1) Unexpended intergovernmental grants and taxes dedicated to capital improvements
in a capital projects fund are likely to be classified as Restricted Fund Balance
2) Financial statements prepared for private colleges and universities present net assets
as: unrestricted, restricted, or net investment in capital assets.
3) According to GASB 34, restricted Net Positioninclude those that are the results of
constraints imposed by law through constitutional provisions or enabling legislation.
4) When preparing the government-wide statements, a worksheet entry is required to
eliminate the current period expenditures for capital outlay and record those
expenditures as capital assets
5) A Pooled life income fund is a type of split-interest agreement.
6) Contractual adjustments from insurance companies are reported as expenses in the
Statement of Operations.
7) An enterprise fund should be used when debt is back solely by fees and charges
8) The Financial Accounting Standards Board sets financial reporting standards for
private not-for-profits and investor-owned businesses.
9) Entities that are tax-exempt under IRS Section 501(c)(3) are permitted to endorse
political candidates or attempt to influence legislation.
10) Assume a government reported $300,000 in capital outlay expenditures in the
governmental fund Statement of Revenues, Expenditures, and Changes in Fund
Balances. Secondly, assume accumulated depreciation of capital assets amounted to
$250,000, in the governmental activities column in the Statement of Activities. Those
adjustments would cause a decrease of $50,000 when preparing the reconciliation
between the change in governmental fund balances to the change in net positionof
governmental activities in the Statement of Activities.
11) Entities that expend $500,000 or less of federal funds are generally required to have
a single audit.