1) Recognizing revenues when measurable and available for paying current obligations and expenditures when incurred describes which basis of accounting?\t\u00a0\t1. \ufffd \ufffd\u00a0 Budgetary\t2. \ufffd \ufffd\u00a0 Modified cash\t3. \ufffd \ufffd\u00a0 Modified accrual\t4. \ufffd \ufffd\u00a0 Accrual\t\u00a0\t2) Which of the following uses the flow of economic resources measurement focus?\t\u00a0\t1. \ufffd \ufffd\u00a0 Internal Service Fund\t2. \ufffd \ufffd\u00a0 Special Revenue Fund\t3. \ufffd \ufffd\u00a0 Debt Service Fund\t4. \ufffd \ufffd\u00a0 General Fund\t\u00a0\t\u00a0\t3) The organization that designates which authoritative standard-setting body is responsible for establishing accounting and financial reporting standards for particular kinds of organizations”\ufffdfederal, state, and local government; not-for-profit; and business organizations”\ufffdis the\t\u00a0\t1. \ufffd \ufffd\u00a0 Association of Government Accountants\t2. \ufffd \ufffd\u00a0 Government Finance Officers Association\t3. \ufffd \ufffd\u00a0 Financial Accounting Foundation\t4. \ufffd \ufffd\u00a0 American Institute of Certified Public Accountants\t\u00a0\t4) Which of the following has contributed most to governments’ increased interest in activity-based accounting?\t\u00a0\t1. \ufffd \ufffd\u00a0 The Single Audit Act of 1984, and 1996 Amendments\t2. \ufffd \ufffd\u00a0 Increased demand for high-profile management tools to bolster the image of government\t3. \ufffd \ufffd\u00a0 Implementation of innovative management approaches”\ufffdsuch as TQM and SEA measures”\ufffdin response to public demand for greater accountability and productivity\t4. \ufffd \ufffd\u00a0 GASB standards\t\u00a0\t\u00a0\t5) State reimbursement to schools for a portion of any special education costs incurred is an example of which category of nonexchange transactions?\t\u00a0\t1. \ufffd \ufffd\u00a0 Voluntary nonexchange revenue\t2. \ufffd \ufffd\u00a0 Government mandated nonexchange revenue\t3. \ufffd \ufffd\u00a0 Imposed tax revenue\t4. \ufffd \ufffd\u00a0 Derived tax revenue\t\u00a0\t\u00a0\t6) Which of the following is a characteristic that distinguishes government and not-for-profit (G&NP) organizations from business enterprises?\t\u00a0\t1. \ufffd \ufffd\u00a0 Accumulating wealth on behalf of its constituents is a key goal of G&NP organizations and business enterprises.\t2. \ufffd \ufffd\u00a0 Net income is an appropriate performance evaluation measurement for most of these organizations.\t3. \ufffd \ufffd\u00a0 The resource providers of G&NP organizations often do not receive services commensurate with the amount of resources they provide.\t4. \ufffd \ufffd\u00a0 Borrowing is not a significant source of financing.\t\u00a0\t\u00a0\t7) Which of the following is not specifically identified in the GAAP hierarchy for state and local governments?\t\u00a0\t1. \ufffd \ufffd\u00a0 GAO’s Yellow Book\t2. \ufffd \ufffd\u00a0 GASB Implementation Guides\t3. \ufffd \ufffd\u00a0 GASB Technical Bulletins\t4. \ufffd \ufffd\u00a0 AICPA Industry Audit and Accounting Guides\t\u00a0\t\u00a0\t8) The purpose of encumbrance accounting is to\t\u00a0\t1. \ufffd \ufffd\u00a0 prevent government waste\t2. \ufffd \ufffd\u00a0 replace expense accounting in governments\t3. \ufffd \ufffd\u00a0 avoid expenditures exceeding appropriations\t4. \ufffd \ufffd\u00a0 manage a government’s cash flows\t\u00a0\t\u00a0\t9) The governmental GAAP hierarchy was established by\t\u00a0\t1. \ufffd \ufffd\u00a0 The Financial Accounting Foundation (FAF)\t2. \ufffd \ufffd\u00a0 The American Institute of Certified Public Accountants (AICPA)\t3. \ufffd \ufffd\u00a0 The Financial Accounting Standards Board (FASB)\t4. \ufffd \ufffd\u00a0 The Governmental Accounting Standards Board (GASB)\t\u00a0\t\u00a0\t10) Which of the following budgetary approaches starts with line-item expenditures and applies a factor approximating the inflation rate to most items, unless specific information is available to suggest that a different factor should be applied?