AICPA Governmental Accounting 3

Question 1

GASB Statement No. 54 classifies fund balance in governmental funds into how many categories?

Accepted Answer

Five

Answer

Three

Answer

Four

Answer

Two

Question 2

The 'nonspendable' fund balance classification includes amounts that:

Accepted Answer

Cannot be spent because they are in non-liquid form or must remain intact

Answer

Are restricted by external creditors

Answer

Are committed by formal government action

Answer

Are designated for specific future purposes

Question 3

Under modified accrual accounting, property tax revenues are recognized:

Accepted Answer

In the period for which levied if collected within the availability period

Answer

When the tax bill is mailed

Answer

When cash is collected

Answer

When the tax lien is established

Question 4

Which of the following appears in a Statement of Cash Flows for a proprietary fund but does NOT apply to governmental funds?

Accepted Answer

Cash flows from capital and related financing activities

Answer

Operating revenues

Answer

Cash flows from operating activities

Answer

Cash flows from investing activities

Question 5

A government issues general obligation bonds to finance capital construction. The proceeds should be recorded in:

Accepted Answer

A capital projects fund

Answer

The General Fund

Answer

A debt service fund

Answer

An enterprise fund

Question 6

Under GASB, the Management's Discussion and Analysis (MD&A) serves what primary purpose?

Accepted Answer

To provide management's objective analytical overview of the government's financial activities

Answer

To replace the basic financial statements

Answer

To report on internal control weaknesses

Answer

To present the government's budget vs. actual comparison

Question 7

Under GASB Statement No. 68, where are net pension liabilities reported?

Accepted Answer

As a liability on the government-wide statement of net position

Answer

Only in the notes to financial statements

Answer

Only in required supplementary information

Answer

As a memorandum item in fund statements