Archives: Quiz
978-1259917059 Test Bank Chapter 7 Part 2
37) The comprehensive annual financial report (CAFR) of a government should contain a statement of revenues, expenses, and changes in fund net position for: A) Both proprietary and governmental funds. B) Proprietary but not governmental funds. C) Governmental but not […]
978-1259917059 Test Bank Chapter 7 Part 1
Accounting for Governmental and Nonprofit Entities, 18e (Reck) Chapter 7 Accounting for the Business-type Activities of State and Local Governments 1) For proprietary funds, governments generally present a statement of net position in a format that displays assets, plus deferred […]
978-1259917059 Test Bank Chapter 6 Part 4
68) In the current fiscal year, St. George County issued $3,000,000 in general obligation term bonds for 102. The county is required to use any accrued interest or premiums for servicing the debt issue. a. How would the bond issue […]
978-1259917059 Test Bank Chapter 6 Part 3
56) On June 1, Brooktown levied special assessments in the amount of $500,000, payable in 10 equal annual installments beginning on June 30. The assessment installments are intended to pay principal and interest on special assessment bonds for which the […]
978-1259917059 Test Bank Chapter 6 Part 2
34) Which of the following statements is true? A) Debt margin is reported in the governmental activities column of the government-wide statements. B) Debt limit represents the total amount of indebtedness of specified kinds that is allowed by law to […]
978-1259917059 Test Bank Chapter 6 Part 1
Accounting for Governmental and Nonprofit Entities, 18e (Reck) Chapter 6 Accounting for General Long-Term Liabilities and Debt Service 1) The use of long-term debt is a traditional part of the fiscal policy of state and local governments. Answer: TRUE Difficulty: […]
978-1259917059 Test Bank Chapter 5 Part 4
76) For each of the following definitions, select the key term from the list that relate to general capital assets and capital projects. A. Bond anticipation notes B. Infrastructure assets C. Service Concession Arrangements D. General capital assets E. Capital […]
978-1259917059 Test Bank Chapter 5 Part 3
56) Which of the following statements is correct concerning interest expenditures incurred during the period of construction of capital projects? A) Interest expenditures may not be capitalized as part of the cost of general capital assets reported in governmental activities. […]
978-1259917059 Test Bank Chapter 5 Part 2
37) During the year, a wealthy local merchant donated a building to the City of Rosewood. The original cost of the building was $300,000. Accumulated depreciation at the date of the gift amounted to $250,000. The appraised value of the […]
978-1259917059 Test Bank Chapter 5 Part 1
Accounting for Governmental and Nonprofit Entities, 18e (Reck) Chapter 5 Accounting for General Capital Assets and Capital Projects 1) General capital assets should be distinguished from capital assets that are specifically associated with activities financed by proprietary and fiduciary funds, […]
978-1259917059 Test Bank Chapter 4 Part 5
38 89) During fiscal year 2020, the Town of Tonawanda issued purchase orders to various vendors in the amounts shown for the following functions of the town: General Government $ 82,500 Public Safety 148,700 Public Works 130,400 Culture and Recreation […]
978-1259917059 Test Bank Chapter 4 Part 4
79) The county received a $10,000,000 endowment, the terms of which indicate that earnings on the endowment are to be used by health and welfare to provide medical services to low-income children. Where would the $10,000,000 be recorded? A) Special […]
978-1259917059 Test Bank Chapter 4 Part 3
54) The City of Island Grove uses encumbrance accounting and its fiscal year ends on June 30. On May 6, a purchase order was approved and issued for supplies in the amount of $6,000. Island Grove received these supplies on […]
978-1259917059 Test Bank Chapter 4 Part 2
35) The City of Pringle purchased a vehicle for the police department. If the operations of the police department are financed by general revenues, an asset would be recorded in which journal(s)? General Fund Governmental Activities A) Yes No B) […]
978-1259917059 Test Bank Chapter 4 Part 1
Accounting for Governmental and Nonprofit Entities, 18e (Reck) Chapter 4 Accounting for Governmental Operating Activities–Illustrative Transactions and Financial Statements 1) The government-wide statement of net position is prepared using the same measurement focus and basis of accounting as the General […]
978-1259917059 Test Bank Chapter 3 Part 4
F. Miscellaneous ________ 1. Capital grant received by a city from a state ________ 2. Property tax levied by city ________ 3. Library use fees ________ 4. Building permit Answer: 1. C, 2. A, 3. D, 4. B Explanation: No […]
978-1259917059 Test Bank Chapter 3 Part 3
Bloom’s: Apply AACSB: Knowledge Application AICPA: FN Reporting 59) When the budget for the General Fund is recorded, the required journal entry will include: A) A credit to Estimated Revenues. B) A debit to Encumbrances. C) A debit to Appropriations. […]
978-1259917059 Test Bank Chapter 3 Part 2
