G&NFP Exam 2 Review Questions and Answers 100% Pass

G&NFP Exam 2 Review Questions and Answers 100% Pass Government financial reports should be useful in assessing a government's accountability. Three objectives of government financial reporting identify how financial reporting can be useful in assessing a government's accountability. Which of the following is not related to one of the objectives? a. Providing information on operating results for the current period. b. Providing information on meeting current year service performance goals. c. Providing information related to the provision of - b Which of the following amounts that are identified at the end of the fiscal year would be classified as an assigned fund balance? 2 Katelyn Whitman, All Rights Reserved © 2025 a. Resources the city manager has set aside for a major street repair. b. A federal grant that is to be used for playground equipment. c. Significant amounts of inventory. d. Endowment resources that the city must maintain in perpetuity. - a How does the GASB recommend governments report budgetary information? a. As a required financial statement. b. As a note disclosure. c. As required supplementary information. d. As other supplementary information. - c The measurement focus and basis of accounting that should be used for the government-wide financial statements are 3 Katelyn Whitman, All Rights Reserved © 2025 a. Current financial resources - Modified accrual b. Current financial resources - Accrual c. Economic resources - Modified accrual d. Economic resources - Accrual - d Which of the following statements is true regarding the basic financial statements of a state or local government? a. Separate columns should be provided in the government-wide financial statements for governmental activities and business-type activities. b. Governmental fund and proprietary fund financial statements should provide a separate column for each major fund. c. Aggregate information about all nonmajor governmental funds should be reported in a single column of the governmental fund - all Under the modified accrual basis of accounting: 4 Katelyn Whitman, All Rights Reserved © 2025 a. Revenues are recognized at the time an exchange transaction occurs. b. Expenditures are recognized as the cost of an asset expires or is used up in providing government services. c. Revenues are recognized when current financial resources become measurable and available to pay current-period obligations. d. Expenses are recognized when an obligation occurs for costs incurred in providing services. - c Choose the type of fund that would most likely be reported in the examples given: Costs of a central printing function. a. custodial b. capital projects c. debt service 5 Katelyn Whitman, All Rights Reserved © 2025 d. enterprise e. general f. internal service g. investment trust h. pension (and other employee benefit) trust i. permanent j. private-purpose trust k. special revenue - f Choose the type of fund that would most likely be reported in the examples given: Construction of public buildings. a. custodial b. capital projects 6 Katelyn Whitman, All Rights Reserved © 2025 c. debt service d. enterprise e. general f. internal service g. investment trust h. pension (and other employee benefit) trust i. permanent j. private-purpose trust k. special revenue - b Choose the type of fund that would most likely be reported in the examples given: Gifts in which the principal must be invest