Gov ACCT 4421 Exam 1 UPDATED
ACTUAL Exam Questions and CORRECT
Answers
A. Retained - CORRECT ANSWER - Which of the following is NOT a proper
categorization of a fund balance?
A Retained B Committed C Assigned D Restricted
enterprise - CORRECT ANSWER - A city golf course is primarily funded by the user fees
(known as greens fees) and proceeds from the concession sales. The operations of the city golf
course would likely be accounted for in a ___ fund
proprietary - CORRECT ANSWER - Business activities that are partially funded by user
fees are accounted for in ___ funds
Enterprise - CORRECT ANSWER - ___ funds are used when fees come from outside
parties.
Internal service fund - CORRECT ANSWER - ___ funds are used when fees come from
other departments within the governmental unit.
FASB - CORRECT ANSWER - Which governing body provides authoritative guidance to
non-profit entities regarding financial reporting
FASB - CORRECT ANSWER - ___ covers businesses AND non- profit accounting and
reporting
GASB - CORRECT ANSWER - ___ covers state and local accounting and reporting.
FASAB - CORRECT ANSWER - ___ covers federal accounting and reporting.
, Permanent Fund - CORRECT ANSWER - The City of Clinton, Louisiana received a gift
of $1,000,000 that is to be invested and only the interest can be spent by the city. The interest
income is to be used to maintain the city parks. What type of fund will be set up for this money?
permanent fund; governmental fund - CORRECT ANSWER - If the interest on an
endowment type arrangement is dedicated to pay for government services, maintenance of
government assets or benefit citizens, it goes in a ___, which is a ___.
fiduciary fund - CORRECT ANSWER - Money held permanently from which interest is
used for purposes outside of the government and its citizens would be held in a ___
C. Capital Service Fund - CORRECT ANSWER - Governmental Funds include which of
the following:
A. Fiduciary Fund
B. Internal Service Fund C. Capital Project Fund D. Trust Fund
General
Capital Projects
Debt Service
Special Revenue
Permanent - CORRECT ANSWER - The 5 governmental types of funds are:
Enterprise and internal service - CORRECT ANSWER - What are the 2 proprietary funds?
Governmental Funds - CORRECT ANSWER - Which of the following financial
statements are prepared using the modified accrual basis of accounting and thus do not report
long term assets?
ACTUAL Exam Questions and CORRECT
Answers
A. Retained - CORRECT ANSWER - Which of the following is NOT a proper
categorization of a fund balance?
A Retained B Committed C Assigned D Restricted
enterprise - CORRECT ANSWER - A city golf course is primarily funded by the user fees
(known as greens fees) and proceeds from the concession sales. The operations of the city golf
course would likely be accounted for in a ___ fund
proprietary - CORRECT ANSWER - Business activities that are partially funded by user
fees are accounted for in ___ funds
Enterprise - CORRECT ANSWER - ___ funds are used when fees come from outside
parties.
Internal service fund - CORRECT ANSWER - ___ funds are used when fees come from
other departments within the governmental unit.
FASB - CORRECT ANSWER - Which governing body provides authoritative guidance to
non-profit entities regarding financial reporting
FASB - CORRECT ANSWER - ___ covers businesses AND non- profit accounting and
reporting
GASB - CORRECT ANSWER - ___ covers state and local accounting and reporting.
FASAB - CORRECT ANSWER - ___ covers federal accounting and reporting.
, Permanent Fund - CORRECT ANSWER - The City of Clinton, Louisiana received a gift
of $1,000,000 that is to be invested and only the interest can be spent by the city. The interest
income is to be used to maintain the city parks. What type of fund will be set up for this money?
permanent fund; governmental fund - CORRECT ANSWER - If the interest on an
endowment type arrangement is dedicated to pay for government services, maintenance of
government assets or benefit citizens, it goes in a ___, which is a ___.
fiduciary fund - CORRECT ANSWER - Money held permanently from which interest is
used for purposes outside of the government and its citizens would be held in a ___
C. Capital Service Fund - CORRECT ANSWER - Governmental Funds include which of
the following:
A. Fiduciary Fund
B. Internal Service Fund C. Capital Project Fund D. Trust Fund
General
Capital Projects
Debt Service
Special Revenue
Permanent - CORRECT ANSWER - The 5 governmental types of funds are:
Enterprise and internal service - CORRECT ANSWER - What are the 2 proprietary funds?
Governmental Funds - CORRECT ANSWER - Which of the following financial
statements are prepared using the modified accrual basis of accounting and thus do not report
long term assets?
