CPFO ACCOUNTING AND FINANCIAL REPORTING
(PRACTICE)
Which of the following is a true statement about the public-sector environment as it
relates to accounting and financial reporting?
A. Different operations of a government may have different financial objectives
B. There is a heightened focus on accountability
C. Both A and B
D. None of the above - Answers - C. Both A and B
In which of the following situations would individuals normally pay based upon what they
individually receive?
A. Governmental operations
B. Business-type operations
C. Both A and B
D. None of the above - Answers - B. Business-type operations
Which of the following is concerned primarily with the near-term impact of events and
transactions?
A. Governmental operations
B. Business-type operations
C. Both A and B
D. None of the above - Answers - A. Governmental operations
Which of the following would most likely be reported in a proprietary fund?
A. Taxes
B. Grants
C. Fees and charges
D. Resources held in trust - Answers - C. Fees and charges
The only real difference between an enterprise fund and an internal service fund is the
identity of the customers (enterprise fund = external customers; internal service funds =
internal customers).
A. True
B. False - Answers - B. False - in addition to the identity of the customers, internal
service funds are required to break even over time, but enterprise funds DO NOT have
to break even over time
A statement of financial position would report more assets and liabilities under which
measurement focus?
,A. Economic resources measurement focus
B. Current financial resources measurement focus
C. Neither A nor B - Answers - A. Economic resources measurement focus
Which of the following would be reported in a statement of resource flows prepared
using the current financial resources measurement focus?
A. The receipt of debt proceeds
B. Capital outlays
C. Debt service principal payments
D. All of the above
E. None of the above - Answers - D. All of the above
Which of the following would be reported in a statement of resource flows prepared
using the economic resources measurement focus?
A. The receipt of debt proceeds
B. Capital outlays
C. Debt service principal payments
D. All of the above
E. None of the above - Answers - E. None of the above
Which of the following terms could be used in a statement of resource flows prepared
using the current financial resources measurement focus?
A. Revenue
B. Gain
C. Expense
D. Loss
E. All the above
F. None of the above - Answers - A. Revenue
Which of the following could serve as a basis for a special revenue fund?
A. Grant proceeds
B. Dedicated tax increment
C. Earmarked fund balance from the general fund
D. All of the above
E. Both A and B - Answers - E. Both A and B
Which of the following could be used to report resources that are available to support
the government's own programs?
A. Permanent funds
B. Private-purpose trust funds
, C. Custodial funds
D. All of the above
E. Both A and B - Answers - A. Permanent funds - only principal is restricted, earnings
can be used on governments own programs.
How would property taxes be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions - Answers - C. Imposed nonexchange revenues
How would income taxes be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions - Answers - B. Derived tax revenues
How would billings to electrical utility customers be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions - Answers - A. Exchange/exchange-like
transactions
How would fines and forfeitures be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions - Answers - C. Imposed nonexchange revenues
How would a grant for required bilingual education programs be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions - Answers - D. Government-mandated
nonexchange transactions
(PRACTICE)
Which of the following is a true statement about the public-sector environment as it
relates to accounting and financial reporting?
A. Different operations of a government may have different financial objectives
B. There is a heightened focus on accountability
C. Both A and B
D. None of the above - Answers - C. Both A and B
In which of the following situations would individuals normally pay based upon what they
individually receive?
A. Governmental operations
B. Business-type operations
C. Both A and B
D. None of the above - Answers - B. Business-type operations
Which of the following is concerned primarily with the near-term impact of events and
transactions?
A. Governmental operations
B. Business-type operations
C. Both A and B
D. None of the above - Answers - A. Governmental operations
Which of the following would most likely be reported in a proprietary fund?
A. Taxes
B. Grants
C. Fees and charges
D. Resources held in trust - Answers - C. Fees and charges
The only real difference between an enterprise fund and an internal service fund is the
identity of the customers (enterprise fund = external customers; internal service funds =
internal customers).
A. True
B. False - Answers - B. False - in addition to the identity of the customers, internal
service funds are required to break even over time, but enterprise funds DO NOT have
to break even over time
A statement of financial position would report more assets and liabilities under which
measurement focus?
,A. Economic resources measurement focus
B. Current financial resources measurement focus
C. Neither A nor B - Answers - A. Economic resources measurement focus
Which of the following would be reported in a statement of resource flows prepared
using the current financial resources measurement focus?
A. The receipt of debt proceeds
B. Capital outlays
C. Debt service principal payments
D. All of the above
E. None of the above - Answers - D. All of the above
Which of the following would be reported in a statement of resource flows prepared
using the economic resources measurement focus?
A. The receipt of debt proceeds
B. Capital outlays
C. Debt service principal payments
D. All of the above
E. None of the above - Answers - E. None of the above
Which of the following terms could be used in a statement of resource flows prepared
using the current financial resources measurement focus?
A. Revenue
B. Gain
C. Expense
D. Loss
E. All the above
F. None of the above - Answers - A. Revenue
Which of the following could serve as a basis for a special revenue fund?
A. Grant proceeds
B. Dedicated tax increment
C. Earmarked fund balance from the general fund
D. All of the above
E. Both A and B - Answers - E. Both A and B
Which of the following could be used to report resources that are available to support
the government's own programs?
A. Permanent funds
B. Private-purpose trust funds
, C. Custodial funds
D. All of the above
E. Both A and B - Answers - A. Permanent funds - only principal is restricted, earnings
can be used on governments own programs.
How would property taxes be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions - Answers - C. Imposed nonexchange revenues
How would income taxes be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions - Answers - B. Derived tax revenues
How would billings to electrical utility customers be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions - Answers - A. Exchange/exchange-like
transactions
How would fines and forfeitures be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions - Answers - C. Imposed nonexchange revenues
How would a grant for required bilingual education programs be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions - Answers - D. Government-mandated
nonexchange transactions
