in the governmental fund financial statements.
B) Internal service funds are aggregated and reported as a major fund in the proprietary fund
financial statements.
C) Internal service funds are generally reported in the Business-type Activities column of the
government-wide financial statements.
D) Internal service funds are generally reported in the Governmental Activities column of the
government-wide financial statements.
38) Which of the following is not a characteristic of a fund as defined by GASB standards?
A) An accounting entity.
B) A fiscal entity.
C) A reporting entity.
D) A self-balancing set of accounts.
39) In accounting for state and local governments the modified accrual basis is required for
A) Proprietary and fiduciary funds.
B) Governmental funds.
C) Governmental and fiduciary funds.
D) Governmental and internal service funds.
40) Under the modified accrual basis of accounting, revenues should be recognized when
A) Earned.
B) Collected in cash.
C) Authorized by the budget ordinance.
D) Measurable and available.
41) Which of the following funds is a governmental fund-type?
A) Private-purpose trust fund.
B) Internal service fund.
C) Permanent fund.
D) Enterprise fund.
42) Financial resources set aside to pay principal and interest on general long-term debt may be
accounted for in which of the following fund types?
A) Private-purpose trust fund.
B) Debt service fund.
C) Principal and interest trust fund.
D) Internal service fund.
43) Which of the following is a proprietary fund?
A) Special revenue fund.
B) Investment trust fund.
C) Debt service fund.
D) Internal service fund.
44) Which of the following is a fiduciary fund?
A) Investment trust fund.
B) Special revenue fund.
C) Debt service fund.
D) Enterprise fund.
45) Which of the following funds would be most appropriate when accounting for an activity that
provides goods or services to the public for a fee that is intended to make the activity
self-supporting?
A) Investment trust fund.
B) Enterprise fund.
C) Internal service fund.
D) Special revenue fund.
46) Which of the following funds should be used if resources provided by a federal grant must be
segregated and used for counseling of youthful offenders?
A) Private-purpose trust fund.
B) Enterprise fund.
C) Internal service fund.
D) Special revenue fund.
47) Which of the following funds would be used to account for an activity that provides centralized
purchasing and sales of goods or services to other departments or agencies of the government on a
cost-reimbursement basis?
A) Enterprise fund.
B) Fiduciary fund.
C) Internal service fund.
D) Permanent fund.
48) Which of the following funds would record depreciation of capital assets?
A) Special revenue fund.
B) Permanent fund.
C) Internal service fund.
D) Custodial fund.
49) Capital assets used by departments accounted for by the General Fund of a governmental unit
should be accounted for in
A) The General Fund.
B) The governmental activities journal.
C) The business-type activities journal.
D) The general capital assets fund.
50) Capital assets used by an enterprise fund should be accounted for in the
A) Enterprise fund and depreciation on the capital assets should be recorded.
B) Business-type activities journal but no depreciation on the capital assets should be recorded.
C) Governmental activities journal and depreciation on the capital assets should be recorded.
D) Enterprise fund but no depreciation on the capital assets should be recorded.
51) Which of the following funds are proprietary funds?
A) Enterprise funds, investment trust funds, pension trust funds, and the General Fund.
B) Enterprise funds and internal service funds.
C) Internal service funds, special revenue funds, and enterprise funds.
D) Proprietary funds are not used in governmental accounting.
52) Which of the following funds are governmental funds?
A) General Fund, special revenue funds, capital projects funds, debt service funds, and
private-purpose trust funds.
B) General Fund, special revenue funds, private-purpose trust funds.
C) General Fund, special revenue funds, debt service funds, capital projects funds, and permanent
funds.
D) General Fund, special revenue funds, capital projects funds, debt service funds, and internal
service funds.
53) The activities of a water utility department, which offers its services to the general public on a
user charge basis, should be accounted for in
A) An enterprise fund.
B) A special revenue fund.
C) The General Fund.
D) An internal service fund.