Governmental Accounting (questions
with actual answers).
In which of the following funds is it appropriate to record depreciation of capital assets?
Multiple Choice
Permanent fund.
Capital projects fund.
Internal service fund.
General fund ANS -Internal service fund.
Which of the following financial statements is prepared by fiduciary funds?
Multiple Choice
Statement of fiduciary net position.
Statement of fiduciary activities.
Statement of fiduciary cash flows.
All of these answers are correct. ANS -Statement of fiduciary net position.
Each of the following are reported as fiduciary funds except:
Multiple Choice
A private-purpose trust fund.
An investment trust fund.
A permanent fund.
A custodial fund ANS -A permanent fund.
Billing and collection of special assessments and payment of debt principal and interest on special
assessment debt for which the city is not obligated in any manner should be recorded in a(n):
,Multiple Choice
Custodial fund.
Capital projects fund.
Special assessment fund.
Debt service fund ANS -Custodial fund.
Which of the following properly portrays the components of net position for proprietary funds?
Multiple Choice
Contributed capital, Net investment in capital assets, Reserved, Unreserved.
Net investment in capital assets, Reserved, Unreserved.
Designated, Undesignated, Restricted, Unrestricted.
Net investment in capital assets, Restricted, Unrestricted ANS -Net investment in capital assets,
Restricted, Unrestricted
The comprehensive annual financial report (CAFR) of a government should contain a statement of
revenues, expenses, and changes in fund net position for which of the following?
Multiple Choice
Proprietary and fiduciary funds.
Both proprietary and governmental funds.
Governmental but not proprietary funds.
Proprietary but not governmental funds ANS -Proprietary but not governmental funds
Which of the following is the appropriate basis of accounting for a custodial fund?
, Multiple Choice
Modified accrual basis.
Cash basis.
Modified cash basis.
Accrual basis ANS -Accrual basis
Which of the following may properly be reported as a component of net position in the proprietary fund
statement of net position?
Multiple Choice
Restricted net position.
Correct
Retained earnings.
Contributed capital.
Designated equity ANS -Designated equity
Which of the following is the appropriate measurement focus for custodial funds?
Multiple Choice
Current financial resources.
Accrual basis.
Economic resources.
Cash and cash equivalents ANS -Economic resources.
Which of the following is not true regarding proprietary funds?
Multiple Choice
The difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of
resources of proprietary funds is called net assets.
with actual answers).
In which of the following funds is it appropriate to record depreciation of capital assets?
Multiple Choice
Permanent fund.
Capital projects fund.
Internal service fund.
General fund ANS -Internal service fund.
Which of the following financial statements is prepared by fiduciary funds?
Multiple Choice
Statement of fiduciary net position.
Statement of fiduciary activities.
Statement of fiduciary cash flows.
All of these answers are correct. ANS -Statement of fiduciary net position.
Each of the following are reported as fiduciary funds except:
Multiple Choice
A private-purpose trust fund.
An investment trust fund.
A permanent fund.
A custodial fund ANS -A permanent fund.
Billing and collection of special assessments and payment of debt principal and interest on special
assessment debt for which the city is not obligated in any manner should be recorded in a(n):
,Multiple Choice
Custodial fund.
Capital projects fund.
Special assessment fund.
Debt service fund ANS -Custodial fund.
Which of the following properly portrays the components of net position for proprietary funds?
Multiple Choice
Contributed capital, Net investment in capital assets, Reserved, Unreserved.
Net investment in capital assets, Reserved, Unreserved.
Designated, Undesignated, Restricted, Unrestricted.
Net investment in capital assets, Restricted, Unrestricted ANS -Net investment in capital assets,
Restricted, Unrestricted
The comprehensive annual financial report (CAFR) of a government should contain a statement of
revenues, expenses, and changes in fund net position for which of the following?
Multiple Choice
Proprietary and fiduciary funds.
Both proprietary and governmental funds.
Governmental but not proprietary funds.
Proprietary but not governmental funds ANS -Proprietary but not governmental funds
Which of the following is the appropriate basis of accounting for a custodial fund?
, Multiple Choice
Modified accrual basis.
Cash basis.
Modified cash basis.
Accrual basis ANS -Accrual basis
Which of the following may properly be reported as a component of net position in the proprietary fund
statement of net position?
Multiple Choice
Restricted net position.
Correct
Retained earnings.
Contributed capital.
Designated equity ANS -Designated equity
Which of the following is the appropriate measurement focus for custodial funds?
Multiple Choice
Current financial resources.
Accrual basis.
Economic resources.
Cash and cash equivalents ANS -Economic resources.
Which of the following is not true regarding proprietary funds?
Multiple Choice
The difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of
resources of proprietary funds is called net assets.
