ACC 406 EXAM 3 QUESTIONS WITH VERIFIED ANSWERS. A+ GRADE 2025/2026.

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