21
The FASB has the authority to set accounting standards for all of the following organizations EXCEPT:
educational foundations established to support a private college or university
public colleges
private colleges
for profit proprietary schools
22
A local government was awarded a federal grant in the amount of $600,000 to provide for a summer employment program for young people. The grant was a reimbursement grant and was awarded on April 30, 2009. The local government expended the resources as follows: June, 2009, $220,000; July 2009, $200,000; August, 2009, $180,000. The federal government provided the funds the following months. The local government would recognize revenues for the fiscal year ended June 30, 2009 in which amount?
$ – 0 –
$600,000
$220,000
$420,000
23
To compute the net debt per capita, a user of financial statements would need to look at (in the CAFR):
The debt and the amount available to pay that debt in the governmental funds Balance Sheet and the population from the statistical section
The debt in the government-wide Statement of Net Assets, the amount available to pay that debt in the governmental funds Balance Sheet and the population from the statistical section
The debt in the governmental funds Balance Sheet, the amount available in the government-wide Statement of Net Assets and the population from the statistical section
All three items from the government-wide Statement of Net Assets
24
All the following choices would be considered a special-purpose government for financial reporting purposes EXCEPT:
a public school system
an art museum
a public hospital
a county board of supervisors
25
Under the terms of the Single Audit Act and its amendments, what percentage of federal awards expenditures must be selected for audit?
High Risk Auditee: 50%; Low Risk Auditee: 0%
High Risk Auditee: 50%; Low Risk Auditee: 25%
High Risk Auditee: 100%; Low Risk Auditee: 25%
High Risk Auditee: 100%; Low Risk Auditee: 50%
26
Under GASB rules for the financial reporting entity:
bounties are component units of the state government
blended and discretely presented component units are to be reported in government-wide financial statements but not in fund financial statements
component units are included if the primary government is financially accountable for their operations
component units must be reported in columns (discrete presentation) separate from the funds of a primary government
27
Which of the following choices regarding the proprietary fund financial statements is TRUE?
The Statement of Cash Flows may be prepared using either the direct or the indirect methods
Statements include the Statement of Net Assets (or Balance Sheet), Statement of Revenues, Expenses and Changes in Fund Net Assets and Statement of Cash Flows
The Statement of Net Assets (or Balance Sheet) reflects equity as contributed equity and retained earnings
Normally, reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements
28
GASB Statement 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, applies to all of the following investment types EXCEPT:
external investment pools
investments of pension funds
open-end mutual funds
debt securities
29
The City of Greenville had a balance in the Reserve for Encumbrances account at the end of 2008 in the amount of $30,000. During 2009, all purchase orders related to the $30,000 were filled and the invoice amount was $30,500. Which of the following would be TRUE regarding the Statement of Revenues, Expenditures and Changes in fund balances for 2009? (assume encumbrances do not lapse)
The amount shown for expenditures would include only the $500
The amount shown for expenditures would include the $30,500
The amount shown for expenditures would include only the $30,000
The amount shown for expenditures would not include items related to orders placed in 2008
30
The City of Springfield has three pension plans: a locally administered police plan for which it is trustee, a statewide cost sharing plan and a statewide agency plan. The city would include in its CAFR financial statements for:
the locally administered plan plus the statewide agency plan
all three plans
both statewide plans
the locally administered plan only
31
Under GASB rules for the financial reporting entity:
component units must be reported in columns (discrete presentation) separate from the funds of a primary government
component units are included if the primary government is financially accountable for their operations
blended and discretely presented component units are to be reported in government-wide financial statements but not in fund financial statements
counties are component units of the State Government
32
A governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances reported expenditures of $30 million, including capital outlay expenditures of $2 million. Capital assets for that government cost $70 million, including land of $10 million. Depreciable assets are amortized over 20 years, on average. The reconciliation from governmental changes in fund balances to governmental activities changes in net assets would reflect:
an increase of $ l million
a decrease of $1 million
a decrease of $3 million
an increase of $2 million
33
Ford County levies for its General Fund $1,000,000 in property taxes. In addition, the county is responsible for collecting $2,000,000 in property taxes for the consolidated school district and $500,000 in property taxes for a town within the county. 2% of all taxes levied are expected to be uncollectible. When recording the levies in an agency fund, what amount would Ford County record as Taxes Receivable for Other Governments – Current and Due to Other Governments?
$2,450,000
$2,500,000
$3,430,000
$3,500,000
34
Funds that are used to account for activities similar to those often engaged in by profit-seeking businesses are:
agency funds
proprietary funds
capital project funds
special revenue funds
35
What type of fund is used when resources are provided mainly through business like transactions to parties external to the government?
Internal Service Funds
Agency Funds
Enterprise Funds
Capital Projects Funds
36
Which part of the financial section of the CAFR is considered “Required Supplementary Information?”
Find Financial Statements
Auditor’s Report
Management’s Discussion and Analysis
Government-wide Financial Statements
37
According to NACUBO guidelines, what is the correct treatment for recognizing summer school revenues and expenses when a college’s fiscal year ends on June 30?
Recognize expenses in the year in which they were billed and the expenses in the year in which they were incurred
Recognize the entire amount of revenues and expenses in the year in which the term is predominantly conducted
Apportion the revenues and expenses to the two fiscal years, following accrual accounting practices similar to those employed by commercial enterprises
Recognize the entire amount of revenues and expenses in the year in which the term began
38
Proprietary funds utilize what basis of accounting?
Budgetary
Modified accrual
Cash
Accrual
39
Which organization promulgates the Government Auditing Standards?
The Securities and Exchange Commission
The U.S. Government Accountability Office
The American Institute of Certified Public Accountants
The U.S. Office of Management and Budget
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