AICPA Governmental Accounting 2

Question 1

A government records an encumbrance in the General Fund when:

Accepted Answer

A purchase order is issued

Answer

Payment is made to a vendor

Answer

Goods are received

Answer

The budget is adopted

Question 2

Infrastructure assets in government-wide statements may be accounted for using which alternative to depreciation?

Accepted Answer

Modified approach

Answer

Cost depletion method

Answer

Fair value approach

Answer

Units of production method

Question 3

Which fund type accounts for resources legally restricted to specified purposes other than debt service or capital projects?

Accepted Answer

Special revenue fund

Answer

General fund

Answer

Capital projects fund

Answer

Permanent fund

Question 4

Under GASB, which of the following would be reported as a fiduciary fund?

Accepted Answer

Pension trust fund

Answer

Internal service fund

Answer

Enterprise fund

Answer

Capital projects fund

Question 5

When a government transfers resources from the General Fund to a debt service fund, this is classified as a:

Accepted Answer

Transfer

Answer

Revenue

Answer

Expenditure

Answer

Reimbursement

Question 6

The net position section of a government-wide statement of net position does NOT include which component?

Accepted Answer

Reserved fund balance

Answer

Net investment in capital assets

Answer

Restricted net position

Answer

Unrestricted net position

Question 7

Under GASB No. 14, a component unit is included in a primary government's financial report primarily when:

Accepted Answer

The component unit is financially accountable to the primary government

Answer

The primary government appoints a majority of the board

Answer

The primary government is financially accountable to the component unit

Answer

The organizations share a physical location