©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
NFP-Test Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
You are trying to decide if an entity you are reviewing is a government or a not-for-profit.
Which of the following would indicate it is a government rather than a not-for-profit entity? -
Answer✔A primary source of revenues is taxes.
When the budget of a government is adopted and Estimated Revenues exceed Appropriations,
the excess is: - Answer✔Credited to Budgetary Fund Balance.
One characteristic that distinguishes other financing sources from revenues is that other
financing sources: - Answer✔Arise from debt issuances or interfund transfers in.
Which of the following depict the typical order of steps in the acquisition of goods and services
by an activity accounted for by the General Fund? - Answer✔Appropriation, encumbrance,
expenditure, disbursement.
When supplies ordered for use in an activity accounted for in the General Fund are received at
an actual price that is more than the estimated price on the purchase order, the Encumbrance
account is: - Answer✔Credited for the estimated price on the purchase order.
Which of the following transactions is classified as an exchange transaction? - Answer✔Fees
charged by a municipal airport.
1|P a g e
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
Which of the following is true regarding other financing sources and other financing uses? -
Answer✔Both must be reported separately from revenues and expenditures in the statement
of revenues, expenditures, and changes in fund balances.
The County Commission of Seminole County adopted its General Fund budget for the year
ending June 30, comprising estimated revenues of $13,200,000 and appropriations of
$12,900,000. Seminole County utilizes the budgetary accounts required by GASB standards. The
journal entry to record budgeted appropriations will include: - Answer✔A credit to
Appropriations, $12,900,000.
Which of the following funds would be most appropriate when accounting for an activity that
provides goods or services to the public for a fee that is intended to make the activity self-
supporting? - Answer✔Enterprise fund.
Use the following information to determine whether the Development Special Revenue and the
Debt Service Funds should be reported as major funds based on asset amounts provided.
Development Special Revenue Fund Assets $740,000 Debt Service Fund Assets $150,000 Total
Governmental Fund Assets $7,500,000 Total Governmental Fund and Enterprise Fund Assets
$8,750,000 - Answer✔Neither the Development Special Revenue Fund nor the Debt Service
Fund should be reported as major.
Which of the following will increase the fund balance of a government at the end of the fiscal
year? - Answer✔The sum of revenues and other financing sources is more than the sum of
expenditures and other financing uses.
Which of the following should be included in the financial section of a comprehensive annual
financial report? - Answer✔The basic financial statements, including notes thereto.
The activities of a water utility department, which offers its services to the general public on a
user charge basis, should be accounted for in - Answer✔An enterprise fund.
2|P a g e
NFP-Test Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
You are trying to decide if an entity you are reviewing is a government or a not-for-profit.
Which of the following would indicate it is a government rather than a not-for-profit entity? -
Answer✔A primary source of revenues is taxes.
When the budget of a government is adopted and Estimated Revenues exceed Appropriations,
the excess is: - Answer✔Credited to Budgetary Fund Balance.
One characteristic that distinguishes other financing sources from revenues is that other
financing sources: - Answer✔Arise from debt issuances or interfund transfers in.
Which of the following depict the typical order of steps in the acquisition of goods and services
by an activity accounted for by the General Fund? - Answer✔Appropriation, encumbrance,
expenditure, disbursement.
When supplies ordered for use in an activity accounted for in the General Fund are received at
an actual price that is more than the estimated price on the purchase order, the Encumbrance
account is: - Answer✔Credited for the estimated price on the purchase order.
Which of the following transactions is classified as an exchange transaction? - Answer✔Fees
charged by a municipal airport.
1|P a g e
, ©BRIGHTSTARS 2025 ALL RIGHTS RESERVED 11:22 AM A+
Which of the following is true regarding other financing sources and other financing uses? -
Answer✔Both must be reported separately from revenues and expenditures in the statement
of revenues, expenditures, and changes in fund balances.
The County Commission of Seminole County adopted its General Fund budget for the year
ending June 30, comprising estimated revenues of $13,200,000 and appropriations of
$12,900,000. Seminole County utilizes the budgetary accounts required by GASB standards. The
journal entry to record budgeted appropriations will include: - Answer✔A credit to
Appropriations, $12,900,000.
Which of the following funds would be most appropriate when accounting for an activity that
provides goods or services to the public for a fee that is intended to make the activity self-
supporting? - Answer✔Enterprise fund.
Use the following information to determine whether the Development Special Revenue and the
Debt Service Funds should be reported as major funds based on asset amounts provided.
Development Special Revenue Fund Assets $740,000 Debt Service Fund Assets $150,000 Total
Governmental Fund Assets $7,500,000 Total Governmental Fund and Enterprise Fund Assets
$8,750,000 - Answer✔Neither the Development Special Revenue Fund nor the Debt Service
Fund should be reported as major.
Which of the following will increase the fund balance of a government at the end of the fiscal
year? - Answer✔The sum of revenues and other financing sources is more than the sum of
expenditures and other financing uses.
Which of the following should be included in the financial section of a comprehensive annual
financial report? - Answer✔The basic financial statements, including notes thereto.
The activities of a water utility department, which offers its services to the general public on a
user charge basis, should be accounted for in - Answer✔An enterprise fund.
2|P a g e
