ACC 501: CHAPTER 16 - GOVERNMENTAL ACCOUNTING:
OTHER GOVERNMENTAL FUNDS, PROPRIETARY FUNDS,
AND FIDUCIARY FUNDS (LATEST UPDATE) REAL
QUESTIONS AND VERIFIED ANSWERS |100% CORRECT |
ALREADY GRADED A
In a Special Revenue Fund, sufficient revenue should exist to fund the
activities, but funds should not accumulate beyond reasonable needs.
Ans✓✓✓True
Public Purpose Trusts are accounted for in the Permanent Funds, which
are accounted for under the modified cash basis. Ans✓✓✓False - Public
Purpose Trusts are accounted for in the Permanent Funds, which are
accounted for under the modified accrual basis.
The primary function of debt service funds is to account for financial
resources accumulated to cover the payment of principal and interest on
general government obligations. Ans✓✓✓True
In the Statement of Cash Flow for a Proprietary Fund, the acquisition or
disposition of a fixed asset, and related grants or transfers, would be
excluded in cash flows from capital and related financing activities.
Ans✓✓✓False - In the Statement of Cash Flow for a Proprietary Fund,
the acquisition or disposition of a fixed asset, and related grants or
transfers, would be included in cash flows from capital and related
financing activities.
The Pension Trust Fund is a Fiduciary Fund, which will be accounted
for using the accrual basis of accounting. Ans✓✓✓True
, The financial statements of fiduciary funds include Fund Balances, and
Net Assets. Ans✓✓✓False - The financial statements of fiduciary funds
do not include Fund Balances, but Net Assets
When the General Fund sends fund to another fund, for which it does
not expect repayment, it is considered an Expenditure. Ans✓✓✓False -
When the General Fund sends fund to another fund, for which it does
not expect re-payment, it is considered an Other Financing Use.
Proceeds from the sale of general obligation bonds would be considered
an other financing source. Ans✓✓✓True
Special revenue funds are used when revenues are collected for a general
purpose and not attributed to any specific project. Ans✓✓✓False -
Special revenue funds are used when revenues are collected for a
specific purpose, such as road repair or education.
The primary purpose of Debt Service funds is to serve as monies set
aside for an insubstance defeasance Ans✓✓✓False - The primary
purpose of Debt Service funds is to account for financial resources
accumulated to cover the payment of principal and interest on general
government obligations.
Which of the following fund types have accounting principles most
closely related to those of the General Fund? Ans✓✓✓Special Revenues
// Special Revenue funds, like the general fund, are governmental funds
OTHER GOVERNMENTAL FUNDS, PROPRIETARY FUNDS,
AND FIDUCIARY FUNDS (LATEST UPDATE) REAL
QUESTIONS AND VERIFIED ANSWERS |100% CORRECT |
ALREADY GRADED A
In a Special Revenue Fund, sufficient revenue should exist to fund the
activities, but funds should not accumulate beyond reasonable needs.
Ans✓✓✓True
Public Purpose Trusts are accounted for in the Permanent Funds, which
are accounted for under the modified cash basis. Ans✓✓✓False - Public
Purpose Trusts are accounted for in the Permanent Funds, which are
accounted for under the modified accrual basis.
The primary function of debt service funds is to account for financial
resources accumulated to cover the payment of principal and interest on
general government obligations. Ans✓✓✓True
In the Statement of Cash Flow for a Proprietary Fund, the acquisition or
disposition of a fixed asset, and related grants or transfers, would be
excluded in cash flows from capital and related financing activities.
Ans✓✓✓False - In the Statement of Cash Flow for a Proprietary Fund,
the acquisition or disposition of a fixed asset, and related grants or
transfers, would be included in cash flows from capital and related
financing activities.
The Pension Trust Fund is a Fiduciary Fund, which will be accounted
for using the accrual basis of accounting. Ans✓✓✓True
, The financial statements of fiduciary funds include Fund Balances, and
Net Assets. Ans✓✓✓False - The financial statements of fiduciary funds
do not include Fund Balances, but Net Assets
When the General Fund sends fund to another fund, for which it does
not expect repayment, it is considered an Expenditure. Ans✓✓✓False -
When the General Fund sends fund to another fund, for which it does
not expect re-payment, it is considered an Other Financing Use.
Proceeds from the sale of general obligation bonds would be considered
an other financing source. Ans✓✓✓True
Special revenue funds are used when revenues are collected for a general
purpose and not attributed to any specific project. Ans✓✓✓False -
Special revenue funds are used when revenues are collected for a
specific purpose, such as road repair or education.
The primary purpose of Debt Service funds is to serve as monies set
aside for an insubstance defeasance Ans✓✓✓False - The primary
purpose of Debt Service funds is to account for financial resources
accumulated to cover the payment of principal and interest on general
government obligations.
Which of the following fund types have accounting principles most
closely related to those of the General Fund? Ans✓✓✓Special Revenues
// Special Revenue funds, like the general fund, are governmental funds
