NFP Exam 4 Chapter 8 UPDATED ACTUAL
Exam Questions and CORRECT Answers
The Belmont County GF is given 1% of all collections for governments other than the County as
reimbursement for the cot of operating the Tax Custodial Fund. The distribution of the taxes
collected includes $100,000 to Lake School District; its tax rate is broken down as follows:
General $4.40, Capital projects $0.25 and Debt service $0.35. The fee paid is recorded as an
expenditure. The entry in the Lake School District GF journal will include a credit to Taxes
Receivable-Current for... - CORRECT ANSWER - 1. current tax rate
(4.40+0.25+0.35) = 5.00
2. credit to taxes receivable
(100,000 * (4.40/5)) = 88,000
Total real property taxes certified for collection by collector's office during the current year total
$5,000,000 and 5% is considered uncollectible. The entry recorded by the Tax Custodial Fund
includes a: - CORRECT ANSWER - credit to Due to other funds and governments -
5,000,000
debit to taxes receivable for other funds and governments-current - 5,000,000
If a public purpose trust resources are expendable for the trust purpose, the trust should be
accounted for as a -- fund - CORRECT ANSWER - special revenue
Trusts that benefit the government's own programs or citizens at large are accounted for as.. -
CORRECT ANSWER - 1. special revenue funds
2. permanent funds
Dodson County sponsors a defined benefit pension plan. If, during the current year, member
contributions in the amount of $250,000 and employer contributions in the amount of $250,000
were received in cash, the entry made by the Dodson County employee retirement plan would
include credits to - CORRECT ANSWER - 1. additions - member contributions
, 2. additions - employer contributions
County GF is given 1% of all collections for governments other than the county for
reimbursement for the cost of operating the tax custodial fund. The taxes collected are as
follows: county 400,000 state 100,000 and other governments 2,500,000. The collection fee
charged by the county equals - CORRECT ANSWER - (100,000*0.01) + (2,500,000*0.01)
= 1,000 + 25,000 = 26,000
Total pension liability - CORRECT ANSWER - The portion of the present value of
projected benefit payments to be provided through a pension plan that is attributed to past
periods of employee service.
Service cost - CORRECT ANSWER - The portion of the actuarial present value of
projected pension benefit payments that is attributed to the current year.
Net pension liability - CORRECT ANSWER - The difference between the total pension
liability and plan fiduciary net position.
If criteria for administrative or direct financial involvement are met, the primary recipient
government -- in a governmental fund, private-purpose trust fund, or proprietary fund -
CORRECT ANSWER - 1. must recognize a revenue for the receipt
2. must recognize an expenditure or expense for the transfer
Fiduciary activities are reported - CORRECT ANSWER - only in the fiduciary fund
financial statements
the sponsor and employer are one and the same under a -- defined benefit plan - CORRECT
ANSWER - single-employer
Parcels of property located in a township outside the city limits are taxes at the rate of $6.20 per
$100 of assessed valuation while those inside the city limits are taxes at the rate of $9.54 per
Exam Questions and CORRECT Answers
The Belmont County GF is given 1% of all collections for governments other than the County as
reimbursement for the cot of operating the Tax Custodial Fund. The distribution of the taxes
collected includes $100,000 to Lake School District; its tax rate is broken down as follows:
General $4.40, Capital projects $0.25 and Debt service $0.35. The fee paid is recorded as an
expenditure. The entry in the Lake School District GF journal will include a credit to Taxes
Receivable-Current for... - CORRECT ANSWER - 1. current tax rate
(4.40+0.25+0.35) = 5.00
2. credit to taxes receivable
(100,000 * (4.40/5)) = 88,000
Total real property taxes certified for collection by collector's office during the current year total
$5,000,000 and 5% is considered uncollectible. The entry recorded by the Tax Custodial Fund
includes a: - CORRECT ANSWER - credit to Due to other funds and governments -
5,000,000
debit to taxes receivable for other funds and governments-current - 5,000,000
If a public purpose trust resources are expendable for the trust purpose, the trust should be
accounted for as a -- fund - CORRECT ANSWER - special revenue
Trusts that benefit the government's own programs or citizens at large are accounted for as.. -
CORRECT ANSWER - 1. special revenue funds
2. permanent funds
Dodson County sponsors a defined benefit pension plan. If, during the current year, member
contributions in the amount of $250,000 and employer contributions in the amount of $250,000
were received in cash, the entry made by the Dodson County employee retirement plan would
include credits to - CORRECT ANSWER - 1. additions - member contributions
, 2. additions - employer contributions
County GF is given 1% of all collections for governments other than the county for
reimbursement for the cost of operating the tax custodial fund. The taxes collected are as
follows: county 400,000 state 100,000 and other governments 2,500,000. The collection fee
charged by the county equals - CORRECT ANSWER - (100,000*0.01) + (2,500,000*0.01)
= 1,000 + 25,000 = 26,000
Total pension liability - CORRECT ANSWER - The portion of the present value of
projected benefit payments to be provided through a pension plan that is attributed to past
periods of employee service.
Service cost - CORRECT ANSWER - The portion of the actuarial present value of
projected pension benefit payments that is attributed to the current year.
Net pension liability - CORRECT ANSWER - The difference between the total pension
liability and plan fiduciary net position.
If criteria for administrative or direct financial involvement are met, the primary recipient
government -- in a governmental fund, private-purpose trust fund, or proprietary fund -
CORRECT ANSWER - 1. must recognize a revenue for the receipt
2. must recognize an expenditure or expense for the transfer
Fiduciary activities are reported - CORRECT ANSWER - only in the fiduciary fund
financial statements
the sponsor and employer are one and the same under a -- defined benefit plan - CORRECT
ANSWER - single-employer
Parcels of property located in a township outside the city limits are taxes at the rate of $6.20 per
$100 of assessed valuation while those inside the city limits are taxes at the rate of $9.54 per
