Governmental and Nonprofit : 10e
Freeman Chapter 2 Actual Exam
with Questions Passed 100%
Receipts from a special fishing tax committed to maintain the (no-charge) public -
✔✔Special Revenue Fund.
Incurring construction costs on a major general government capital project should require entries in a
- ✔✔Capital Projects Fund.
A city levies a special property tax that is legally restricted to pay off the principal and interest on bonds
issued to build the city's new police headquarters. Which fund should be used to account for the
proceeds from the tax levy? - ✔✔Debt Service Fund.
A state enacts a gasoline tax that is restricted for new highway construction. Which fund should be used
to account for the proceeds from the tax? - ✔✔Capital Projects Fund.
The General Capital Assets nonfund account would be used to account for Capital assets acquired with
governmental fund resources that will be used in - ✔✔Governmental fund activities
A government issues 10-year bonds to finance construction of an addition to city hall. The bonds
payable should be reported in the - ✔✔General Long-Term Liabilities account.
To account for amounts owed to general government bondholders that must be paid in the future,
a government should use - ✔✔General Long-Term Liabilities account.
Assume that the City of Wakefield purchased a tract of land to be used as a public park. The purchase
was financed with proceeds from a five-year note issued by a local lending institution. Because of the
time required for facilities construction and land improvements, the park itself will not be ready for
public use for at least two years. At the date of purchase, the city would most likely account for the
, transaction in - ✔✔The Capital Projects Fund, the General Capital Assets account, and the
General Long-Term Liabilities accounts.
The operation of a municipality's recreation facilities and sites such as ball fields, gymnasiums, and
tracks are most likely to be accounted for in a/an - ✔✔General Fund
To account for a donation to the City where the principal is to remain intact forever and the earnings
are to be used to benefit the Boy Scout and Girl Scout organizations in the City, the government should
use what fund type? - ✔✔Private-Purpose Trust Fund.
Caraway County financed its new $6,000,000 courthouse by issuing general obligation bonds. In the
year financing was secured and construction began, the fund(s) and/or nonfund fund accounts that
would most likely be affected would be - ✔✔The Capital Projects Fund, General Assets Accounts, and
the General Long-Term Liability Accounts.
General purpose external financial reports for state and local government entities do not include
which of the following? - ✔✔Transmittal Letter
The Basic Financial Statements include all of the following except - ✔✔Combining
financial statements.
GAAP requirements for external financial reporting include - ✔✔Not disclosures.
Basic financial statements exclude - ✔✔Management's discussion and analysis
Which of the following accounts is not included in a balance sheet of a governmental fund?
- ✔✔Equipment.
Government-wide financial statements include - ✔✔Statement of net position
A statement of revenues, expenditures, and changes in fund balance is required for each -
✔✔Special Revenue Fund.
Freeman Chapter 2 Actual Exam
with Questions Passed 100%
Receipts from a special fishing tax committed to maintain the (no-charge) public -
✔✔Special Revenue Fund.
Incurring construction costs on a major general government capital project should require entries in a
- ✔✔Capital Projects Fund.
A city levies a special property tax that is legally restricted to pay off the principal and interest on bonds
issued to build the city's new police headquarters. Which fund should be used to account for the
proceeds from the tax levy? - ✔✔Debt Service Fund.
A state enacts a gasoline tax that is restricted for new highway construction. Which fund should be used
to account for the proceeds from the tax? - ✔✔Capital Projects Fund.
The General Capital Assets nonfund account would be used to account for Capital assets acquired with
governmental fund resources that will be used in - ✔✔Governmental fund activities
A government issues 10-year bonds to finance construction of an addition to city hall. The bonds
payable should be reported in the - ✔✔General Long-Term Liabilities account.
To account for amounts owed to general government bondholders that must be paid in the future,
a government should use - ✔✔General Long-Term Liabilities account.
Assume that the City of Wakefield purchased a tract of land to be used as a public park. The purchase
was financed with proceeds from a five-year note issued by a local lending institution. Because of the
time required for facilities construction and land improvements, the park itself will not be ready for
public use for at least two years. At the date of purchase, the city would most likely account for the
, transaction in - ✔✔The Capital Projects Fund, the General Capital Assets account, and the
General Long-Term Liabilities accounts.
The operation of a municipality's recreation facilities and sites such as ball fields, gymnasiums, and
tracks are most likely to be accounted for in a/an - ✔✔General Fund
To account for a donation to the City where the principal is to remain intact forever and the earnings
are to be used to benefit the Boy Scout and Girl Scout organizations in the City, the government should
use what fund type? - ✔✔Private-Purpose Trust Fund.
Caraway County financed its new $6,000,000 courthouse by issuing general obligation bonds. In the
year financing was secured and construction began, the fund(s) and/or nonfund fund accounts that
would most likely be affected would be - ✔✔The Capital Projects Fund, General Assets Accounts, and
the General Long-Term Liability Accounts.
General purpose external financial reports for state and local government entities do not include
which of the following? - ✔✔Transmittal Letter
The Basic Financial Statements include all of the following except - ✔✔Combining
financial statements.
GAAP requirements for external financial reporting include - ✔✔Not disclosures.
Basic financial statements exclude - ✔✔Management's discussion and analysis
Which of the following accounts is not included in a balance sheet of a governmental fund?
- ✔✔Equipment.
Government-wide financial statements include - ✔✔Statement of net position
A statement of revenues, expenditures, and changes in fund balance is required for each -
✔✔Special Revenue Fund.
