Government Accounting Final Exam with
verified answers latest update
Where is the net pension liability shown in a Comprehensive Annual Financial Report for
employees of governmental type activities? - correct answer ✔✔The government-wide
Statement of Net Position
A special assessment tax is: - correct answer ✔✔Asses only against certain property owners
who are deemed to benefit from the service or project being paid for by the proceeds of the
special assessment levy.
Which of the following statements regarding employer reporting of pension trust funds is not
correct?
A. Contributions by the government funds are recorded as expenditures in the General Fund.
B. Thhe net pension liabilities are reported in the government-wide statements.
C. The net pension liabilities of proprietary fund employees are reported in the proprietary
fund-basis statement.
D. Governmental funds report net pension liabilities of governmental fund employees as a fund
liability. - correct answer ✔✔C.
Special-purpose governments generally provide a limited set of services or programs. T/F -
correct answer ✔✔TRUE
Governmental health care entities, public school systems, and museums are commonly
accounted for as special-purpose governments. T/F - correct answer ✔✔True
,Special-purpose governments that are engaged in more than one governmental activity are
permitted to combine the fund and government-wide financial statements. T/F - correct answer
✔✔False
A downtown shopping district desires additional police patrols and agrees to pay for the service
through a special assessment property tax. Which fund should be used to account for the
special assessment tax proceeds? - correct answer ✔✔Agency
The projected returns exceed actual returns on pension plan assets for a government offering a
defined benefit pension plan. How would the resulting increase in the net pension liability be
recognized in the financial statements in the year this difference is recognized? - correct answer
✔✔The increase in net position liability would be deferred and amortized over five years.
So long as the reporting government is not primarily responsible for debt under a construction
type special assessment, the special assessment may be reported in an Agency Fund. T/F -
correct answer ✔✔False
Which of the following items does not increase the net pension liability and pension expense for
a government offering a defined benefit pension plan?
A. Service Costs
B. Interest
C. Benefit payments to retired employees
D. Non of the above, all of these increase net pension liability and pension expense - correct
answer ✔✔C.
A government offering a defined benefit pension plan changes the plan terms with the result
that pension benefit are increased. How would the resulting increase in the net pension liability
be recognized in the financial statements in the year the plan is changed? - correct answer
✔✔The increase in net pension liability would be expensed in the period the plan is changed
, Capital assets acquired through capital leases by the General Fund are reported in the General
Fund Balance Sheet. T/F - correct answer ✔✔False
Special assessment taxes may be levied to finance construction projects or to provide current
services. T/F - correct answer ✔✔True
Differences between the projected and actual returns on pension plan investments are deferred
and recognized in expense over a five year period. T/F - correct answer ✔✔True
Financial reporting for a special-purpose local government depends on whether that
government is engaged in governmental-type, business-type or fiduciary-type activities. T/F -
correct answer ✔✔True
At the inception of a capital lease agreement for a piece of equipment used in governmental
operations. - correct answer ✔✔Both the liability is incurred and reported in the government-
wide financial statements; and an expenditure is recorded in the governmental fund.
Which of the following would not be considered a special-purpose government for financial
reporting purposes?
A. A public school system
B. An art museum.
C.A public hospital
D. A county board of supervisors - correct answer ✔✔D
When governments construct projects that are financed with special assessment debt
guaranteed by the government, those projects would be accounted for in the General Fund or a
capital projects fund. T/F - correct answer ✔✔True
verified answers latest update
Where is the net pension liability shown in a Comprehensive Annual Financial Report for
employees of governmental type activities? - correct answer ✔✔The government-wide
Statement of Net Position
A special assessment tax is: - correct answer ✔✔Asses only against certain property owners
who are deemed to benefit from the service or project being paid for by the proceeds of the
special assessment levy.
Which of the following statements regarding employer reporting of pension trust funds is not
correct?
A. Contributions by the government funds are recorded as expenditures in the General Fund.
B. Thhe net pension liabilities are reported in the government-wide statements.
C. The net pension liabilities of proprietary fund employees are reported in the proprietary
fund-basis statement.
D. Governmental funds report net pension liabilities of governmental fund employees as a fund
liability. - correct answer ✔✔C.
Special-purpose governments generally provide a limited set of services or programs. T/F -
correct answer ✔✔TRUE
Governmental health care entities, public school systems, and museums are commonly
accounted for as special-purpose governments. T/F - correct answer ✔✔True
,Special-purpose governments that are engaged in more than one governmental activity are
permitted to combine the fund and government-wide financial statements. T/F - correct answer
✔✔False
A downtown shopping district desires additional police patrols and agrees to pay for the service
through a special assessment property tax. Which fund should be used to account for the
special assessment tax proceeds? - correct answer ✔✔Agency
The projected returns exceed actual returns on pension plan assets for a government offering a
defined benefit pension plan. How would the resulting increase in the net pension liability be
recognized in the financial statements in the year this difference is recognized? - correct answer
✔✔The increase in net position liability would be deferred and amortized over five years.
So long as the reporting government is not primarily responsible for debt under a construction
type special assessment, the special assessment may be reported in an Agency Fund. T/F -
correct answer ✔✔False
Which of the following items does not increase the net pension liability and pension expense for
a government offering a defined benefit pension plan?
A. Service Costs
B. Interest
C. Benefit payments to retired employees
D. Non of the above, all of these increase net pension liability and pension expense - correct
answer ✔✔C.
A government offering a defined benefit pension plan changes the plan terms with the result
that pension benefit are increased. How would the resulting increase in the net pension liability
be recognized in the financial statements in the year the plan is changed? - correct answer
✔✔The increase in net pension liability would be expensed in the period the plan is changed
, Capital assets acquired through capital leases by the General Fund are reported in the General
Fund Balance Sheet. T/F - correct answer ✔✔False
Special assessment taxes may be levied to finance construction projects or to provide current
services. T/F - correct answer ✔✔True
Differences between the projected and actual returns on pension plan investments are deferred
and recognized in expense over a five year period. T/F - correct answer ✔✔True
Financial reporting for a special-purpose local government depends on whether that
government is engaged in governmental-type, business-type or fiduciary-type activities. T/F -
correct answer ✔✔True
At the inception of a capital lease agreement for a piece of equipment used in governmental
operations. - correct answer ✔✔Both the liability is incurred and reported in the government-
wide financial statements; and an expenditure is recorded in the governmental fund.
Which of the following would not be considered a special-purpose government for financial
reporting purposes?
A. A public school system
B. An art museum.
C.A public hospital
D. A county board of supervisors - correct answer ✔✔D
When governments construct projects that are financed with special assessment debt
guaranteed by the government, those projects would be accounted for in the General Fund or a
capital projects fund. T/F - correct answer ✔✔True