\t\u00a0\t1. \ufffd \ufffd\u00a0 Incremental budgeting\t2. \ufffd \ufffd\u00a0 Program budgeting\t3. \ufffd \ufffd\u00a0 Zero-based budgeting\t4. \ufffd \ufffd\u00a0 Performance budgeting\t\u00a0\t\u00a0\t11) Which of the following is not one of the purposes of a budget considered in the Government Finance Officer Association Distinguished Budget Presentation Award Program?\t\u00a0\t1. \ufffd \ufffd\u00a0 As a policy document\t2. \ufffd \ufffd\u00a0 As a communication device\t3. \ufffd \ufffd\u00a0 As a legal document\t4. \ufffd \ufffd\u00a0 As a financial plan\t\u00a0\t\u00a0\t12) Which of the following statements is not consistent with the GASB’s Budgeting, Budgetary Control, and Budgetary Reporting Principle?\t\u00a0\t1. \ufffd \ufffd\u00a0 An annual budget must be adopted using generally accepted accounting principles.\t2. \ufffd \ufffd\u00a0 The budgetary comparison schedule should present both the original and the final appropriated budgets for the reporting period.\t3. \ufffd \ufffd\u00a0 The accounting system should provide the basis for appropriate budgetary control.\t4. \ufffd \ufffd\u00a0 Budgetary comparison schedules should be presented as required supplementary information for the General Fund and each major special revenue fund for which an annual budget has been adopted.\t\u00a0\t13) The government official typically responsible for providing department heads with technical support such as clerical assistance with budget computation and maintenance of document files relating to the budget is\t\u00a0\t1. \ufffd \ufffd\u00a0 the chief financial officer\t2. \ufffd \ufffd\u00a0 the director of finance\t3. \ufffd \ufffd\u00a0 the legislative budget analyst\t4. \ufffd \ufffd\u00a0 the budget officer\t\u00a0\t14) Cash disbursements budgets\t\u00a0\t1. \ufffd \ufffd\u00a0 need to be prepared because GASB standards specify the use of the accrual basis of accounting for governments\t2. \ufffd \ufffd\u00a0 should be prepared only for each fiscal year because disbursements for each month are approximately equal\t3. \ufffd \ufffd\u00a0 should usually be prepared for each month of the year, or for shorter intervals, in order to facilitate planning short-term borrowings and investments\t4. \ufffd \ufffd\u00a0 should be prepared only for funds not required to operate under legal appropriation budgets\t\u00a0\t15) Cash receipts and cash disbursement budgets for a government\t\u00a0\t1. \ufffd \ufffd\u00a0 should be prepared for all funds for the entire fiscal year\t2. \ufffd \ufffd\u00a0 should be prepared for only those funds for which appropriations budgets are not required by law\t3. \ufffd \ufffd\u00a0 should be prepared as needed to enhance cash management, investment management, and short-term debt management\t4. \ufffd \ufffd\u00a0 should be prepared for only those funds for which appropriations budgets are required by law to be prepared on the accrual basis or the modified accrual basis\t\u00a0\t16) In accounting for state and local governments, the modified accrual basis is required for\t\u00a0\t1. \ufffd \ufffd\u00a0 proprietary and fiduciary funds\t2. \ufffd \ufffd\u00a0 all funds\t3. \ufffd \ufffd\u00a0 governmental funds only\t4. \ufffd \ufffd\u00a0 proprietary funds only\t\u00a0\t17) The accounting system used by a state or local government must make it possible\t\u00a0\t1. \ufffd \ufffd\u00a0 to fairly present the financial position and results of financial operations of the government as a whole, as well as fund financial activity in conformity with GAAP, and to demonstrate compliance with finance-related legal and contractual provisions\t2. \ufffd \ufffd\u00a0 to provide web-based bond offering statements to investment firms\t3. \ufffd \ufffd\u00a0 to prepare financial statements as required by the Financial Accounting Standards Board\t4. \ufffd \ufffd\u00a0 to prepare consolidated accrual basis statements for the government as a whole\t\u00a0\t18) Which of the following is not a characteristic of a fund as defined by GASB standards?\t\u00a0\t1. \ufffd \ufffd\u00a0 An accounting entity\t2. \ufffd \ufffd\u00a0 A self-balancing set of accounts\t3. \ufffd \ufffd\u00a0 A fiscal entity\t4. \ufffd \ufffd\u00a0 A segregated quantity of cash and other financial resources on deposit with a designated trustee\t\u00a0\t19) Which of the following costs would be allowable under OMB Circular A-87?