ACC 435 UPDATED SCRIPT 2026 PRACTICE
SOLUTIONS GRADED A+
● Proprietary funds are funds used to account for a government's
ongoing activities that are similar to those operated by for-profit
organizations. Answer: True
● The projected benefit approach is used to determine the amount of
future benefits earned by employees when benefits are nonpay related.
Answer: False
● The pension benefits would be reported as a Liability if the Fair Value
of the Pension Fund was greater than the Projected Benefit Obligation.
Answer: False
● The projected benefit obligation is a present value measure of the
future benefits expected to be paid to employees based on their
employment to date, but also taking into consideration, if applicable,
expected increases in wages that would affect their retirement benefits.
Answer: True
● Governmental funds are. Answer: Funds used to account for the
activities of a government that are carried out primarily to provide
services to citizens.
, ● Which group of financial statements is prepared using the "modified
accrual accounting" approach. Answer: Governmental fund financial
statements.
● Which of the following funds is most likely created with an endowed
gift. Answer: Permanent Fund
● Revenue from property taxes should be recorded in the General Fund.
Answer: In the period for which the resulting resources are required or
permitted to be used.
● Which of the following statements characterizes defined contribution
plans. Answer: The employer's obligation is satisfied by making the
appropriate amount of periodic contribution
● FASB Statement No. 158 requires that Unrecognized Prior Service
cost be amortized between which of the following journal entries.
Answer: Debit to Net Periodic Pension Cost and Credit to Other
Comprehensive Income
● Which of the following is not a component of net periodic pension
cost. Answer: Benefits paid to retirees
● FASB Statement No. 87 states that prior service cost should be.
Answer: amortized over the expected service period
SOLUTIONS GRADED A+
● Proprietary funds are funds used to account for a government's
ongoing activities that are similar to those operated by for-profit
organizations. Answer: True
● The projected benefit approach is used to determine the amount of
future benefits earned by employees when benefits are nonpay related.
Answer: False
● The pension benefits would be reported as a Liability if the Fair Value
of the Pension Fund was greater than the Projected Benefit Obligation.
Answer: False
● The projected benefit obligation is a present value measure of the
future benefits expected to be paid to employees based on their
employment to date, but also taking into consideration, if applicable,
expected increases in wages that would affect their retirement benefits.
Answer: True
● Governmental funds are. Answer: Funds used to account for the
activities of a government that are carried out primarily to provide
services to citizens.
, ● Which group of financial statements is prepared using the "modified
accrual accounting" approach. Answer: Governmental fund financial
statements.
● Which of the following funds is most likely created with an endowed
gift. Answer: Permanent Fund
● Revenue from property taxes should be recorded in the General Fund.
Answer: In the period for which the resulting resources are required or
permitted to be used.
● Which of the following statements characterizes defined contribution
plans. Answer: The employer's obligation is satisfied by making the
appropriate amount of periodic contribution
● FASB Statement No. 158 requires that Unrecognized Prior Service
cost be amortized between which of the following journal entries.
Answer: Debit to Net Periodic Pension Cost and Credit to Other
Comprehensive Income
● Which of the following is not a component of net periodic pension
cost. Answer: Benefits paid to retirees
● FASB Statement No. 87 states that prior service cost should be.
Answer: amortized over the expected service period
