Advanced Accounting exam 100% solved

Advanced Accounting exam 100% solved Which of the following is not a governmental fund? - answerInternal Service Fund. What is the purpose of a Special Revenue Fund? - answerTo account for revenues legally or externally restricted as an operating expenditure. What is the purpose of Enterprise Funds? - answerTo account for operations financed in whole or in part by outside user charges. Which of the following statements is true? - answerThere are five different types of governmental funds. A government expects to receive revenues of $400,000 but has approved expenditures of $430,000. The anticipated shortage will have an impact on which of the following terms? - answerInterperiod equity. A citizen of the City of Townsend gives it a gift of $22,000 in investments. The citizen requires that the investments be held but any resulting income must be used to help maintain the city's cemetery. In which fund should this asset be reported? - answerPermanent Funds. Which of the following statements is correct about the reporting of governmental funds? - answerGovernment-wide financial statements measure economic resources. Which of the following statements is correct about the reporting of governmental funds? - answerFund financial statements measure revenues and expenditures based on modified accrual accounting During the current year, a government buys land for $80,000. Which of the following is not true? - answerThe land could be reported as an asset by the governmental funds in the fund financial statements.