\t\u00a0\t1. \ufffd \ufffd\u00a0 Advertising on the Internet by a defense contractor\t2. \ufffd \ufffd\u00a0 Depreciation expense on the equipment used in a federal research grant\t3. \ufffd \ufffd\u00a0 Lobbying for continuation of an educational program by the school administrator\t4. \ufffd \ufffd\u00a0 Indirect costs of the state legislature\t\u00a0\t20) Which of the following should not be reported as a liability of the General Fund?\t\u00a0\t1. \ufffd \ufffd\u00a0 General obligation bonds payable (due in 10 years)\t2. \ufffd \ufffd\u00a0 Due to federal government\t3. \ufffd \ufffd\u00a0 Vouchers payable\t4. \ufffd \ufffd\u00a0 Tax anticipation notes payable\t\u00a0\t21) Cash disbursements budgets\t\u00a0\t1. \ufffd \ufffd\u00a0 need to be prepared because GASB standards specify the use of the accrual basis of accounting for governments\t2. \ufffd \ufffd\u00a0 should be prepared only for each fiscal year because disbursements for each month are approximately equal\t3. \ufffd \ufffd\u00a0 should usually be prepared for each month of the year, or for shorter intervals, in order to facilitate planning short-term borrowings and investments\t4. \ufffd \ufffd\u00a0 should be prepared only for funds not required to operate under legal appropriation budgets\t\u00a0\t22) The schedule of legally required events in the budgeting process is generally referred to as the\t\u00a0\t1. \ufffd \ufffd\u00a0 budget docket\t2. \ufffd \ufffd\u00a0 budget calendar\t3. \ufffd \ufffd\u00a0 legal timetable\t4. \ufffd \ufffd\u00a0 hearing schedule\t\u00a0\t23) Which basis of accounting best contributes to measuring the cost of services for rational budgeting purposes?\t\u00a0\t1. \ufffd \ufffd\u00a0 Accrual\t2. \ufffd \ufffd\u00a0 Cash\t3. \ufffd \ufffd\u00a0 Modified cash\t4. \ufffd \ufffd\u00a0 Modified accrual\t\u00a0\t24) Which of the following might appropriately be termed an outcome indicator for a police department that reports service efforts and accomplishments indicators?\t\u00a0\t1. \ufffd \ufffd\u00a0 Number of crimes investigated\t2. \ufffd \ufffd\u00a0 Number of personnel hours expended\t3. \ufffd \ufffd\u00a0 Value of property lost due to crime\t4. \ufffd \ufffd\u00a0 Hours of patrol\t\u00a0\t34) A budgetary comparison schedule includes the following columns except\t\u00a0\t1. \ufffd \ufffd\u00a0 actual on the GAAP basis\t2. \ufffd \ufffd\u00a0 actual on the budgetary basis\t3. \ufffd \ufffd\u00a0 final revised budget\t4. \ufffd \ufffd\u00a0 the original budget\t\u00a0\t\u00a0\t35) The city of Newton purchased a vehicle for the police department. If the operations of the police department are financed by general revenues, the purchase would be recorded in which funds and\/or activities?\t\u00a0\t1. \ufffd \ufffd\u00a0 General Fund: No; governmental activities: No\t2. \ufffd \ufffd\u00a0 General Fund: Yes; governmental activities: Yes\t3. \ufffd \ufffd\u00a0 General Fund: No; governmental activities: Yes\t4. \ufffd \ufffd\u00a0 General Fund: Yes; governmental activities: No\t\u00a0\t\u00a0\t36) A Special Revenue Fund\t\u00a0\t1. \ufffd \ufffd\u00a0 must be used to account for all expandable restricted resources\t2. \ufffd \ufffd\u00a0 must be used to account for all nonexpendable restricted resources\t3. \ufffd \ufffd\u00a0 is not required except when its use is legally or contractually mandated\t4. \ufffd \ufffd\u00a0 is used to account for resources restricted for capital or debt service purposes\t\u00a0\t37) Taxes receivable of $80,000, which have a related allowance for uncollectible taxes of $8,000, become delinquent. The entry to record this includes a debit to\t\u00a0\t1. \ufffd \ufffd\u00a0 Allowance for Uncollectible Current Taxes\t2. \ufffd \ufffd\u00a0 Revenues\t3. \ufffd \ufffd\u00a0 Allowance for Uncollectible Delinquent Taxes\t4. \ufffd \ufffd\u00a0 Taxes Receivable”\ufffdCurrent\t\u00a0\t38) Sale taxes are an example of which category of nonexchange transactions?\t\u00a0\t1. \ufffd \ufffd\u00a0 Imposed tax revenue\t2. \ufffd \ufffd\u00a0 Voluntary nonexchange revenue\t3. \ufffd \ufffd\u00a0 Government mandated nonexchange revenue\t4. \ufffd \ufffd\u00a0 Derived tax revenue\t\u00a0\t\u00a0\t39) Which of the following does not affect the “Excess of Revenues over Expenditures”?