CPA Governmental & Not-for-Profit Accounting 3

Question 1

Which GASB statement established the requirement for government-wide financial statements in addition to fund financial statements?

Accepted Answer

GASB Statement No. 34

Answer

GASB Statement No. 27

Answer

GASB Statement No. 45

Answer

GASB Statement No. 54

Question 2

A government levies a special assessment on property owners to finance sidewalk improvements. Which fund should account for the construction activity?

Accepted Answer

Capital Projects Fund

Answer

General Fund

Answer

Special Revenue Fund

Answer

Internal Service Fund

Question 3

Under GASB standards, infrastructure assets such as roads and bridges may be reported using the:

Accepted Answer

Either the depreciation method or the modified approach

Answer

Depreciation method only

Answer

Modified approach only

Answer

Cash basis approach

Question 4

In not-for-profit accounting, an unconditional promise to give (pledge) from a donor should be recognized as:

Accepted Answer

Revenue when the pledge is made

Answer

Revenue when cash is received

Answer

A contingent asset until collected

Answer

A memorandum entry only

Question 5

Which of the following is a fiduciary fund type used by governments?

Accepted Answer

Pension Trust Fund

Answer

Internal Service Fund

Answer

Enterprise Fund

Answer

Capital Projects Fund

Question 6

When a not-for-profit organization receives donated services, those services should be recognized as contribution revenue if they:

Accepted Answer

Create or enhance nonfinancial assets or require specialized skills provided by professionals

Answer

Are provided by any volunteer

Answer

Are valued at more than $1,000

Answer

Are provided by board members only

Question 7

The Management's Discussion and Analysis (MD&A) in a government's annual financial report is classified as:

Accepted Answer

Required supplementary information (RSI)

Answer

Basic financial statements

Answer

Statistical section data

Answer

Notes to the financial statements