ACCT 4421 final exam comprehensive
Questions and Answers with Verified
Solutions
Question 1:
Which funds must be displayed individually in the fund financial
statements? A. All proprietary funds and all of the major governmental
funds B. All funds must be displayed individually in the fund financial
statements C. Those funds that the governing body thinks are big D.
Major funds (governmental and proprietary) are reflected while non-major
funds are grouped together.
Answer:
D. Major funds (governmental and proprietary are reflected while
non-major funds are grouped together
Question 2:
A city issues $50 million of GO bonds to improve streets and bridges. The
first interest payment of $650,000 is due in 18 months. The amount of the
liability that would be reflected in the debt service fund is A $50 million B
650,000 C $50,650,000 D 0
Answer:
D0
,Question 3:
Interperiod equity refers to a condition whereby A Total tax revenues are
approximately the same year to year B Taxes are distributed evenly
among all taxpayers C Current year revenues cover both all operating
and all capital expenditures D Current year revenues are sufficient to pay
for current year services provided
Answer:
D. current year revenues are sufficient to pay for current year services
provided
Question 4:
Shreveport issued a total of $50,000,000 of bonds to construct a city hall.
Shreveport also received a $50,000,000 grant from the state to build a
new soccer and baseball complex. The funds received for these two
projects would likely be placed in
Answer:
C. Two capital projects funds. One for the city hall and one for the sports
complex
Question 5:
Which of the following best describes a relationship of trust? A. Fiscal B.
Encumbrance C. Fiduciary D. Appropriation
Answer:
C. Fiduciary
, Question 6:
The City of Houston maintains a fleet of vehicles to be used by
employees on an "as needed" basis for work-related travel. The fleet
management department maintains the vehicles and charges other
departments a daily fee for use of these vehicles. These fees represent
the majority of revenues of the fleet management department. The fleet
management department is likely accounted for in a A Internal Service
Fund B Enterprise Fund C General Fund D Special Revenue Fund
Answer:
A. internal service fund
Question 7:
T or F Non-profit entities fall under guidance of FASB, therefore they are
not allowed to use fund accounting.
Answer:
False
Question 8:
Sally goes to work for the City of Shreveport. Employees at the City of
Shreveport participate in a pension
Answer:
A. defined benefit plan
Question 9:
The financial reporting of Tulane University is governed by A. FASAB B.
GASB C. FASB D. The legislature
Answer:
C. FASB
Questions and Answers with Verified
Solutions
Question 1:
Which funds must be displayed individually in the fund financial
statements? A. All proprietary funds and all of the major governmental
funds B. All funds must be displayed individually in the fund financial
statements C. Those funds that the governing body thinks are big D.
Major funds (governmental and proprietary) are reflected while non-major
funds are grouped together.
Answer:
D. Major funds (governmental and proprietary are reflected while
non-major funds are grouped together
Question 2:
A city issues $50 million of GO bonds to improve streets and bridges. The
first interest payment of $650,000 is due in 18 months. The amount of the
liability that would be reflected in the debt service fund is A $50 million B
650,000 C $50,650,000 D 0
Answer:
D0
,Question 3:
Interperiod equity refers to a condition whereby A Total tax revenues are
approximately the same year to year B Taxes are distributed evenly
among all taxpayers C Current year revenues cover both all operating
and all capital expenditures D Current year revenues are sufficient to pay
for current year services provided
Answer:
D. current year revenues are sufficient to pay for current year services
provided
Question 4:
Shreveport issued a total of $50,000,000 of bonds to construct a city hall.
Shreveport also received a $50,000,000 grant from the state to build a
new soccer and baseball complex. The funds received for these two
projects would likely be placed in
Answer:
C. Two capital projects funds. One for the city hall and one for the sports
complex
Question 5:
Which of the following best describes a relationship of trust? A. Fiscal B.
Encumbrance C. Fiduciary D. Appropriation
Answer:
C. Fiduciary
, Question 6:
The City of Houston maintains a fleet of vehicles to be used by
employees on an "as needed" basis for work-related travel. The fleet
management department maintains the vehicles and charges other
departments a daily fee for use of these vehicles. These fees represent
the majority of revenues of the fleet management department. The fleet
management department is likely accounted for in a A Internal Service
Fund B Enterprise Fund C General Fund D Special Revenue Fund
Answer:
A. internal service fund
Question 7:
T or F Non-profit entities fall under guidance of FASB, therefore they are
not allowed to use fund accounting.
Answer:
False
Question 8:
Sally goes to work for the City of Shreveport. Employees at the City of
Shreveport participate in a pension
Answer:
A. defined benefit plan
Question 9:
The financial reporting of Tulane University is governed by A. FASAB B.
GASB C. FASB D. The legislature
Answer:
C. FASB
