GAC Governmental Financial Reporting & Analysis 3

Question 1

A government issues $10 million in general obligation bonds. In which fund would the debt service payments typically be accounted for?

Accepted Answer

Debt Service Fund

Answer

Debt Service Funds accumulate resources and account for payment of principal and interest on long-term general obligation debt.

Question 2

Under GASB 68, pension expense reported in government-wide statements reflects which of the following?

Accepted Answer

Changes in net pension liability plus deferred inflows and outflows

Answer

GASB 68 pension expense includes service cost, interest, and amortization of deferred inflows/outflows related to the net pension liability.

Question 3

Which of the following is classified as a special revenue fund?

Accepted Answer

A fund receiving dedicated state gas tax revenues for road maintenance

Answer

Special revenue funds account for legally restricted or committed revenue sources earmarked for specific purposes other than debt service or capital projects.

Question 4

What is the primary purpose of the Statistical Section in a CAFR?

Accepted Answer

To provide historical trend data and contextual information beyond the financial statements

Answer

The Statistical Section provides multi-year trend data, demographic information, and economic data to help users assess the government's economic condition.

Question 5

A government reports a $500,000 interfund transfer from the General Fund to a Capital Projects Fund. How should this be presented?

Accepted Answer

As an other financing source in Capital Projects Fund and other financing use in General Fund

Answer

Interfund transfers are reported as other financing sources (uses) rather than revenues or expenditures in governmental fund statements.

(GAC) Governmental Accounting Certification Practice Test

(GAC) Governmental Accounting Certification Practice Test

GAC Governmental Financial Reporting & Analysis 3