NFP HW MC Exam 1 UPDATED ACTUAL
Exam Questions and CORRECT Answers
Oak Township issued the following bonds during the year:
- Bonds to acquire equipment for a vehicle repair service that is accounted for in an internal
service fund $3,000,000
-Bonds to construct a new city hall $8,000,000
-Bond to improve its water utility, which is accounted for in an enterprise fond $9,000,000
The amount of debt to be reported in the general fund is
a. $0
b. $3,000,000
c. $8,000,000
d. $20,000,000 - CORRECT ANSWER -A
Oak Township should report depreciation in which of the following funds:
a. General fund
b. Special revenue fund
c. Internal service fund
d. Capital projects fund - CORRECT ANSWER -C
The city of Alpine incurred the following costs during the year in its property tax collection
department:
Purchase of computer equipment $ 10,000
Salaries and wages $400,000
Purchase of electricity from the city-owned electricity utility $ 40,000
Purchase of supplies, all of which were used during the year $ 10,000
, As a consequence of these transactions, the amount the Alpine should report as expenditures in
its general fund is
a. $400,000
b. $410,000
c. $450,000
d. $460,000 - CORRECT ANSWER -D
Grove City received the following resources during the year:
Property taxes $50,000,000
federal grant to acquire police cars $ 400,000
Hotel taxes, which must be used to promote tourism $3,000,000
Proceeds of bonds issued to improve city's electric utility $12,000,000
The amount that the city should most likely report as revenues in its special revenue funds is
a. $400,000
b. $3,000,000
c. $3,400,000
d. $15,400,000
e. $65,400,000 - CORRECT ANSWER -C
A city issues $20 million of general obligation bonds to improve its streets and roads. In
accordance with the bond covenants it committed $1 million to help ensure that it is able to meet
its first payment of principal and $100,000 for its first payment of interest. The amount of
liability that the city should report in its debt service fund is
a. $0
b. $18.9 million
c. $19 million
d. $20 million - CORRECT ANSWER -A
Exam Questions and CORRECT Answers
Oak Township issued the following bonds during the year:
- Bonds to acquire equipment for a vehicle repair service that is accounted for in an internal
service fund $3,000,000
-Bonds to construct a new city hall $8,000,000
-Bond to improve its water utility, which is accounted for in an enterprise fond $9,000,000
The amount of debt to be reported in the general fund is
a. $0
b. $3,000,000
c. $8,000,000
d. $20,000,000 - CORRECT ANSWER -A
Oak Township should report depreciation in which of the following funds:
a. General fund
b. Special revenue fund
c. Internal service fund
d. Capital projects fund - CORRECT ANSWER -C
The city of Alpine incurred the following costs during the year in its property tax collection
department:
Purchase of computer equipment $ 10,000
Salaries and wages $400,000
Purchase of electricity from the city-owned electricity utility $ 40,000
Purchase of supplies, all of which were used during the year $ 10,000
, As a consequence of these transactions, the amount the Alpine should report as expenditures in
its general fund is
a. $400,000
b. $410,000
c. $450,000
d. $460,000 - CORRECT ANSWER -D
Grove City received the following resources during the year:
Property taxes $50,000,000
federal grant to acquire police cars $ 400,000
Hotel taxes, which must be used to promote tourism $3,000,000
Proceeds of bonds issued to improve city's electric utility $12,000,000
The amount that the city should most likely report as revenues in its special revenue funds is
a. $400,000
b. $3,000,000
c. $3,400,000
d. $15,400,000
e. $65,400,000 - CORRECT ANSWER -C
A city issues $20 million of general obligation bonds to improve its streets and roads. In
accordance with the bond covenants it committed $1 million to help ensure that it is able to meet
its first payment of principal and $100,000 for its first payment of interest. The amount of
liability that the city should report in its debt service fund is
a. $0
b. $18.9 million
c. $19 million
d. $20 million - CORRECT ANSWER -A
