CGFM Governmental Accounting and Fund Accounting

Question 1

Which basis of accounting is used by governmental funds under GAAP?

Accepted Answer

Modified accrual basis

Answer

Full accrual basis

Answer

Cash basis

Answer

Budgetary basis

Question 2

Under the modified accrual basis, revenues are recognized when they are:

Accepted Answer

Measurable and available

Answer

Earned and realizable

Answer

Collected in cash

Answer

Appropriated by the legislature

Question 3

Which of the following is a proprietary fund type?

Accepted Answer

Enterprise Fund

Answer

General Fund

Answer

Special Revenue Fund

Answer

Capital Projects Fund

Question 4

The General Fund accounts for:

Accepted Answer

All financial resources not required to be accounted for in another fund

Answer

All capital asset acquisitions

Answer

Financial resources legally restricted for specific purposes

Answer

Debt service payments only

Question 5

Internal Service Funds are classified as which type of fund?

Accepted Answer

Proprietary fund

Answer

Governmental fund

Answer

Fiduciary fund

Answer

Special revenue fund

Question 6

Which fund type is used to account for resources held by a government in a trustee or agency capacity?

Accepted Answer

Fiduciary funds

Answer

Proprietary funds

Answer

Governmental funds

Answer

Debt Service funds

Question 7

Under GASB standards, which measurement focus do governmental funds use?

Accepted Answer

Current financial resources measurement focus

Answer

Economic resources measurement focus

Answer

Capital maintenance measurement focus

Answer

Operating capability measurement focus