32) Extraordinary items and special items are reported on the government-wide statement of activities. A) With normal recurring general revenues. B) As separate line items in the Function/Programs section of the statement of activities. C) As separate line items below […]
978-1259917059 Test Bank Chapter 3 Part 1
Accounting for Governmental and Nonprofit Entities, 18e (Reck) Chapter 3 Governmental Operating Statement Accounts; Budgetary Accounting 1) The government-wide statement of net position displays the net expense or revenue for each function or program of the government. Answer: FALSE Difficulty: […]
978-1259917059 Test Bank Chapter 2 Part 4
67) For each of the following scenarios, indicate how they would be classified for fund balance reporting purposes using the classification list. A. Nonspendable B. Restricted C. Committed D. Assigned E. Unassigned ________ 1. Bond proceeds of $15,000,000 that must […]
978-1259917059 Test Bank Chapter 2 Part 3
54) The measurement focus and basis of accounting that are most unlike those used by business entities are those used by A) Governmental funds. B) Fiduciary funds. C) Proprietary funds. D) Contribution funds. Answer: A Difficulty: 2 Medium Topic: Financial […]
978-1259917059 Test Bank Chapter 2 Part 2
33) According to the GASB definition, which of the following represents an inflow of resources? A) Expenditures. B) Revenues. C) Assets. D) Deferred inflows. Answer: B Difficulty: 1 Easy Topic: Conceptual Framework-Providing Useful Financial Reports Learning Objective: 02-01 Describe the […]
978-1259917059 Test Bank Chapter 2 Part 1
Accounting for Governmental and Nonprofit Entities, 18e (Reck) Chapter 2 Principles of Accounting and Financial Reporting for State and Local Governments 1) According to the guidance of GASB Concepts Statement 3, financial information can be communicated by recognition in the […]
978-1259917059 Test Bank Chapter 17 Part 3
53) The Federal Monuments Commission began operations on October 1, 2020. Prepare journal form all entries that should be made in budgetary and proprietary accounts of the agency. (If no entry is required for a transaction/event, select “No Journal Entry […]
978-1259917059 Test Bank Chapter 17 Part 2
33) A certain federal agency placed an order for office supplies at an estimated cost of $14,400. Later in the same fiscal year these supplies were received at an actual cost of $14,800. Assume commitment accounting is not used by […]
978-1259917059 Test Bank Chapter 17 Part 1
Accounting for Governmental and Nonprofit Entities, 18e (Reck) Chapter 17 Accounting and Reporting for the Federal Government 1) Responsibility for setting accounting and reporting standards for federal agencies rests primarily with the Federal Accounting Standards Advisory Board. Answer: FALSE Difficulty: […]
978-1259917059 Test Bank Chapter 16 Part 3
53) For each of the following definitions, indicate the key term from the list that best matches by placing the appropriate definition. A. Contractual adjustments B. Capitation fees C. Charity care D. Diagnosis-related groups E. Prospective payment system F. Health […]
978-1259917059 Test Bank Chapter 16 Part 2
33) Which of the following statements is true about diagnosis-related groups (DRGs)? A) DRGs are the basis for a cost accounting method that groups costs together by departments performing the services. B) A DRG is a case-mix classification scheme that […]
978-1259917059 Test Bank Chapter 16 Part 1
Accounting for Governmental and Nonprofit Entities, 18e (Reck) Chapter 16 Accounting for Health Care Organizations 1) Financial reporting standards for all hospitals are established by the FASB. Answer: FALSE Difficulty: 1 Easy Topic: GAAP for health care providers Learning Objective: […]
978-1259917059 Test Bank Chapter 15 Part 3
51) Which of the following measures may be useful to decision makers evaluating the financial condition of a college or university? A) Number of graduates. B) Composite financial index. C) Faculty productivity. D) Graduation rate. Answer: B Difficulty: 1 Easy […]
978-1259917059 Test Bank Chapter 15 Part 2
31) A private college would report which of the following assets differently than a public college? A) Land. B) Intangible assets. C) Collections. D) Equipment. Answer: B Difficulty: 2 Medium Topic: Statement of Net Position or Financial Position Learning Objective: […]
978-1259917059 Test Bank Chapter 15 Part 1
Accounting for Governmental and Nonprofit Entities, 18e (Reck) Chapter 15 Accounting for Colleges and Universities 1) Nongovernmental (private) colleges and universities should follow FASB standards; governmental (public) colleges and universities should follow GASB standards. Answer: TRUE Difficulty: 1 Easy Topic: […]
978-1259917059 Test Bank Chapter 14 Part 4
69) Record the journal entry that would be made by a nongovernmental, not-for-profit organization involved in medical research. (If no entry is required for a transaction/event, select “No Journal Entry Required” in the first account field.) 1. The entity received […]
978-1259917059 Test Bank Chapter 14 Part 3
53) A not-for-profit organization that follows FASB standards must display the changes in all classes of net assets on which of the following statements? A) Statement of activities. B) Statement of financial position. C) Statement of cash flows. D) Statement […]
978-1259917059 Test Bank Chapter 14 Part 2
