NFP Exam 1 Questions and Answers
100% Pass
The city transferred cash to the fund used to accumulate resources to pay
bond principal and interest. - ✔✔GF, DSF
The city received its share of a state sales tax that is legally required to be
used to finance library operations. - ✔✔SRF
The city sent property tax bills to homeowners to help pay for day-to-day
operating costs - ✔✔GF
The city paid for five fire engines, using resources accumulated in a fund to
pay for capital assets - ✔✔CPF
The city received a grant from the city to build an addition to the city hall. -
✔✔CPF
1
Katelyn Whitman, All Rights Reserved © 2025
,The city received the proceeds of general obligation bond to finance the
construction of a new police station. - ✔✔CPF
The mayor was paid his monthly salary. - ✔✔GF
Expenditures for the operations of the Police Department were recorded. -
✔✔GF
Parks admissions fees, dedicated for use in day-to-day maintenance of the
city park system, were collected. - ✔✔SRF
The city paid a contractor who had completed a report on the potential for
improving police deployment as a way to reduce the crime rate. - ✔✔GF
The city workers were paid their weekly salaries. - ✔✔GF
The city retired some of its outstanding bonds, using money accumulated
for that purpose. - ✔✔DSF
A federal grant was received to help pay for the cost of constructing the
new city hall. - ✔✔CPF
2
Katelyn Whitman, All Rights Reserved © 2025
,The city received a donation from a taxpayer with the stipulation it be
invested and kept in perpetuity, so that the income from the investments
could be used to buy library books. - ✔✔PF
The city received income from the investments made in the previous
activity. - ✔✔SRF
Bonds were issued by the fund used to account for providing water to the
residents of a municipality. - ✔✔EF
The fund that finances the city's basic day-to-day operating activities lent
$50,000 to the fund that will provide city agencies with supplies on a user
charge basis. - ✔✔GF, ISF
The city-operated utility that provides electricity to the residents of a
municipality billed the city for electricity provided to city agencies. -
✔✔EF, GF
The city charter requires all hotel taxes to be accounted for in a separate
fund dedicated to maintaining the downtown business district. Hotel tax
collections for the period were $500,000. - ✔✔SRF
3
Katelyn Whitman, All Rights Reserved © 2025
, Salaries were paid to the city's police officers and firefighters. - ✔✔GF
The state lottery, which operates like a business entity, sent a check for its
net revenues (after paying lottery prizes) to the state. The state will add
these revenues to general state revenues as part of the state's program for
financing elementary and secondary education. - ✔✔EF, GF
Interest and principal on the city's general obligation debt were paid, using
resources accumulated specifically for that purpose. - ✔✔DSF
The fund that finances the city's day-to-day operating activities transferred
cash to the fund that pays principal and interest on outstanding debt. -
✔✔GF, DSF
The city sold general obligation bonds to buy land as part of a city hall
expansion program. - ✔✔CPF
The city's central motor pool billed each city department for use of vehicles.
- ✔✔ISF, GF
The state established a highway beautification program, to be financed by
dedicating a new motor vehicle license fee to that purpose. - ✔✔SRF
4
Katelyn Whitman, All Rights Reserved © 2025
100% Pass
The city transferred cash to the fund used to accumulate resources to pay
bond principal and interest. - ✔✔GF, DSF
The city received its share of a state sales tax that is legally required to be
used to finance library operations. - ✔✔SRF
The city sent property tax bills to homeowners to help pay for day-to-day
operating costs - ✔✔GF
The city paid for five fire engines, using resources accumulated in a fund to
pay for capital assets - ✔✔CPF
The city received a grant from the city to build an addition to the city hall. -
✔✔CPF
1
Katelyn Whitman, All Rights Reserved © 2025
,The city received the proceeds of general obligation bond to finance the
construction of a new police station. - ✔✔CPF
The mayor was paid his monthly salary. - ✔✔GF
Expenditures for the operations of the Police Department were recorded. -
✔✔GF
Parks admissions fees, dedicated for use in day-to-day maintenance of the
city park system, were collected. - ✔✔SRF
The city paid a contractor who had completed a report on the potential for
improving police deployment as a way to reduce the crime rate. - ✔✔GF
The city workers were paid their weekly salaries. - ✔✔GF
The city retired some of its outstanding bonds, using money accumulated
for that purpose. - ✔✔DSF
A federal grant was received to help pay for the cost of constructing the
new city hall. - ✔✔CPF
2
Katelyn Whitman, All Rights Reserved © 2025
,The city received a donation from a taxpayer with the stipulation it be
invested and kept in perpetuity, so that the income from the investments
could be used to buy library books. - ✔✔PF
The city received income from the investments made in the previous
activity. - ✔✔SRF
Bonds were issued by the fund used to account for providing water to the
residents of a municipality. - ✔✔EF
The fund that finances the city's basic day-to-day operating activities lent
$50,000 to the fund that will provide city agencies with supplies on a user
charge basis. - ✔✔GF, ISF
The city-operated utility that provides electricity to the residents of a
municipality billed the city for electricity provided to city agencies. -
✔✔EF, GF
The city charter requires all hotel taxes to be accounted for in a separate
fund dedicated to maintaining the downtown business district. Hotel tax
collections for the period were $500,000. - ✔✔SRF
3
Katelyn Whitman, All Rights Reserved © 2025
, Salaries were paid to the city's police officers and firefighters. - ✔✔GF
The state lottery, which operates like a business entity, sent a check for its
net revenues (after paying lottery prizes) to the state. The state will add
these revenues to general state revenues as part of the state's program for
financing elementary and secondary education. - ✔✔EF, GF
Interest and principal on the city's general obligation debt were paid, using
resources accumulated specifically for that purpose. - ✔✔DSF
The fund that finances the city's day-to-day operating activities transferred
cash to the fund that pays principal and interest on outstanding debt. -
✔✔GF, DSF
The city sold general obligation bonds to buy land as part of a city hall
expansion program. - ✔✔CPF
The city's central motor pool billed each city department for use of vehicles.
- ✔✔ISF, GF
The state established a highway beautification program, to be financed by
dedicating a new motor vehicle license fee to that purpose. - ✔✔SRF
4
Katelyn Whitman, All Rights Reserved © 2025
