Gov Exam 1 questions well answered
graded A+
Financial assets include - correct answer ✔✔Cash, investments and receivables
True or False? Typically, G&NP organizations have more restricted resources than do business
entities. - correct answer ✔✔True
Legally adopted budgets of governmental funds are - correct answer ✔✔Fixed dollar budgets
which establish expenditure limits that are not to be exceeded
The body with primary accounting standards-setting authority for state and local governments is
the - correct answer ✔✔Government Accounting Standards Board
Describe the term "related liabilities" - correct answer ✔✔Related liabilities refer primarily to
general government liabilities that are related to the current year and are normally paid from
available expendable financial assets.
What is not classified as an expenditure? - correct answer ✔✔Depreciation & bad debt expense
The body with primary accounting standards-setting authority for colleges and universities is the
- correct answer ✔✔Government Accounting Standards Board for governmental colleges and
universities and the Financial Accounting Standards Board for all other colleges and universities.
One unique characteristic of most governmental and nonprofit organizations is that - correct
answer ✔✔There is no direct relationship between the amount of goods or services that most
resource providers receive and the amount of resources provided by each individual
, Enabling legislation requiring that resources be expended only for a specific purpose result in
which category of fund balance being present? - correct answer ✔✔Restricted fund balance
The GAAP fund balance classifications are described as reflecting a hierarchy of constraints on
resource use. From the most constrained to the least constrained, what is the order of the
hierarchy? - correct answer ✔✔Non-spendable, Restricted, Committed, Assigned, Unassigned
The fund balance category that must be zero if unassigned fund balance is a deficit is - correct
answer ✔✔Assigned fund balance
Assume that Howard County has levied its current year taxes and all revenue recognition criteria
for property taxes have been met. The amount levied was $775,000, of which 2% is considered
to be uncollectible based on historical experience. Which of the following entries would be
made in the General Fund? - correct answer ✔✔Taxes receivable- current $775,000 Allowance
for uncollectible taxes $15,500 Tax revenues $759,500
Which fund balance category is affected by having inventory and prepaid items at year end? -
correct answer ✔✔Non-spendable fund balance
What is a characteristic of a Special Revenue Fund that differentiates it from a General Fund? -
correct answer ✔✔A Special Revenue Fund is established only if a revenue source is restricted
or committed to expenditure for a specific purpose.
The GAAP based statements that are required to be presented for the General Fund are: -
correct answer ✔✔Balance Sheet and Statement of Revenues, Expenditures and Changes in
Fund Balances.
Actions of the finance director may result in which category of fund balance being reported? -
correct answer ✔✔Assigned fund balance
graded A+
Financial assets include - correct answer ✔✔Cash, investments and receivables
True or False? Typically, G&NP organizations have more restricted resources than do business
entities. - correct answer ✔✔True
Legally adopted budgets of governmental funds are - correct answer ✔✔Fixed dollar budgets
which establish expenditure limits that are not to be exceeded
The body with primary accounting standards-setting authority for state and local governments is
the - correct answer ✔✔Government Accounting Standards Board
Describe the term "related liabilities" - correct answer ✔✔Related liabilities refer primarily to
general government liabilities that are related to the current year and are normally paid from
available expendable financial assets.
What is not classified as an expenditure? - correct answer ✔✔Depreciation & bad debt expense
The body with primary accounting standards-setting authority for colleges and universities is the
- correct answer ✔✔Government Accounting Standards Board for governmental colleges and
universities and the Financial Accounting Standards Board for all other colleges and universities.
One unique characteristic of most governmental and nonprofit organizations is that - correct
answer ✔✔There is no direct relationship between the amount of goods or services that most
resource providers receive and the amount of resources provided by each individual
, Enabling legislation requiring that resources be expended only for a specific purpose result in
which category of fund balance being present? - correct answer ✔✔Restricted fund balance
The GAAP fund balance classifications are described as reflecting a hierarchy of constraints on
resource use. From the most constrained to the least constrained, what is the order of the
hierarchy? - correct answer ✔✔Non-spendable, Restricted, Committed, Assigned, Unassigned
The fund balance category that must be zero if unassigned fund balance is a deficit is - correct
answer ✔✔Assigned fund balance
Assume that Howard County has levied its current year taxes and all revenue recognition criteria
for property taxes have been met. The amount levied was $775,000, of which 2% is considered
to be uncollectible based on historical experience. Which of the following entries would be
made in the General Fund? - correct answer ✔✔Taxes receivable- current $775,000 Allowance
for uncollectible taxes $15,500 Tax revenues $759,500
Which fund balance category is affected by having inventory and prepaid items at year end? -
correct answer ✔✔Non-spendable fund balance
What is a characteristic of a Special Revenue Fund that differentiates it from a General Fund? -
correct answer ✔✔A Special Revenue Fund is established only if a revenue source is restricted
or committed to expenditure for a specific purpose.
The GAAP based statements that are required to be presented for the General Fund are: -
correct answer ✔✔Balance Sheet and Statement of Revenues, Expenditures and Changes in
Fund Balances.
Actions of the finance director may result in which category of fund balance being reported? -
correct answer ✔✔Assigned fund balance
