Governmental and NFP Accounting Exam 2
Questions and Answers 100% Pass
The Resources to service long-term debt of gov's are typically accounted
for in Debt Service Funds - ✔✔True
10 MM, 6% long term bond O/S. Interest due 1/1 and 7/1 each year. for a
9/30 FYE what amt of int. payable should be in DSF. - ✔✔$0k
Harbor city issues 6% tax-exempt bond and acquired govt securities with
7% yield. This is an example of - ✔✔arbitrage
In governmental funds, the costs of capital assets are reported as expenses
and capitalized when acquired - ✔✔True
For a Government that elects NOT to capitalize works of art, what are the
government-wide stmts-what is the entry at donation? - ✔✔Dr. Expenses
Cr. Revenues
1
Katelyn Whitman, All Rights Reserved © 2025
, For a Government that elects to capitalize works of art, what are the
government-wide stmts-what is the entry at donation? - ✔✔Dr. Asset Cr.
Revenues
The government-wide financial statements report capital assets? - ✔✔at
depreciated historical cost
Tax Anticipation Notes must be reported as current liability of the
governmental fund in which related revenues are reported - ✔✔True
In the govt-wide fin. stmts. the assets acquired under a capital lease would
be reported at - ✔✔PV of the required lease payments
Debt issued by one entity but backed by the promise of an unrelated entity
to make up any debt service deficiency is - ✔✔moral obligation debt
Bond Insurance issued by credit enhancement agencies is-- - ✔✔intended
to assure the holder of the debt will be paid, ensures the bonds receive the
high rating, is costly to the government paying for the insurance
The Revenues of an internal service fund are the expenditures and
expenses of other funds of that government - ✔✔True
2
Katelyn Whitman, All Rights Reserved © 2025
Questions and Answers 100% Pass
The Resources to service long-term debt of gov's are typically accounted
for in Debt Service Funds - ✔✔True
10 MM, 6% long term bond O/S. Interest due 1/1 and 7/1 each year. for a
9/30 FYE what amt of int. payable should be in DSF. - ✔✔$0k
Harbor city issues 6% tax-exempt bond and acquired govt securities with
7% yield. This is an example of - ✔✔arbitrage
In governmental funds, the costs of capital assets are reported as expenses
and capitalized when acquired - ✔✔True
For a Government that elects NOT to capitalize works of art, what are the
government-wide stmts-what is the entry at donation? - ✔✔Dr. Expenses
Cr. Revenues
1
Katelyn Whitman, All Rights Reserved © 2025
, For a Government that elects to capitalize works of art, what are the
government-wide stmts-what is the entry at donation? - ✔✔Dr. Asset Cr.
Revenues
The government-wide financial statements report capital assets? - ✔✔at
depreciated historical cost
Tax Anticipation Notes must be reported as current liability of the
governmental fund in which related revenues are reported - ✔✔True
In the govt-wide fin. stmts. the assets acquired under a capital lease would
be reported at - ✔✔PV of the required lease payments
Debt issued by one entity but backed by the promise of an unrelated entity
to make up any debt service deficiency is - ✔✔moral obligation debt
Bond Insurance issued by credit enhancement agencies is-- - ✔✔intended
to assure the holder of the debt will be paid, ensures the bonds receive the
high rating, is costly to the government paying for the insurance
The Revenues of an internal service fund are the expenditures and
expenses of other funds of that government - ✔✔True
2
Katelyn Whitman, All Rights Reserved © 2025
