Governmental Accounting Midterm
questions and answers.
Governmental funds include:
A) Special revenue funds
B) Internal service funds
C) Debt service funds
D) A and C ANS -D) A and C
The "Hierarchy of GAAP" is established by the:
A) Financial Accounting Standards Board.
B) Federal Accounting Standards Advisory Board
C) Governmental Accounting Standards Board
D) All of the above have established a hierarchy ANS -D) All of the above have established a hierarchy
The term "proprietary funds" applies to:
A) all funds that use accrual accounting.
B) enterprise and internal service funds only.
C) enterprise, internal service, and private-purpose trust funds.
D) none of the above answers are correct. ANS -B) enterprise and internal service funds only.
The term "fiduciary funds" applies to:
A) enterprise and internal service funds.
B) pension, investment trust and enterprise funds
C) enterprise, internal service, and private-purpose trust funds.
D) none of the above answers are correct. ANS -D) none of the above answers are correct.
The GASB sets accounting standards for all of the following except:
,A) State and local governments
B) Component units owned or controlled by governments
C) Governmentally related not-for-profit universities
D) Nongovernmental not-for-profit hospital ANS -D) Nongovernmental not-for-profit hospital
Which of the following fund types is present in every general-purpose government?
A) Permanent
B) Special revenue
C) General
D) Capital projects ANS -C) General
Which of the following is a proprietary fund?
A) Investment trust
B) Permanent
C) Special revenue
D) Internal service ANS -D) Internal service
Which of the following is not a fiduciary fund?
A) Agency
B) Permanent
C) Pension trust
D) Private-purpose trust ANS -B) Permanent
Which of the following is a governmental fund?
A) Agency
B) Enterprise
C) Special revenue
D) Internal service ANS -C) Special revenue
, Which of the following is not one of the objectives of Federal Financial Reporting, as outlined in SFFAC 1,
which was issued by the FASAB?
A) Financial reporting should enable evaluation of the success rate of programs.
B) Financial reporting should enable evaluation of the service efforts, costs and accomplishments of the
reporting entity.
C) Financial reporting should reveal whether financial systems and controls are adequate.
D) Financial reporting should demonstrate accountability with regard to raising and expending money.
ANS -A) Financial reporting should enable evaluation of the success rate of programs.
The FASAB has the authority to establish accounting and financial reporting standards for:
A) State and local governments
B) Investor owned business
C) Federal government
D) Public not-for-profits ANS -C) Federal government
The FASB has the authority to establish accounting and financial reporting standards for:
A) Federal government
B) Private not-for-profits
C) Public not-for-profits
D) State and local governments ANS -B) Private not-for-profits
The GASB has the authority to establish accounting and financial reporting standards for:
A) State governments
B) Private not-for-profits
C) Federal government
D) None of the above ANS -A) State governments
In order for a fund to exist, there must be:
A) A fiscal entity; assets set aside for a specific purpose
B) A double-entry accounting entity
questions and answers.
Governmental funds include:
A) Special revenue funds
B) Internal service funds
C) Debt service funds
D) A and C ANS -D) A and C
The "Hierarchy of GAAP" is established by the:
A) Financial Accounting Standards Board.
B) Federal Accounting Standards Advisory Board
C) Governmental Accounting Standards Board
D) All of the above have established a hierarchy ANS -D) All of the above have established a hierarchy
The term "proprietary funds" applies to:
A) all funds that use accrual accounting.
B) enterprise and internal service funds only.
C) enterprise, internal service, and private-purpose trust funds.
D) none of the above answers are correct. ANS -B) enterprise and internal service funds only.
The term "fiduciary funds" applies to:
A) enterprise and internal service funds.
B) pension, investment trust and enterprise funds
C) enterprise, internal service, and private-purpose trust funds.
D) none of the above answers are correct. ANS -D) none of the above answers are correct.
The GASB sets accounting standards for all of the following except:
,A) State and local governments
B) Component units owned or controlled by governments
C) Governmentally related not-for-profit universities
D) Nongovernmental not-for-profit hospital ANS -D) Nongovernmental not-for-profit hospital
Which of the following fund types is present in every general-purpose government?
A) Permanent
B) Special revenue
C) General
D) Capital projects ANS -C) General
Which of the following is a proprietary fund?
A) Investment trust
B) Permanent
C) Special revenue
D) Internal service ANS -D) Internal service
Which of the following is not a fiduciary fund?
A) Agency
B) Permanent
C) Pension trust
D) Private-purpose trust ANS -B) Permanent
Which of the following is a governmental fund?
A) Agency
B) Enterprise
C) Special revenue
D) Internal service ANS -C) Special revenue
, Which of the following is not one of the objectives of Federal Financial Reporting, as outlined in SFFAC 1,
which was issued by the FASAB?
A) Financial reporting should enable evaluation of the success rate of programs.
B) Financial reporting should enable evaluation of the service efforts, costs and accomplishments of the
reporting entity.
C) Financial reporting should reveal whether financial systems and controls are adequate.
D) Financial reporting should demonstrate accountability with regard to raising and expending money.
ANS -A) Financial reporting should enable evaluation of the success rate of programs.
The FASAB has the authority to establish accounting and financial reporting standards for:
A) State and local governments
B) Investor owned business
C) Federal government
D) Public not-for-profits ANS -C) Federal government
The FASB has the authority to establish accounting and financial reporting standards for:
A) Federal government
B) Private not-for-profits
C) Public not-for-profits
D) State and local governments ANS -B) Private not-for-profits
The GASB has the authority to establish accounting and financial reporting standards for:
A) State governments
B) Private not-for-profits
C) Federal government
D) None of the above ANS -A) State governments
In order for a fund to exist, there must be:
A) A fiscal entity; assets set aside for a specific purpose
B) A double-entry accounting entity
