Accounting Online Program Governmental and Nonprofit Accounting 2

Question 1

Which of the following is classified as a proprietary fund in government accounting?

Accepted Answer

Internal Service Fund

Answer

Capital Projects Fund

Answer

General Fund

Answer

Special Revenue Fund

Question 2

What is the primary purpose of a Debt Service Fund?

Accepted Answer

To account for principal and interest payments on long-term debt

Answer

To finance capital asset construction projects

Answer

To account for enterprise-type government activities

Answer

To hold assets in trust for external parties

Question 3

Enterprise Funds are a type of which government fund category?

Accepted Answer

Proprietary fund

Answer

Fiduciary fund

Answer

Governmental fund

Answer

Special purpose fund

Question 4

Under GASB Statement 34, government financial reporting requires statements at which level(s)?

Accepted Answer

Both government-wide and fund levels

Answer

Fund level only

Answer

Government-wide level only

Answer

Neither; only budget-to-actual comparisons are required

Question 5

Which nonprofit financial statement reports all revenues, expenses, gains, and losses, showing the change in net assets?

Accepted Answer

Statement of Activities

Answer

Statement of Cash Flows

Answer

Statement of Financial Position

Answer

Statement of Functional Expenses

Question 6

A permanently restricted endowment contribution to a nonprofit must be:

Accepted Answer

Maintained in perpetuity per the donor's stipulation

Answer

Expended within the current fiscal year

Answer

Returned to the donor if not used within five years

Answer

Transferred to government control upon dissolution

Question 7

What is an encumbrance in governmental fund accounting?

Accepted Answer

A commitment of appropriated funds for a future expenditure such as a purchase order

Answer

A long-term debt obligation recorded on the balance sheet

Answer

A restriction placed on capital assets by creditors

Answer

A tax assessment levied against property owners