ACCT 4421 Ch 7 & 8 Questions with Correct
Answers
Which of the following organizations or units would least likely be accounted for by an
enterprise fund?
- A golf course.
- A sports stadium.
- A motor pool.
- An airport. Correct Answ_A motor pool.
Other postemployment benefits may include which of the following?
- Health care.
- Life insurance.
- Long-term care.
- All of these answers are correct. Correct Answ_All of these answers are correct.
Which of the following financial statements is prepared by fiduciary funds?
- Statement of fiduciary net position.
- Statement of fiduciary activities.
,- Statement of fiduciary cash flows.
- All of these answers are correct. Correct Answ_Statement of fiduciary net position.
Which of the following may properly be reported as a component of net position in the
proprietary fund statement of net position?
- Retained earnings.
- Designated equity,
- Contributed capital.
- Restricted net position. Correct Answ_Restricted net position.
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?
- Governmental but not proprietary funds.
- Both proprietary and governmental funds.
- Proprietary and fiduciary funds.
- Proprietary but not governmental funds. Correct Answ_Proprietary but not governmental
funds.
,Which of the following is the appropriate measurement focus for custodial funds? Correct
Answ_Economic resources.
Each of the following are reported as fiduciary funds except:
- A permanent fund.
- A custodial fund.
- An investment trust fund.
- A private-purpose trust fund. Correct Answ_A permanent fund.
Which of the following illustrates the appropriate basis of accounting for enterprise and internal
service funds? Correct Answ_Enterprise Funds - Accrual
Internal Service Funds - Accrual
A single-employer defined benefit plan prepares a number of schedules as required
supplementary material under GASB standards. Which of the following is not a required
schedule?
- A 10-year schedule of changes in pension liability.
, - A 10-year schedule of employer contributions, based on the actuarially determined contribution
for employer and nonemployer contributing entities.
- A 10-year schedule of rate of return on pension plan investments.
- A 10-year schedule of active and retired plan participants. Correct Answ_A 10-year
schedule of active and retired plan participants.
In which of the following funds is it appropriate to record depreciation of capital assets?
Correct Answ_Internal service 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): Correct Answ_Custodial fund.
During the current fiscal year, the Palm Springs government recorded a $15,400 transfer from
the General Fund to an internal service fund, a $25,400 transfer from the General Fund to an
enterprise fund, a $5,500 transfer from an enterprise fund to an internal service fund, and a
$10,600 transfer from an enterprise fund to the General Fund. In the Business-type Activities
column of the government-wide financial statements, Palm Springs should report Correct
Answ_Net transfers in of $9,300.
Answers
Which of the following organizations or units would least likely be accounted for by an
enterprise fund?
- A golf course.
- A sports stadium.
- A motor pool.
- An airport. Correct Answ_A motor pool.
Other postemployment benefits may include which of the following?
- Health care.
- Life insurance.
- Long-term care.
- All of these answers are correct. Correct Answ_All of these answers are correct.
Which of the following financial statements is prepared by fiduciary funds?
- Statement of fiduciary net position.
- Statement of fiduciary activities.
,- Statement of fiduciary cash flows.
- All of these answers are correct. Correct Answ_Statement of fiduciary net position.
Which of the following may properly be reported as a component of net position in the
proprietary fund statement of net position?
- Retained earnings.
- Designated equity,
- Contributed capital.
- Restricted net position. Correct Answ_Restricted net position.
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?
- Governmental but not proprietary funds.
- Both proprietary and governmental funds.
- Proprietary and fiduciary funds.
- Proprietary but not governmental funds. Correct Answ_Proprietary but not governmental
funds.
,Which of the following is the appropriate measurement focus for custodial funds? Correct
Answ_Economic resources.
Each of the following are reported as fiduciary funds except:
- A permanent fund.
- A custodial fund.
- An investment trust fund.
- A private-purpose trust fund. Correct Answ_A permanent fund.
Which of the following illustrates the appropriate basis of accounting for enterprise and internal
service funds? Correct Answ_Enterprise Funds - Accrual
Internal Service Funds - Accrual
A single-employer defined benefit plan prepares a number of schedules as required
supplementary material under GASB standards. Which of the following is not a required
schedule?
- A 10-year schedule of changes in pension liability.
, - A 10-year schedule of employer contributions, based on the actuarially determined contribution
for employer and nonemployer contributing entities.
- A 10-year schedule of rate of return on pension plan investments.
- A 10-year schedule of active and retired plan participants. Correct Answ_A 10-year
schedule of active and retired plan participants.
In which of the following funds is it appropriate to record depreciation of capital assets?
Correct Answ_Internal service 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): Correct Answ_Custodial fund.
During the current fiscal year, the Palm Springs government recorded a $15,400 transfer from
the General Fund to an internal service fund, a $25,400 transfer from the General Fund to an
enterprise fund, a $5,500 transfer from an enterprise fund to an internal service fund, and a
$10,600 transfer from an enterprise fund to the General Fund. In the Business-type Activities
column of the government-wide financial statements, Palm Springs should report Correct
Answ_Net transfers in of $9,300.
