ACC 406 EXAM 3 QUESTIONS WITH
VERIFIED ANSWERS. A+ GRADE
2025/2026.
Total Revenue - ANS Contributions (support) + Investment (revenues) + net assets released
from restriction
fund financial statements - ANS -Focus on budget accountability (through reporting sources,
uses, and balances of the current financial resources that have been entrusted to governmental
officials
- uses the modified accrual basis
Government-wide financial statements - ANS Provide information about the government on
an accrual basis
Steps of Government-Wide Financial Statements - ANS -Record Budget Entry
- Record Transactions
- Prepare Fund Financial Statements
- Record Closing Entries and Reverse Budget Entry
- Add LT Assets / Liabilities, Convert to accrual basis
- Prepare government-wide financial statements
Interfund Transactions - ANS Loans, Service provided and used, Transfers, Reimbursements
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,Loans JE - ANS Fund Paying Cash (X)
DR: Due from Fund Y
CR: Cash
Fund Receiving Cash (Y)
DR: Cash
CR: Due to Fund X
Services JE - ANS Fund Paying Cash (X)
DR: Expenditures
CR: Cash
Fund Receiving Cash (Y)
DR: Cash
CR: Revenue
Transfers JE - ANS Fund Paying Cash (X):
DR: Expenditures
CR: Cash
Fund Receiving Cash (Y)
DR: Cash
CR: Revenue
Reimbursements JE - ANS Fund Paying Cash (X)
DR: Expenditures
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, CR: Cash
Fund Receiving Cash (Y)
DR: Cash
CR: Expenditures
Governmental Funds - ANS Funds that segregate and track customary government activities
funded by taxes or federal/state revenue sharing
- general fund, special revenue funds, captial project funds, debt service funds, permanent
funds
General Fund - ANS all resources except those in another fund
- the government's main operating fund
- must always be reported in a separate column even if it does not meet the conditions above
Special Revenue Funds - ANS federal / private grants
Capital project funds - ANS construction / renovation of buildings and infrastructure
Debt service funds - ANS bond sinking fund to pay principal at maturity
Permanent funds - ANS gifts and endowments
Propriety funds - ANS - funds that segregate and track business-like activities (UW System)
- Governments typically set fees to cover costs but not to generate significant excess cash flow
Fiduciary funds - ANS funds that segregate and track resources held in trust for others
(employee retirement plans)
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
VERIFIED ANSWERS. A+ GRADE
2025/2026.
Total Revenue - ANS Contributions (support) + Investment (revenues) + net assets released
from restriction
fund financial statements - ANS -Focus on budget accountability (through reporting sources,
uses, and balances of the current financial resources that have been entrusted to governmental
officials
- uses the modified accrual basis
Government-wide financial statements - ANS Provide information about the government on
an accrual basis
Steps of Government-Wide Financial Statements - ANS -Record Budget Entry
- Record Transactions
- Prepare Fund Financial Statements
- Record Closing Entries and Reverse Budget Entry
- Add LT Assets / Liabilities, Convert to accrual basis
- Prepare government-wide financial statements
Interfund Transactions - ANS Loans, Service provided and used, Transfers, Reimbursements
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,Loans JE - ANS Fund Paying Cash (X)
DR: Due from Fund Y
CR: Cash
Fund Receiving Cash (Y)
DR: Cash
CR: Due to Fund X
Services JE - ANS Fund Paying Cash (X)
DR: Expenditures
CR: Cash
Fund Receiving Cash (Y)
DR: Cash
CR: Revenue
Transfers JE - ANS Fund Paying Cash (X):
DR: Expenditures
CR: Cash
Fund Receiving Cash (Y)
DR: Cash
CR: Revenue
Reimbursements JE - ANS Fund Paying Cash (X)
DR: Expenditures
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, CR: Cash
Fund Receiving Cash (Y)
DR: Cash
CR: Expenditures
Governmental Funds - ANS Funds that segregate and track customary government activities
funded by taxes or federal/state revenue sharing
- general fund, special revenue funds, captial project funds, debt service funds, permanent
funds
General Fund - ANS all resources except those in another fund
- the government's main operating fund
- must always be reported in a separate column even if it does not meet the conditions above
Special Revenue Funds - ANS federal / private grants
Capital project funds - ANS construction / renovation of buildings and infrastructure
Debt service funds - ANS bond sinking fund to pay principal at maturity
Permanent funds - ANS gifts and endowments
Propriety funds - ANS - funds that segregate and track business-like activities (UW System)
- Governments typically set fees to cover costs but not to generate significant excess cash flow
Fiduciary funds - ANS funds that segregate and track resources held in trust for others
(employee retirement plans)
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
