ACCY 407 Exam 2024 with Guaranteed Accurate Answers

Which of the following is true regarding financial reporting for internal service funds? A. Internal service funds are reported in the governmental fund financial statements. B. Internal service funds are aggregated and reported as a major fund in the proprietary fund financial statements. C. Internal service funds are generally reported in the Business-type Activities column of the government-wide financial statements. D. Internal service funds are generally reported in the Governmental Activities column of the government-wide financial statements. - correct answer D. Internal service funds are generally reported in the Governmental Activities column of the government-wide financial statements. Which of the following is not a characteristic of a fund as defined by GASB standards? A. An accounting entity. B. A fiscal entity. C. A reporting entity. D. A self-balancing set of accounts. - correct answer C. A reporting entity. In accounting for state and local governments the modified accrual basis is required for A. Proprietary and fiduciary funds. B. Governmental funds. C. Governmental and fiduciary funds. D. Governmental and internal service funds. - correct answer B. Governmental funds. Under the modified accrual basis of accounting, revenues should be recognized when A. Earned. B. Collected in cash. C. Authorized by the budget ordinance. D. Measurable and available. - correct answer D. Measurable and available. The accrual basis of accounting applicable to proprietary fund types requires that exchange revenues be recognized when A. Earned. B. Collected in cash. C. Authorized by the budget ordinance. D. Measurable and available. - correct answer A. Earned. Which of the following funds is a governmental fund-type? A. Private-purpose trust fund. B. Internal service fund. C. Permanent fund. D. Enterprise fund. - correct answer C. Permanent fund. Financial resources set aside to pay principal and interest on general long-term debt may be accounted for in which of the following fund types? A. Priv