20) If taxes or special assessments are levied by the Genera

20) If taxes or special assessments are levied by the General Fund and then-transferred to the debt service fund, they are:

A. included as transfers out in the General Fund but are not budgeted as revenue in that fund

B. recorded as revenues of the debt service fund

C. recorded as an expense and voucher payable by the general fund and are recorded as a revenue and receivable by the debt service fund.

D. included in the revenues budget of the general fund and budgeted by that fund as transfers out to the debt service fund

21) What type of serial bond schedules an increase each year in annual principal repayment approximately equivalent to the decrease in interest payments?

A. Annuity

B. Regular

C. Irregular

D. Deferred

22) A government had the following transfers reported in its governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances: (1) a transfer from the General Fund to a debt service fund in the amount of $l,000,000; (2) a transfer from the General Fund to an enterprise fund in the amount of $1,200,000; and (3) a transfer from the General Fund to an internal service fund in the amount of $400,000. The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be:

A. $1,200,000

B. $2,600,000

C. $ 800,000

D. $1,400,000

23) A governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances reported expenditures of $30 million, including capital outlay expenditures of $2 million. Capital assets for that government cost $70 million, including land of $10 million. Depreciable assets are amortized over 20 years, on average. The reconciliation from governmental changes in fund balances to governmental activities changes in net assets would reflect:

A. a decrease of $3 million

B. a decrease of $1 million

C. an increase of $2 million

D. an increase of $ l million

24) A government's Statement of Revenues, Expenditures and Changes in Fund Balances reflected proceeds of bonds in the amount of $1,000,000. That statement also reflected expenditures for debt service in the amount of $3,000,000, including $2,600,000 for principal payments. Assuming no other changes, the effect, when moving from the change in fund balances in the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances to the change in net assets for governmental activities in the Statement of Activities would be a:

A. $1,600,000 increase

B. $1,000,000 increase

C. $1,600,000 decrease

D. $1,000,000 decrease

25) What are the three major sections of the Comprehensive Annual Financial Report?

A. Introductory Section, Financial Section, Budgetary Comparison.

B. Introductory Section, Financial Section, Statistical Section.

C. Introductory Section, Financial Section, Reporting Infrastructure.

D. Introductory Section, Financial Section, Management Discussion and Analysis.

26) Under GASB rules for the financial reporting entity:

A. blended and discretely presented component units are to be reported in government-wide financial statements but not in fund financial statements

B. component units are included if the primary government is financially accountable for their operations

C. component units must be reported in columns (discrete presentation) separate from the funds of a primary government

D. counties are component units of the State Government

27) In governmental fund statements revenues are reported by ________ and expenditures are reported by _______ and by _________.

A. Function, character, source

B. Source, character, function

C. Function, function, source

D. Source, source, character

28) According to NACUBO guidelines, what is the correct treatment for recognizing summer school revenues and expenses when a college's fiscal year ends on June 30?

A. Recognize expenses in the year in which they were billed and the expenses in the year in which they were incurred

B. Recognize the entire amount of revenues and expenses in the year in which the term is predominantly conducted

C. Apportion the revenues and expenses to the two fiscal years, following accrual accounting practices similar to those employed by commercial enterprises

D. Recognize the entire amount of revenues and expenses in the year in which the term began

Solution Summary

20) If taxes or special assessments are levied by the General Fund and then-transferred to the debt service fund, they are:

A. included as transfers out in the General Fund but are not budgeted as revenue in that fund

B. recorded as revenues of the debt service fund

C. recorded as an expense and voucher payable by the general fund and are recorded as a revenue and receivable by the debt service fund.

D. included in the revenues budget of the general fund and budgeted by that fund as transfers out to the debt service fund

21) What type of serial bond schedules an increase each year in annual principal repayment approximately equivalent to the decrease in interest payments?

A. Annuity

B. Regular

C. Irregular

D. Deferred

22) A government had the following transfers reported in its governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances: (1) a transfer from the General Fund to a debt service fund in the amount of $l,000,000; (2) a transfer from the General Fund to an enterprise fund in the amount of $1,200,000; and (3) a transfer from the General Fund to an internal service fund in the amount of $400,000. The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be:

A. $1,200,000

B. $2,600,000

C. $ 800,000

D. $1,400,000

23) A governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances reported expenditures of $30 million, including capital outlay expenditures of $2 million. Capital assets for that government cost $70 million, including land of $10 million. Depreciable assets are amortized over 20 years, on average. The reconciliation from governmental changes in fund balances to governmental activities changes in net assets would reflect:

A. a decrease of $3 million

B. a decrease of $1 million

C. an increase of $2 million

D. an increase of $ l million

24) A government's Statement of Revenues, Expenditures and Changes in Fund Balances reflected proceeds of bonds in the amount of $1,000,000. That statement also reflected expenditures for debt service in the amount of $3,000,000, including $2,600,000 for principal payments. Assuming no other changes, the effect, when moving from the change in fund balances in the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances to the change in net assets for governmental activities in the Statement of Activities would be a:

A. $1,600,000 increase

B. $1,000,000 increase

C. $1,600,000 decrease

D. $1,000,000 decrease

25) What are the three major sections of the Comprehensive Annual Financial Report?

A. Introductory Section, Financial Section, Budgetary Comparison.

B. Introductory Section, Financial Section, Statistical Section.

C. Introductory Section, Financial Section, Reporting Infrastructure.

D. Introductory Section, Financial Section, Management Discussion and Analysis.

26) Under GASB rules for the financial reporting entity:

A. blended and discretely presented component units are to be reported in government-wide financial statements but not in fund financial statements

B. component units are included if the primary government is financially accountable for their operations

C. component units must be reported in columns (discrete presentation) separate from the funds of a primary government

D. counties are component units of the State Government

27) In governmental fund statements revenues are reported by ________ and expenditures are reported by _______ and by _________.

A. Function, character, source

B. Source, character, function

C. Function, function, source

D. Source, source, character

28) According to NACUBO guidelines, what is the correct treatment for recognizing summer school revenues and expenses when a college's fiscal year ends on June 30?

A. Recognize expenses in the year in which they were billed and the expenses in the year in which they were incurred

B. Recognize the entire amount of revenues and expenses in the year in which the term is predominantly conducted

C. Apportion the revenues and expenses to the two fiscal years, following accrual accounting practices similar to those employed by commercial enterprises

D. Recognize the entire amount of revenues and expenses in the year in which the term began