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Acct 510-Ch. 10 & 13 Exam Questions and
Correct Answers/ Latest Update / Already
Graded
A county government annual report includes the activities of the
primary government and its component units. Component units can be
presented in the financial statements as blended or discrete. A discrete
component unit is most likely to
Ans: issue bonds for which the component unit is financi ally
obligated.
What is the highest authoritative source of generally accepted
accounting principles for state and local governments?
Ans: GASB
The governmental funds statement of revenues, expenditures, and
changes in fund balances will never report
Ans: accrued pension costs.
Which of the following funds is not a governmental fund?
Ans: Internal service fund
All rights reserved © 2025/ 2026 |
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County activities involving economic assistance, health and safety,
education, and legislative services are categorized in its financial
statements as:
Ans: Governmental activities
Activities where a county holds resources in a trust or custodial
capacity for entities or individuals outside the county are categorized in
its financial statements as:
Ans: Fiduciary activities
County activities involving provision of services in return for user fees
are categorized in its financial statements as:
Ans: Proprietary activities
Elected officials and citizens of a town are least interested in
Ans: Material departures from GAAP in the town's financial
statements.
The GASB provides financial reporting standards for all of the following
except
Ans: federal government units.
All rights reserved © 2025/ 2026 |
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Category A in the GAAP hierarchy in state and local government
accounting consists of
Ans: GASB Statements
Which statement below best describes the GAAP hierarchy in state and
local government accounting?
Ans: GASB Statements, GASB Technical Bulletins,
Implementation Guides, and GASB-approved AICPA literature
are considered authoritative.
The GAAP hierarchy in state and local government accounting
identifies sources of authoritative guidance for:
Ans: Preparation of financial statements
The concept of interperiod equity for a government means that
Ans: current services will not be paid for by future taxpayers.
A government's financial statements report on the activities of
Ans: The primary government and all component units.
All rights reserved © 2025/ 2026 |
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A blended component unit of a county is most likely to:
Ans: Exist to provide services to the primary government.
A discretely presented component unit of a county is most likely to:
Ans: Issue bonds for which the component unit is financially
obligated.
Which of the following would most likely be reported as a blended
component unit of a county government?
Ans: The building authority is a separate legal entity whose
board is appointed by the county. The county is legally liable for
bonds issued by the building authority, which are used to
finance county construction projects.
Activities of a county hospital that is organized as a not-for-profit are
likely to be reported
Ans: As a blended component unit in the county's financial
statements.
Which statement is true concerning payment of principal and interest
on general obligation debt?
All rights reserved © 2025/ 2026 |
Acct 510-Ch. 10 & 13 Exam Questions and
Correct Answers/ Latest Update / Already
Graded
A county government annual report includes the activities of the
primary government and its component units. Component units can be
presented in the financial statements as blended or discrete. A discrete
component unit is most likely to
Ans: issue bonds for which the component unit is financi ally
obligated.
What is the highest authoritative source of generally accepted
accounting principles for state and local governments?
Ans: GASB
The governmental funds statement of revenues, expenditures, and
changes in fund balances will never report
Ans: accrued pension costs.
Which of the following funds is not a governmental fund?
Ans: Internal service fund
All rights reserved © 2025/ 2026 |
, Page |2
County activities involving economic assistance, health and safety,
education, and legislative services are categorized in its financial
statements as:
Ans: Governmental activities
Activities where a county holds resources in a trust or custodial
capacity for entities or individuals outside the county are categorized in
its financial statements as:
Ans: Fiduciary activities
County activities involving provision of services in return for user fees
are categorized in its financial statements as:
Ans: Proprietary activities
Elected officials and citizens of a town are least interested in
Ans: Material departures from GAAP in the town's financial
statements.
The GASB provides financial reporting standards for all of the following
except
Ans: federal government units.
All rights reserved © 2025/ 2026 |
, Page |3
Category A in the GAAP hierarchy in state and local government
accounting consists of
Ans: GASB Statements
Which statement below best describes the GAAP hierarchy in state and
local government accounting?
Ans: GASB Statements, GASB Technical Bulletins,
Implementation Guides, and GASB-approved AICPA literature
are considered authoritative.
The GAAP hierarchy in state and local government accounting
identifies sources of authoritative guidance for:
Ans: Preparation of financial statements
The concept of interperiod equity for a government means that
Ans: current services will not be paid for by future taxpayers.
A government's financial statements report on the activities of
Ans: The primary government and all component units.
All rights reserved © 2025/ 2026 |
, Page |4
A blended component unit of a county is most likely to:
Ans: Exist to provide services to the primary government.
A discretely presented component unit of a county is most likely to:
Ans: Issue bonds for which the component unit is financially
obligated.
Which of the following would most likely be reported as a blended
component unit of a county government?
Ans: The building authority is a separate legal entity whose
board is appointed by the county. The county is legally liable for
bonds issued by the building authority, which are used to
finance county construction projects.
Activities of a county hospital that is organized as a not-for-profit are
likely to be reported
Ans: As a blended component unit in the county's financial
statements.
Which statement is true concerning payment of principal and interest
on general obligation debt?
All rights reserved © 2025/ 2026 |