32) Goodwill created because a not-for-profit organization obtains control of another organization is always recorded as an asset. Answer: FALSE Difficulty: 1 Easy Topic: Consolidations Learning Objective: 14-04 Explain accounting for NFP consolidations and combinations. Bloom’s: Remember AACSB: Knowledge Application […]
978-1259917059 Test Bank Chapter 14 Part 1
Accounting for Governmental and Nonprofit Entities, 18e (Reck) Chapter 14 Accounting for Not-for-Profit Organizations 1) Under current accounting and reporting standards, nongovernmental not-for-profit organizations must utilize the fund accounting structure set forth in the AICPA Audit and Accounting Guide Not-for-Profit […]
978-1259917059 Test Bank Chapter 13 Part 3
50) Which of the following defines an appeal to the public to take action on a legislative matter? A) Grass-roots lobbying. B) Propaganda. C) Lobbying. D) Political influence. Answer: A Difficulty: 1 Easy Topic: Federal regulation Learning Objective: 13-03 Identify […]
978-1259917059 Test Bank Chapter 13 Part 2
31) Which of the following not-for-profit organizations is most likely to be tax-exempt under IRC Sec. 501(c)(3)? A) Beta Kappa Alpha Sorority. B) Peaceful Dreams Cemetery Association. C) Regional Association of Tree Trimmers. D) Survivors of Breast Cancer Club. Answer: […]
978-1259917059 Test Bank Chapter 13 Part 1
Accounting for Governmental and Nonprofit Entities, 18e (Reck) Chapter 13 Not-for-Profit Organizations—Regulatory, Taxation, and Performance Issues 1) A state has the obligation to monitor and regulate a not-for-profit (NFP) organization because it granted the NFP tax-exempt status through the not-for-profit […]
978-1259917059 Test Bank Chapter 12 Part 3
51) For each of the following definitions, indicate the key term from the list that best matches by placing the appropriate definition. A. Efficiency measures B. Effectiveness measures C. Planning-programming-budgeting system D. Zero-based budgeting E. Program budgeting F. Flexible budgeting […]
978-1259917059 Test Bank Chapter 12 Part 2
35) Effective capital budgeting for general capital assets of a government requires: A) Intermediate and long-range capital improvement plans for general capital assets. B) Nonfinancial information on physical measures and service condition of capital assets of component units. C) Consideration […]
978-1259917059 Test Bank Chapter 12 Part 1
Accounting for Governmental and Nonprofit Entities, 18e (Reck) Chapter 12 Budgeting and Performance Measurement 1) Budgeting is an important part of a manager’s planning and control responsibilities in both public and private organizations. Answer: TRUE Difficulty: 1 Easy Topic: Objectives […]
978-1259917059 Test Bank Chapter 11 Part 4
57) Each of the following activities could be performed by an independent auditor. Select whether generally accepted government auditing standards deem each activity Acceptable (A), Prohibited (P), or Require conceptual framework assessment (R) in regarding to independence. ________ 1. Reporting […]
978-1259917059 Test Bank Chapter 11 Part 3
48) The fundamental ethical principles identified under generally accepted government auditing standards (GAGAS) include all of the following except: A) Public interest. B) Proper use of government information, resources, and position. C) Oath of office. D) Professional behavior. Answer: C […]
978-1259917059 Test Bank Chapter 11 Part 2
28) The single audit requirement applies to: A) All audits of state and local government reporting entities. B) Financial audits of all not-for-profit entities. C) Most audits of state and local governments expending federal grant funds. D) Only those governments […]
978-1259917059 Test Bank Chapter 11 Part 1
Accounting for Governmental and Nonprofit Entities, 18e (Reck) Chapter 11 Auditing of Government and Not-for-Profit Organizations 1) When financial statements are accompanied by the report of an independent auditor, users have the assurance that the statements have been prepared in […]
978-1259917059 Test Bank Chapter 10 Part 3
18 49) For each of the following financial ratios that are based on comprehensive annual financial report (CAFR) information by selecting the appropriate letter of the explanation for that ratio. Answers can only be used once. A. An indicator of […]
978-1259917059 Test Bank Chapter 10 Part 2
35) Which of the following is a measure of the extent to which the government’s business-type activities are self-supporting? A) Unrestricted net position/total revenues. B) Business-type activities revenues/business-type activities expenses. C) Total net position (governmental activities and business-type activities) less […]
978-1259917059 Test Bank Chapter 10 Part 1
Accounting for Governmental and Nonprofit Entities, 18e (Reck) Chapter 10 Analysis of Government Financial Performance 1) An effective system for evaluating financial performance helps management to assess whether financial performance can meet creditor and service obligations. Answer: TRUE Difficulty: 1 […]
978-1259917059 Test Bank Chapter 1 Part 3
49) The FASB requires that a statement showing the relationship of functional expenses to natural classifications of expense be prepared by which of the following entities? A) Colleges and universities. B) Health care entities. C) Voluntary health and welfare entities. […]