Reference no: EM131704666

Question 1. Which of the following funds is likely to have the caption "long-term bonds payable" in its fund balance sheet/statement of net position?

a. Capital Projects Fund

b. Enterprise Fund

c. General Fund

d. Debt Service Fund

Question 2. Which of the following funds is likely to have the caption "equipment" in its fund balance sheet/statement of net position?

a. Capital Projects Fund

b. Agency Fund

c. Enterprise Fund

d. General Fund

Question 3. A state government collects sales taxes both for the state and for all counties within the state that levy a sales tax. In which fund should the state record the liability for sales taxes it holds on behalf of the counties?

a. Agency Fund

b. Special Revenue Fund

c. General Fund d. Enterprise Fund

Question 4. Which of the following statements is true regarding accounting for capital assets by state and local governments?

a. Capital outlays are recorded as expenditures in Internal Service Funds.

b. Capital outlays are recorded as assets in Enterprise Funds, but the depreciation on those assets is recorded in the General Fund.

c. Capital outlays are recorded as assets in Special Revenue Funds and are depreciated in those funds.

d. Capital outlays are recorded as capital outlay expenditures in the General Fund.

Question 5. Which of the following statements is true regarding the accounting measurement implications of the current financial resources measurement focus and modified accrual basis of accounting?

a. Capital assets are recorded as assets when they are acquired.

b. Revenues are recognized when they are earned.

c. Expenditures and liabilities for compensated absences are recognized when the liabilities come due for payment as employees resign or retire.

d. A fund liability is recorded upon the receipt of proceeds from the sale of bonds.

Question 6. A city maintains a motor pool for all city-owned vehicles. It charges city agencies as the vehicles are used, so that the charges cover the cost of operating and maintaining the vehicles. Which fund should the city use to account for pool revenues and expenses?

a. General Fund

b. Internal Service Fund

c. Special Revenue Fund

d. Enterprise Fund

Question 7. A county is responsible for holding temporarily idle funds owned by school districts and investing the funds until needed. Which type of fund should the county use to report the activities and balances held for the school districts?

a. Enterprise type

b. Fiduciary type

c. Governmental type

d. Special Purpose type

Question 8. When a municipal electric utility bills the municipal Police Department for electric services, two funds are needed to record the transaction. Which two are needed?

a. Enterprise Fund and Internal Service Fund

b. Enterprise Fund and General Fund

c. Internal Service Fund and General Fund

d. Special Revenue Fund and Agency Fund