ACCT 4421 Final (9-11, & NFP) - Lists and
Criteria UPDATED ACTUAL Exam
Questions and CORRECT Answers
List the components of Net Position (equity) for the Proprietary Statement of Net Position -
CORRECT ANSWER - *RUN
- Net investment in Capital Assets
- Restricted
- Unrestricted
List the 7 differences between FASB and GASB for the Statement of Cash Flows (Proprietary
Fund Statement) - CORRECT ANSWER - 1. GASB requires the direct method (indirect
not permitted)
2. GASB requires a reconciliation of OPERATING income (not net income) to net cash provided
by operations
3. GASB requires 4 (not 3) categories: Operating, Non-capital Financing, Capital Financing,
Investing
4. GASB switched the order of financing and investing
5. For GASB, interest income goes in Investing (not Operating)
6. For GASB, interest expense goes in Non-capital/Capital Financing (not Operating)
7. For GASB, capital asset purchases go in Financing (not Investing)
If an activity meets 1 of 3 criteria, it must be reported in an Enterprise Fund. List the 3 criteria. -
CORRECT ANSWER - 1. Activity financed solely with revenue debt
2. Laws/Regs require activity's cost to be recovered by fees and charges
3. Pricing policies of the activity establish fees and charges designed to recover its costs
What costs should be included in the total closure and post-closure cost of a landfill? -
CORRECT ANSWER - - Cost of equipment to be installed and facilities to be constructed
NEAR or AFTER the date the landfill stops accepting waste
, - Cost of final cover
- Cost of monitoring/maintaining landfill during post-closure period
~What costs should be included in the total pollution remediation cost? - CORRECT
ANSWER - - Pre-cleanup activities
- Cleanup activities
- Gov. oversight and enforcement-related activities
- Post-remediation monitoring
When should a government record pollution remediation costs? - CORRECT ANSWER -
When the gov. knows/believes that
- the site is polluted,
- it is responsible for the cleanup, AND
- it can make reasonable estimates
Premium amounts billed by an ISF to other departments for self-insurance must satisfy 1 of 2
criteria. List the 2 criteria. - CORRECT ANSWER - 1. Total charge covers the actual
losses incurred by the fund OR
2. Total charge is based on an actuarial or historical cost method and is adjusted over time so that
ISF revenues and expenses are approximately equal
~List the components of Fund Balance (equity) for the Governmental Funds Balance Sheet
(which includes the Permanent Fund - Ch.10) - CORRECT ANSWER - *NU CAR
- Non-spendable
- Restricted
- Committed
- Assigned
- Unassigned
Criteria UPDATED ACTUAL Exam
Questions and CORRECT Answers
List the components of Net Position (equity) for the Proprietary Statement of Net Position -
CORRECT ANSWER - *RUN
- Net investment in Capital Assets
- Restricted
- Unrestricted
List the 7 differences between FASB and GASB for the Statement of Cash Flows (Proprietary
Fund Statement) - CORRECT ANSWER - 1. GASB requires the direct method (indirect
not permitted)
2. GASB requires a reconciliation of OPERATING income (not net income) to net cash provided
by operations
3. GASB requires 4 (not 3) categories: Operating, Non-capital Financing, Capital Financing,
Investing
4. GASB switched the order of financing and investing
5. For GASB, interest income goes in Investing (not Operating)
6. For GASB, interest expense goes in Non-capital/Capital Financing (not Operating)
7. For GASB, capital asset purchases go in Financing (not Investing)
If an activity meets 1 of 3 criteria, it must be reported in an Enterprise Fund. List the 3 criteria. -
CORRECT ANSWER - 1. Activity financed solely with revenue debt
2. Laws/Regs require activity's cost to be recovered by fees and charges
3. Pricing policies of the activity establish fees and charges designed to recover its costs
What costs should be included in the total closure and post-closure cost of a landfill? -
CORRECT ANSWER - - Cost of equipment to be installed and facilities to be constructed
NEAR or AFTER the date the landfill stops accepting waste
, - Cost of final cover
- Cost of monitoring/maintaining landfill during post-closure period
~What costs should be included in the total pollution remediation cost? - CORRECT
ANSWER - - Pre-cleanup activities
- Cleanup activities
- Gov. oversight and enforcement-related activities
- Post-remediation monitoring
When should a government record pollution remediation costs? - CORRECT ANSWER -
When the gov. knows/believes that
- the site is polluted,
- it is responsible for the cleanup, AND
- it can make reasonable estimates
Premium amounts billed by an ISF to other departments for self-insurance must satisfy 1 of 2
criteria. List the 2 criteria. - CORRECT ANSWER - 1. Total charge covers the actual
losses incurred by the fund OR
2. Total charge is based on an actuarial or historical cost method and is adjusted over time so that
ISF revenues and expenses are approximately equal
~List the components of Fund Balance (equity) for the Governmental Funds Balance Sheet
(which includes the Permanent Fund - Ch.10) - CORRECT ANSWER - *NU CAR
- Non-spendable
- Restricted
- Committed
- Assigned
- Unassigned
