ACCOUNTING FOR GOVERNMENTAL AND
NONPROFIT ENTITIES CERTIFICATION
EVALUATION EXAMS SET FULL QUESTIONS
AND COMPLETE SOLUTION
●● Estimated revenue from property taxes levied for the General Fund
of the Village of Oak Park is $100,000. Based on collections in recent
years, approximately 3% of gross tax levy will never be collected. The
gross levy of property taxes for this fund should be:
Answer: $103,093
●● If the General Fund makes a 180-day loan to the Library Operating
Fund, a special revenue fund, the journal entry recorded by the General
Fund will include a debit to:
Answer: Interfund Loans Receivable - Current
●● Fund Balance Equation:
Answer: Total Assets - (Total Liabilities + Deferred Inflows of
Resources of the General Fund)
●● If one fund transfers money to another and the receiving fund is not
expected to repay the amount transferred:
Answer: - The transfer is non reciprocal in nature
, - The transfer is considered an interfund transfer
●● Which of the following transactions is reported on the government-
wide financial statements of a city?
Answer: An enterprise fund transfers a portion of fees charged to
customers to the General Fund
●● If the General Fund makes a long-term loan in the amount of
$10,000 to the Library Operating Fund, a special revenue fund, the
General Fund will record a journal entry that includes a debit to:
Answer: Fund Balance - Unassigned
●● Which of the following statements about the gov-wide statement of
net position and General Fund balance sheet is correct?
Answer: The statement of net position reports financial info in a more
condensed manner than does the General Fund balance sheet
●● True or False: Net position at the gov-wide level and fund balances
at the fund level are analogous to the stockholders' equity of an investor-
owned equity
Answer: False
●● During the current year, Star County levied $3,000,000 in property
taxes, 1.5% of which is expected to be uncollectible. During the year, the
county collected $2,700,000 and wrote off $25,000 as uncollectible.
NONPROFIT ENTITIES CERTIFICATION
EVALUATION EXAMS SET FULL QUESTIONS
AND COMPLETE SOLUTION
●● Estimated revenue from property taxes levied for the General Fund
of the Village of Oak Park is $100,000. Based on collections in recent
years, approximately 3% of gross tax levy will never be collected. The
gross levy of property taxes for this fund should be:
Answer: $103,093
●● If the General Fund makes a 180-day loan to the Library Operating
Fund, a special revenue fund, the journal entry recorded by the General
Fund will include a debit to:
Answer: Interfund Loans Receivable - Current
●● Fund Balance Equation:
Answer: Total Assets - (Total Liabilities + Deferred Inflows of
Resources of the General Fund)
●● If one fund transfers money to another and the receiving fund is not
expected to repay the amount transferred:
Answer: - The transfer is non reciprocal in nature
, - The transfer is considered an interfund transfer
●● Which of the following transactions is reported on the government-
wide financial statements of a city?
Answer: An enterprise fund transfers a portion of fees charged to
customers to the General Fund
●● If the General Fund makes a long-term loan in the amount of
$10,000 to the Library Operating Fund, a special revenue fund, the
General Fund will record a journal entry that includes a debit to:
Answer: Fund Balance - Unassigned
●● Which of the following statements about the gov-wide statement of
net position and General Fund balance sheet is correct?
Answer: The statement of net position reports financial info in a more
condensed manner than does the General Fund balance sheet
●● True or False: Net position at the gov-wide level and fund balances
at the fund level are analogous to the stockholders' equity of an investor-
owned equity
Answer: False
●● During the current year, Star County levied $3,000,000 in property
taxes, 1.5% of which is expected to be uncollectible. During the year, the
county collected $2,700,000 and wrote off $25,000 as uncollectible.
