Gov & NFP Exam 4 UPDATED ACTUAL Exam Questions and CORRECT Answers

Gov & NFP Exam 4 UPDATED ACTUAL
Exam Questions and CORRECT Answers
In government-wide financial statements, for which activities is depreciation reported?
a. Only for governmental activities
b. Only for business-type activities
c. For both governmental and business-type activities

d. For neither governmental nor business-type activities - CORRECT ANSWER - For both
governmental and business-type activities


In government-wide financial statements, for which activities are the economic resources
measurement focus and accrual basis of accounting used?
a. Only for governmental activities
b. Only for business-type activities
c. For both governmental and business-type activities

d. For neither governmental nor business-type activities - CORRECT ANSWER - For both
governmental and business-type activities


In which set of financial statements are fiduciary-type funds reported?
a. Only in the fund financial statements
b. Only in the government-wide financial statements
c. In both fund and government-wide financial statements

d. In neither fund nor government-wide financial statements - CORRECT ANSWER -
Only in the fund financial statements


If the General Fund makes a transfer to the Debt Service Fund, how should the transfer be
reported in the fund and government-wide financial statements?
a. The transfers in and out should be reported in both the fund statement of revenues,
expenditures, and changes in fund balance and the government-wide statement of activities.

,b. The transfers in and out should be reported in neither the fund statement of revenues,
expenditures, and changes in fund balance nor the government-wide statement of activities.
c. The transfers in and out should be reported in the fund statement of revenues, expenditures,
and changes in fund balance but not in the government-wide statement of activities.
d. The transfers in and out should be reported in the government-wide statement of activities but
not in the fund statement of revenues, expenditures, and changes in fund balance. - CORRECT
ANSWER - The transfers in and out should be reported in the fund statement of revenues,
expenditures, and changes in fund balance but not in the government-wide statement of
activities.


A village issues $3,000,000 of general obligation bonds to build a new firehouse. How should the
debt be reported?
a. As a liability in the government-wide statement of net position
b. As a liability in the fund balance sheet
c. As proceeds of debt in the government-wide statement of activities
d. As a liability in both the fund balance sheet and the government-wide statement of net position
- CORRECT ANSWER - As a liability in the government-wide statement of net position


A village levies property taxes in the amount of $4,290,000 for the fiscal year ended June 30,
2019. It collects $4,200,000 during the year. Regarding the remaining $90,000 of delinquent
receivables, it expects to collect $60,000 in July and August of 2019 and another $20,000 after
August 2019 but before March 2020. It expects to write off $10,000 as uncollectible. How much
should the village recognize as property tax revenue in its government-wide statement of
activities for the fiscal year ended June 30, 2019?
a. $4,290,000
b. $4,280,000
c. $4,260,000

d. $4,200,000 - CORRECT ANSWER - $4,280,000


A city issues $500,000 of 10-year general obligation bonds on April 1, 2019. It is required to
make a principal payment of $50,000 on April 1 of each year, starting with April 1, 2020, with
interest of 4 percent per annum paid on the unpaid principal. How much interest expenditure and
expense should the city recognize in its governmental fund and government-wide operating
statements for the calendar year ending December 31, 2019?

, Governmental Fund Operating Statement Government-Wide Operating Statement
A$15,000 $15,000
B00
C 0 15,0000

D 0 15,000 - CORRECT ANSWER -D
Governmental Fund Operating Statement: 0
Government-Wide Operating Statement: 15,000


Significant differences exist between fund financial statements and government-wide financial
statements. Which of the following is not one of these differences?
a. Certain fund financial statements may be prepared using the current financial resources
measurement focus, but government-wide financial statements are prepared using the economic
resources measurement focus.
b. Fund financial statements focus on reporting major governmental and enterprise funds, but
government-wide financial statements focus on reporting the government as a whole.
c. Fund financial statements do not include a statement of cash flows, but a statement of cash
flows is required for the government-wide financial statements.
d. Fiduciary funds are included in fund financial statements, but not included in governmentwide
financial statements.
e. Discretely presented component units are reported in government-wide financial statements,
but not - CORRECT ANSWER - Fund financial statements do not include a statement of
cash flows, but a statement of cash flows is required for the government-wide financial
statements.


Which of the following would not be reported as part of net position in the government-wide
statement of net position?
a. Restricted net position
b. Committed net position
c. Unrestricted net position
d. Net investment in capital assets

e. All of the above are a part of government-wide net position. - CORRECT ANSWER -
Committed net position