Gov ACCT 4421 Exam 1 Questions and
Answers 100% Solved
False Correct Answ_T or F Non-profit entities fall under guidance of FASB, therefore they
are not allowed to use fund accounting.
they are not required to Correct Answ_Non-profit entities may use fund accounting, but
Internal Service Fund Correct Answ_The City of Houston maintains a fleet of vehicles to be
used by employees on an "as needed" basis for work related travel. The fleet management
department maintains the vehicles and charges other departments within the city a daily fee for
use of these vehicles. These fees represent the majority of revenues of the fleet management
department. The fleet management department is likely accounted for in a ________.
B. Capital projects fund with total assets that represent 3% of all governmental funds assets
Correct Answ_Which of the following funds would definitely NOT be reported separately in
Fund Financial Statements? (assume the only test in question is the assets test)
A The General Fund
, B Capital projects fund with total assets that represent 3% of all governmental funds assets
C Capital Projects fund with total assets that represent 15% of assets of all funds combined
D Special Revenue fund, because Special Revenue funds are never reported separately
separately Correct Answ_The general fund and usually the special revenue fund are always
reported
two tests.
Does it exceed 10% of all governmental fund assets (since we limited this to assets)? If no, it is
not reported separately. If it is, you go to the second test, does it exceed 5% of funds combined
(governmental and non-governmental) Correct Answ_All other governmental funds are put
through:
150,000
Answers 100% Solved
False Correct Answ_T or F Non-profit entities fall under guidance of FASB, therefore they
are not allowed to use fund accounting.
they are not required to Correct Answ_Non-profit entities may use fund accounting, but
Internal Service Fund Correct Answ_The City of Houston maintains a fleet of vehicles to be
used by employees on an "as needed" basis for work related travel. The fleet management
department maintains the vehicles and charges other departments within the city a daily fee for
use of these vehicles. These fees represent the majority of revenues of the fleet management
department. The fleet management department is likely accounted for in a ________.
B. Capital projects fund with total assets that represent 3% of all governmental funds assets
Correct Answ_Which of the following funds would definitely NOT be reported separately in
Fund Financial Statements? (assume the only test in question is the assets test)
A The General Fund
, B Capital projects fund with total assets that represent 3% of all governmental funds assets
C Capital Projects fund with total assets that represent 15% of assets of all funds combined
D Special Revenue fund, because Special Revenue funds are never reported separately
separately Correct Answ_The general fund and usually the special revenue fund are always
reported
two tests.
Does it exceed 10% of all governmental fund assets (since we limited this to assets)? If no, it is
not reported separately. If it is, you go to the second test, does it exceed 5% of funds combined
(governmental and non-governmental) Correct Answ_All other governmental funds are put
through:
150,000
