Government & NFP Exam 1 - Ch1-4 MBC
Quiz Questions and Answers 100% Solved
State which category of funds (governmental-type, proprietary type, or fiduciary type) would be
used by a state government for each of the following purposes:
1. To construct a new office building for use by various departments
2. To pay salaries of personnel who maintain state parks
3. To accumulate resources in a trust fund to pay pension benefits for its employees
4. To collect sales taxes for local governments who "piggy-back" their sales taxes on top of the
state sales tax
5. To operate a central printing department that prints forms and reports for all state departments
AnswerFiduciary typeGovernmental-typeProprietary type Governmental
Governmental
Fiduciary
Fiduciary
Proprietary
For each scenario shown below, state which specific fund is used to account for the activity and
which measurement focus and basis of accounting is used within the fund.
,1. To construct a new office building for use by various departments
2. To pay salaries of personnel who maintain state parks
3. To accumulate resources in a trust fund to pay pension benefits for its employees
4. To collect sales taxes for local governments who "piggy-back" their sales taxes on top of the
state sales tax
5. To operate a central printing department that prints forms and reports for all state departments
1. Capital Project, Current Financial Resources, Mod Accrual
2. General Fund, Current Financial Resources, Mod Accrual
3. Pension Trust Fund, Economic Resources, Accrual
,4. Custodial Fund, Economic Resources, Accrual
5. Internal Service Fund, Economic Resources, Accrual
1. Services are provided to the general public, and the costs of providing the services are
financed by user charges.
2. Resources are accumulated to pay principal and interest on general long-term debt.
3. Salaries are paid to police officers, fire fighters, and other personnel of the operating
departments.
4. Goods or services are furnished to other segments of the government on a user charge basis.
5. Specific revenue sources are dedicated to a particular purpose other than capital projects or
debt service.
6. Expenditures are made by the city's streets department.
7. An "operating income" figure is computed. Enterprise Fund
, Debt Service Fund
General Fund
Internal Service fund
Special Revenue Fund
General Fund
Enterprise fund and Internal Service Fund
Governments and nonprofit entities are similar in many ways. Which of the following statements
is not true?
a. Neither governments nor nonprofit entities have a profit motive.
b. Both governments and nonprofit entities provide services.
c. Both governments and nonprofit entities assess taxes.
d. Both governments and nonprofit entities often report restricted resources c. Both
governments and nonprofit entities assess taxes.
Successful entities prepare budgets. Which of the following entities is generally required by law
to prepare a budget?
a. Commercial business enterprises.
b. Governments.
Quiz Questions and Answers 100% Solved
State which category of funds (governmental-type, proprietary type, or fiduciary type) would be
used by a state government for each of the following purposes:
1. To construct a new office building for use by various departments
2. To pay salaries of personnel who maintain state parks
3. To accumulate resources in a trust fund to pay pension benefits for its employees
4. To collect sales taxes for local governments who "piggy-back" their sales taxes on top of the
state sales tax
5. To operate a central printing department that prints forms and reports for all state departments
AnswerFiduciary typeGovernmental-typeProprietary type Governmental
Governmental
Fiduciary
Fiduciary
Proprietary
For each scenario shown below, state which specific fund is used to account for the activity and
which measurement focus and basis of accounting is used within the fund.
,1. To construct a new office building for use by various departments
2. To pay salaries of personnel who maintain state parks
3. To accumulate resources in a trust fund to pay pension benefits for its employees
4. To collect sales taxes for local governments who "piggy-back" their sales taxes on top of the
state sales tax
5. To operate a central printing department that prints forms and reports for all state departments
1. Capital Project, Current Financial Resources, Mod Accrual
2. General Fund, Current Financial Resources, Mod Accrual
3. Pension Trust Fund, Economic Resources, Accrual
,4. Custodial Fund, Economic Resources, Accrual
5. Internal Service Fund, Economic Resources, Accrual
1. Services are provided to the general public, and the costs of providing the services are
financed by user charges.
2. Resources are accumulated to pay principal and interest on general long-term debt.
3. Salaries are paid to police officers, fire fighters, and other personnel of the operating
departments.
4. Goods or services are furnished to other segments of the government on a user charge basis.
5. Specific revenue sources are dedicated to a particular purpose other than capital projects or
debt service.
6. Expenditures are made by the city's streets department.
7. An "operating income" figure is computed. Enterprise Fund
, Debt Service Fund
General Fund
Internal Service fund
Special Revenue Fund
General Fund
Enterprise fund and Internal Service Fund
Governments and nonprofit entities are similar in many ways. Which of the following statements
is not true?
a. Neither governments nor nonprofit entities have a profit motive.
b. Both governments and nonprofit entities provide services.
c. Both governments and nonprofit entities assess taxes.
d. Both governments and nonprofit entities often report restricted resources c. Both
governments and nonprofit entities assess taxes.
Successful entities prepare budgets. Which of the following entities is generally required by law
to prepare a budget?
a. Commercial business enterprises.
b. Governments.
