CGFM Governmental Accounting and Fund Accounting 3

Question 1

Which of the following fund balance classifications under GASB 54 is the most restrictive?

Accepted Answer

Nonspendable

Answer

Committed

Answer

Assigned

Answer

Restricted

Question 2

Under GASB 54, 'Committed' fund balance is established by:

Accepted Answer

Formal action of the government's highest level of decision-making authority

Answer

Board of directors resolution

Answer

Management decision alone

Answer

State statute or constitutional provision

Question 3

Capital Projects Funds account for:

Accepted Answer

Financial resources used for the acquisition or construction of major capital facilities

Answer

Depreciation of existing capital assets

Answer

Ongoing maintenance of infrastructure

Answer

Lease payments for capital equipment

Question 4

In governmental fund financial statements, which of the following would be reported as an expenditure rather than an expense?

Accepted Answer

Principal payment on long-term debt

Answer

Depreciation on capital assets

Answer

Amortization of bond premium

Answer

Cost of goods sold

Question 5

Which of the following is an example of a fiduciary fund?

Accepted Answer

Pension Trust Fund

Answer

Enterprise Fund

Answer

Special Revenue Fund

Answer

Internal Service Fund

Question 6

Under governmental accounting, long-term debt of governmental funds is reported in:

Accepted Answer

The government-wide statement of net position

Answer

Each governmental fund balance sheet

Answer

The notes to financial statements only

Answer

The Debt Service Fund balance sheet

Question 7

The 'available' criterion for revenue recognition under modified accrual means revenues must be collected:

Accepted Answer

Within the period or soon enough to pay current-period liabilities (typically 60 days)

Answer

Within the fiscal year only

Answer

Within 60 days after year-end, per GASB guidance

Answer

Within 90 days after the budget is approved