NFP - Test 2 - Ch 7 UPDATED ACTUAL
Exam Questions and CORRECT Answers
Which of the following would be least likely to be classified as city's general capital assets?
a. Roads & Bridges
b. Electric Utility Lines
c. Computers used by the police department
d. Computers used by the department that collects the city's sales tax, which is dedicated to debt
service on general obligation bonds - CORRECT ANSWER - b. Electric Utility Lines
A city should not report on its general fund balance sheet an office building constructed over 100
years ago because - CORRECT ANSWER - The measurement focus of the general fund is
on current financial resources and the building is not a current financial resource.
Which of the following costs should not be capitalized and reported on a city's government-wide
statement of net assets?
a. Payments to a city artist to design a new city logo
b. Computer software that the city purchased from outsiders?
c. Paintings acquired for display in the city's art museum
d. Legal fees incurred in acquiring land to be used for a city park. - CORRECT
ANSWER - a. Payments to a city artist to design a new city logo
Which of the following collectibles need not be capitalized and reported on a city's government
wide statement of net assets?
Exam Questions and CORRECT Answers
Which of the following would be least likely to be classified as city's general capital assets?
a. Roads & Bridges
b. Electric Utility Lines
c. Computers used by the police department
d. Computers used by the department that collects the city's sales tax, which is dedicated to debt
service on general obligation bonds - CORRECT ANSWER - b. Electric Utility Lines
A city should not report on its general fund balance sheet an office building constructed over 100
years ago because - CORRECT ANSWER - The measurement focus of the general fund is
on current financial resources and the building is not a current financial resource.
Which of the following costs should not be capitalized and reported on a city's government-wide
statement of net assets?
a. Payments to a city artist to design a new city logo
b. Computer software that the city purchased from outsiders?
c. Paintings acquired for display in the city's art museum
d. Legal fees incurred in acquiring land to be used for a city park. - CORRECT
ANSWER - a. Payments to a city artist to design a new city logo
Which of the following collectibles need not be capitalized and reported on a city's government
wide statement of net assets?