\t\u00a0\t1. \ufffd \ufffd\u00a0 incurring and paying salaries\t2. \ufffd \ufffd\u00a0 transfers from Enterprise Funds\t3. \ufffd \ufffd\u00a0 property taxes levied and collected in the year\t4. \ufffd \ufffd\u00a0 purchase of capital assets\t\u00a0\t\u00a0\t40) The operation of a municipality’s recreation facilities and sites such as ball fields, gymnasiums, and tracks are most likely to be accounted for in a\t\u00a0\t1. \ufffd \ufffd\u00a0 capital projects fund\t2. \ufffd \ufffd\u00a0 internal service fund\t3. \ufffd \ufffd\u00a0 general fund\t4. \ufffd \ufffd\u00a0 enterprise fund\t\u00a0\t\u00a0\t41) A municipality operates a local landfill. How could the landfill facility’s operations be reported in the municipality’s financial statements?\t\u00a0\t1. \ufffd \ufffd\u00a0 only in an enterprise fund\t2. \ufffd \ufffd\u00a0 either in the general fund or a capital projects fund\t3. \ufffd \ufffd\u00a0 either in the general fund or an enterprise fund\t4. \ufffd \ufffd\u00a0 only in a general fund\t\u00a0\t42) A computer was purchased from unrestricted resources for a general government department. The government paid cash for the computer at the purchase date. Which of the following is not an effect of this transaction in the General Fund?\t\u00a0\t1. \ufffd \ufffd\u00a0 Current liabilities do not change.\t2. \ufffd \ufffd\u00a0 Fund balance decreases.\t3. \ufffd \ufffd\u00a0 Current assets decrease.\t4. \ufffd \ufffd\u00a0 Capital assets increase.\t\u00a0\t43) If an expenditure was inadvertently charged to the General Fund instead of the appropriate Special Revenue Fund, what effect would the correction of this error later in the same fiscal year have on the General Fund?\t\u00a0\t1. \ufffd \ufffd\u00a0 Expenditures would be decreased.\t2. \ufffd \ufffd\u00a0 Transfers in would be increased.\t3. \ufffd \ufffd\u00a0 An entry would be made directly to the General Fund’s fund balance to correct the error.\t4. \ufffd \ufffd\u00a0 Revenues would be increased.\t\u00a0\t\u00a0\t44) The county received a $75,000 payment in lieu of taxes from the water Enterprise Fund. The Enterprise Fund receives no service from the county for this payment. The General Fund should report the payment in\t\u00a0\t1. \ufffd \ufffd\u00a0 revenues\t2. \ufffd \ufffd\u00a0 special item\t3. \ufffd \ufffd\u00a0 other financing sources “\ufffd transfer\t4. \ufffd \ufffd\u00a0 interfund charges\t\u00a0\t45) If a state law requires local governments to prepare General Fund and special revenue fund budgets on a basis that differs from the basis of accounting required by generally accepted accounting principles (GAAP), then which of the following is true?\t\u00a0\t1. \ufffd \ufffd\u00a0 Both the budgeted and actual amounts in the budgetary comparison schedule prepared as part of the required supplementary information should be reported on the GAAP basis; a separate budget-basis comparison schedule should be prepared for the appropriate state oversight body.\t2. \ufffd \ufffd\u00a0 Only a budgetary comparison schedule prepared for the appropriate state oversight body is required.\t3. \ufffd \ufffd\u00a0 The actual amounts in the budgetary comparison schedule should be reported using the government’s budgetary basis.\t4. \ufffd \ufffd\u00a0 The actual amounts in the budgetary comparison schedule should be reported on the GAAP basis.<\/p>\n","protected":false},"excerpt":{"rendered":"
1) Recognizing revenues when measurable and available for paying current obligations and expenditures when incurred describes which basis of accounting? \u00a0 1. \ufffd \ufffd\u00a0 Budgetary 2. \ufffd \ufffd\u00a0 Modified cash 3. \ufffd \ufffd\u00a0 Modified accrual 4. \ufffd \ufffd\u00a0 Accrual \u00a0 Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200589","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200589","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200589"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200589\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}