Question 1

What are the two proprietary fund types?

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Question 2

What are the four fiduciary fund types?

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Question 3

What is the definition of the term fund?

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Question 4

Which statement most accurately reflects property taxes?
A)Property taxes are derived tax revenues because property owners have the benefit of ownership.
B)Property taxes are considered a special assessment by the governing agency.
C)When recording property taxes, the receivable is recorded and the revenue is recognized when the government has an enforceable legal claim.
D)When recording property taxes, the revenue is recognized in the period in which it can be used.
E)Property taxes are the result of the government making an assessment, only when an underlying exchange has occurred.

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A)Property...

Question 5

What is the purpose of fund financial statements?

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Question 6

What are the five types of governmental funds?

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Question 7

Under modified accrual accounting, when should revenues be recognized by a governmental-type fund?

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Question 8

What are the two sets of financial statements mandated by GASB for state and local governments? For each set, what are the names of the individual statements that must be produced?

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Question 9

For a government, what kinds of operations are accounted for using a proprietary fund? Give three examples.

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Question 10

What is the primary difference between monies accounted for in the general fund and monies accounted for in the special revenue fund?

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Question 11

For what is a special revenue fund used to account?

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Question 12

The government has just voted to repair the parking garages to all government buildings and estimate the cost to be $750,000. The government discloses this decision by debiting which account?
A)Committed.
B)Nonspendable.
C)Assigned.
D)Unassigned.
E)Restricted.

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Question 13

Which of the following would be considered a derived tax revenue?
A)Collection of property taxes.
B)FICA is withheld from the employee pay.
C)A grant is received from the federal government.
D)A private citizen sends money to buy books for the local library.
E)Fees are collected on overdue library books.

Accepted Answer

Derived tax revenues are those collected through taxes directly from income or financial transactions, such as the Federal Insurance Contributions Act (FICA) taxes withheld from employee pay for Social Security and Medicare.

Question 14

A county enacted a special tax levy and the money must be used to buy unused farmland for environmental preservation. What kind of fund should be used to record the revenues generated by the tax?

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Question 15

What assets would be included in the accounting records of a city's general fund?

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Question 16

Which of the following is not a true statement regarding revenues from various types of nonexchange transactions?
A)Derived tax revenues occur as a result of sales and or income tax.
B)Imposed nonexchange revenues consist of only fines and penalties assessed by the governing agency.
C)Government mandated nonexchange transactions includes grants from the federal government to the local public-school system for a free lunch program.
D)Voluntary nonexchange transactions can originate from a governmental agency or private citizen organization.
E)Imposed nonexchange transactions revenue recognition is made in the time period when the resulting resources are required to be used or in the first period in which use is permitted.

Accepted Answer

Imposed nonexchange revenues can include fines, penalties, and also forfeitures. Therefore, statement B is not a true statement as it limits imposed nonexchange revenues to only fines and penalties.

Question 17

Under modified accrual accounting, when are expenditures recorded?

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Question 18

When should property taxes be recognized under modified accrual accounting?

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Question 19

Which organization is responsible for establishing accounting principles for governmental entities? By whom was this organization established?

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Question 20

In governmental accounting, what term is used for a decrease in financial resources?

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Quiz 11: Accounting for State and Local Governments Part 1