G&NFP Exam 2 Review UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Government financial reports should be useful in assessing a government's accountability. Three
objectives of government financial reporting identify how financial reporting can be useful in
assessing a government's accountability. Which of the following is not related to one of the
objectives?
a. Providing information on operating results for the current period.
b. Providing information on meeting current year service performance goals.
c. Providing information related to the provision of - CORRECT ANSWER -b
Which of the following amounts that are identified at the end of the fiscal year would be
classified as an assigned fund balance?
a. Resources the city manager has set aside for a major street repair.
b. A federal grant that is to be used for playground equipment.
c. Significant amounts of inventory.
d. Endowment resources that the city must maintain in perpetuity. - CORRECT
ANSWER -a
How does the GASB recommend governments report budgetary information?
a. As a required financial statement.
b. As a note disclosure.
c. As required supplementary information.
d. As other supplementary information. - CORRECT ANSWER -c
,The measurement focus and basis of accounting that should be used for the government-wide
financial statements are
a. Current financial resources - Modified accrual
b. Current financial resources - Accrual
c. Economic resources - Modified accrual
d. Economic resources - Accrual - CORRECT ANSWER -d
Which of the following statements is true regarding the basic financial statements of a state or
local government?
a. Separate columns should be provided in the government-wide financial statements for
governmental activities and business-type activities.
b. Governmental fund and proprietary fund financial statements should provide a separate
column for each major fund.
c. Aggregate information about all nonmajor governmental funds should be reported in a single
column of the governmental fund - CORRECT ANSWER - all
Under the modified accrual basis of accounting:
a. Revenues are recognized at the time an exchange transaction occurs.
b. Expenditures are recognized as the cost of an asset expires or is used up in providing
government services.
c. Revenues are recognized when current financial resources become measurable and available to
pay current-period obligations.
d. Expenses are recognized when an obligation occurs for costs incurred in providing services. -
CORRECT ANSWER -c
Choose the type of fund that would most likely be reported in the examples given:
Costs of a central printing function.
, a. custodial
b. capital projects
c. debt service
d. enterprise
e. general
f. internal service
g. investment trust
h. pension (and other employee benefit) trust
i. permanent
j. private-purpose trust
k. special revenue - CORRECT ANSWER -f
Choose the type of fund that would most likely be reported in the examples given:
Construction of public buildings.
a. custodial
b. capital projects
c. debt service
d. enterprise
e. general
f. internal service
g. investment trust
h. pension (and other employee benefit) trust
i. permanent
j. private-purpose trust
k. special revenue - CORRECT ANSWER -b
ACTUAL Exam Questions and CORRECT
Answers
Government financial reports should be useful in assessing a government's accountability. Three
objectives of government financial reporting identify how financial reporting can be useful in
assessing a government's accountability. Which of the following is not related to one of the
objectives?
a. Providing information on operating results for the current period.
b. Providing information on meeting current year service performance goals.
c. Providing information related to the provision of - CORRECT ANSWER -b
Which of the following amounts that are identified at the end of the fiscal year would be
classified as an assigned fund balance?
a. Resources the city manager has set aside for a major street repair.
b. A federal grant that is to be used for playground equipment.
c. Significant amounts of inventory.
d. Endowment resources that the city must maintain in perpetuity. - CORRECT
ANSWER -a
How does the GASB recommend governments report budgetary information?
a. As a required financial statement.
b. As a note disclosure.
c. As required supplementary information.
d. As other supplementary information. - CORRECT ANSWER -c
,The measurement focus and basis of accounting that should be used for the government-wide
financial statements are
a. Current financial resources - Modified accrual
b. Current financial resources - Accrual
c. Economic resources - Modified accrual
d. Economic resources - Accrual - CORRECT ANSWER -d
Which of the following statements is true regarding the basic financial statements of a state or
local government?
a. Separate columns should be provided in the government-wide financial statements for
governmental activities and business-type activities.
b. Governmental fund and proprietary fund financial statements should provide a separate
column for each major fund.
c. Aggregate information about all nonmajor governmental funds should be reported in a single
column of the governmental fund - CORRECT ANSWER - all
Under the modified accrual basis of accounting:
a. Revenues are recognized at the time an exchange transaction occurs.
b. Expenditures are recognized as the cost of an asset expires or is used up in providing
government services.
c. Revenues are recognized when current financial resources become measurable and available to
pay current-period obligations.
d. Expenses are recognized when an obligation occurs for costs incurred in providing services. -
CORRECT ANSWER -c
Choose the type of fund that would most likely be reported in the examples given:
Costs of a central printing function.
, a. custodial
b. capital projects
c. debt service
d. enterprise
e. general
f. internal service
g. investment trust
h. pension (and other employee benefit) trust
i. permanent
j. private-purpose trust
k. special revenue - CORRECT ANSWER -f
Choose the type of fund that would most likely be reported in the examples given:
Construction of public buildings.
a. custodial
b. capital projects
c. debt service
d. enterprise
e. general
f. internal service
g. investment trust
h. pension (and other employee benefit) trust
i. permanent
j. private-purpose trust
k. special revenue - CORRECT ANSWER -b
