NFP HW MC Exam 1 Questions and
Answers|Latest Update
The City of ' Round Lake receives a contribution of $20 million. The donor stipulates that the
money is to be invested. The principal is to remain intact, and the investment proceeds are to be
used to support a city-owned nature center. The city should report the contribution in a
a. Special revenue fund
b. Permanent fund
c. Fiduciary fund
d. Agency fund B
A city receives a $30 millon contrribution. The donor stipulates that the money is to be invested.
The principal is to remain intact and the investment proceeds are to be used to provide
scholarships for the children of city employees. The contribution should be reported as revenue
of a
a. Special revenue fund
b. Permanent fund
c. Fiduciary fund
d. Agency fund C
, The Summerville Preparatory School (a private school)receives a donation of $14 millon. The
donor stipulates that the entire amount must be used to construct a new athletic field house. The
school should classify the donation as
a. Unrestricted
b. Temporarily restricted
c. Permanently restricted
d. Semi-restricted B
Who may impose constraints for the use of a committed fund balance?
a. The government's highest level of decision-making authority
b. Creditors or bondholder
c. A majority vote of the finance committee
d. Any government official A
Under GASB Statement No. 54, what is the hierarchy Classification of fund balances?
a. Spendable, unrestricted, committed, assigned, unassigned
b. Nonspendable, restricted, committed, assigned, unassigned
c. Nonspendable, unrestricted, committed, assigned, unassigned
Answers|Latest Update
The City of ' Round Lake receives a contribution of $20 million. The donor stipulates that the
money is to be invested. The principal is to remain intact, and the investment proceeds are to be
used to support a city-owned nature center. The city should report the contribution in a
a. Special revenue fund
b. Permanent fund
c. Fiduciary fund
d. Agency fund B
A city receives a $30 millon contrribution. The donor stipulates that the money is to be invested.
The principal is to remain intact and the investment proceeds are to be used to provide
scholarships for the children of city employees. The contribution should be reported as revenue
of a
a. Special revenue fund
b. Permanent fund
c. Fiduciary fund
d. Agency fund C
, The Summerville Preparatory School (a private school)receives a donation of $14 millon. The
donor stipulates that the entire amount must be used to construct a new athletic field house. The
school should classify the donation as
a. Unrestricted
b. Temporarily restricted
c. Permanently restricted
d. Semi-restricted B
Who may impose constraints for the use of a committed fund balance?
a. The government's highest level of decision-making authority
b. Creditors or bondholder
c. A majority vote of the finance committee
d. Any government official A
Under GASB Statement No. 54, what is the hierarchy Classification of fund balances?
a. Spendable, unrestricted, committed, assigned, unassigned
b. Nonspendable, restricted, committed, assigned, unassigned
c. Nonspendable, unrestricted, committed, assigned, unassigned
