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

Internal Service Funds are proprietary funds used to account for services provided by one government department to other departments on a cost-reimbursement basis.

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

Debt Service Funds account for the accumulation of resources and the payment of general long-term debt principal and interest.

Question 3

Enterprise Funds are a type of which government fund category?

Accepted Answer

Proprietary fund

Answer

Enterprise Funds are proprietary funds used to account for activities financed primarily through user charges, operating similarly to private businesses.

Question 4

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

Accepted Answer

Both government-wide and fund levels

Answer

GASB 34 established a dual reporting model requiring both government-wide financial statements (full accrual) and fund financial statements (modified accrual for governmental funds).

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

The Statement of Activities is the nonprofit equivalent of an income statement and reports all changes in net assets during the reporting period.

Accounting Online Program Practice Test

Accounting Online Program Practice Test

Accounting Online Program Governmental and Nonprofit Accounting 2