27. Which statement is not correct?
28. For governmental entities, the accrual basis of accounting is used for:
29. What account is debited in the general fund when equipment is received
by a governmental entity?
30. Generally, annual budgets are recorded within the following funds:
31. When a city received a federal grant for books to be purchased for a
library, the money should have been recorded in
32. When a city holds pension monies for city employees, the monies should
be recorded in
33. When a city received a private donation of $1,000,000 stipulating that the
principal donation would be preserved but allowing the interest income to be
spent on building a city park with access for disabled children, which fund should
the money be recorded in?
34. When a city collects fees from citizens who use the public swimming pool,
the money should be recorded in
35. A city operates a central data processing facility. The expenses of this
facility would be accounted for using
36. What are the two proprietary fund types?
(1) Internal service funds
(2) Investment trust funds
(3) Enterprise funds.
(4) Agency funds
37. Salaries and wages that have been earned by governmental employees
that have not yet been paid are recorded in the general fund as:
38. The reporting of the fund balance of governmental funds will result in a
maximum of ___________ categories:
39. Which classifications may be
not
used for the Fund Balance of
governmental funds?
40. Which of the following statements is true about Fund Balance
classifications for the governmental funds?
41. For each of the following transactions, select the area of accounting
records in which an entry will be recorded.
(A) General Fund only.
(B) Governmental Activities only.
(C) General Fund and Governmental Activities.
(D) General Fund and Debt Service Fund.
(E) Capital Projects Fund and Governmental Activities.
(F) Debt Service Fund and Governmental Activities.
(G) Special Revenue Fund and Governmental Activities.
___ (1.) The city council adopts an annual budget for the General Fund.
___ (2.) Property taxes are levied.
___ (3.) Computers are ordered for the fire department.
___ (4.) A transfer of funds is made from the General Fund to the Debt Service
Fund.
___ (5.) The principal and interest of a bond are paid.
___ (6.) A building is acquired for the police department, and renovations begin
immediately.
___ (7.) Depreciation on fire trucks is recorded.
___ (8.) Citizens are assessed for a street lighting project that has been legally
restricted for those citizens.
___ (9.) A grant is received to landscape tree-lined areas beside city-owned
streets.
___ (10.) The city spends grant money received in (9.) above and landscapes the
tree-lined areas beside the streets for which the grant money was received.
42. What organization is responsible for establishing accounting principles for
governmental entities? By whom was this organization established?
43. What is a special revenue fund used to account for?
44. What is the definition of the term
fund
?
45. For a government, what kinds of operations are accounted for using a
proprietary fund? Give three examples.
46. What are the five types of governmental funds?
The five types of governmental funds are:
47. A city enacted a special tax levy and the money must be used to provide
medical services at the municipal hospital. What kind of fund should be used to
record the revenues generated by the tax?
48. In governmental accounting, what term is used for a decrease in financial
resources?
49. Under modified accrual accounting, when are expenditures recorded?
50. What assets would be included in the accounting records of a city’s
general fund?
51. Under modified accrual accounting, when should revenues be reported by
a governmental-type fund?
52. When should property taxes be recognized under modified accrual
accounting?
53. What are the two groups of financial statements mandated by GASB
Statement No. 34? For each group, what are the names of the individual
statements that must be produced?