McGrawHill Connect Problems for Exam 2 (Gov Not For Profit Acct)

chapters 6, 7, 8, and 9

GASB requires enterprise funds to be used under which of the following circumstances?

All of the choices are correct.

The Statement of Cash Flows for a proprietary fund would include which of the following?

Operating, investing, capital and related financing, and noncapital related financing.

GASB requires the _____ method to report cash flows from operating activities in the Statement of Cash Flows.

direct

Internal service funds account for:

activities that produce goods or services to be provided to other government units on a cost reimbursement basis.

An example of an activity that would NOT normally be accounted for in an enterprise fund would be:

centralized government motor pool.

Which financial statements are required for a proprietary fund?

Statement of Revenues, Expenses and Changes in Fund Net Position, Statement of Net Position and Statement of Cash Flows

The categories of Net Position for a proprietary fund are classified within which of the following categories?

Net Investment in Capital Assets, Restricted Net Position, and Unrestricted Net Position.

Restricted Net Position for a proprietary fund is:

net resources whose use is restricted by creditors, grantors, or laws or regulations of other governments.

Proprietary funds utilize what basis of accounting?

Accrual

Governmental units use which fund type to account for services provided to the general public on a user-charge basis?

Enterprise fund.

Which of the following is not a Fiduciary Fund?

Permanent Fund.

Which of the following is true regarding Fiduciary Funds?

Both the options are correct.

_____ funds are created when individuals or organizations contribute resources to a trust with the agreement that principal and/or income will be used to benefit individuals or private organizations.

Private-purpose trust

_________ funds are created when individuals or organizations contribute resources with the agreement that the income will be used to benefit the citizenry or the government’s programs.

Permanent

The terms used for classification of items on the Statement of Changes in Fiduciary Net Position are:

additions and Deductions.

A fund that is used to account for assets held by a government temporarily acting as agent for one or more other governments units or for individuals or private organizations is a(n):

Custodial Fund.

A fund that exists when the government is the sponsor of a multi-government investment pool and accounts for the external portion of the trust assets is a(n):

Investment Trust Fund.

A fund that exists when a government is the trustee for a defined benefit pension plan, or a defined contribution pension plan is a(n):

Pension Trust Fund.

Which of the following is not an example of a Custodial Fund by a state government?

Collection of gasoline taxes designated by law for highway improvements

Which of the following is true regarding the financial statements of Fiduciary Funds?

Fiduciary Funds are accounted for using the economic resources measurement focus and accrual basis of accounting.

Which of the following is true regarding Fiduciary Funds?

Private-Purpose Trust Funds account for resources that are administered by a government for the benefit of others, such as a fund held to distribute resources to local not-for-profit charities.

A pension plan that is required to pay out only the amount that has been accumulated for each employee is a _________

Defined Contribution Plan.

Which type of pension plan is required to pay out a certain sum, generally based on a percentage of salary upon retirement and the number of years of service?

Defined Benefit.

Which of the following funds is used to account for the external portion of investment pools without formal trust agreements?

Custodial Fund.

An endowment to support scholarships would most likely be accounted for in which of the following fund types?

Private-Purpose Trust Fund.

Investments in a Private-Purpose Trust Fund should generally be reported using:

Fair Market Value.

Which of the following is false regarding government-wide financial statements?

Worksheet entries are required to change the Enterprise Fund financial statements to the accrual basis of accounting.

With respect to government-wide statement, which of the following statements is correct?

General capital assets should not be reported as assets in Governmental Funds but should be reported in the governmental activities column of the government-wide Statement of Net Position.

Which of the following funds would not be included in the government-wide financial statements?

Private Purpose Trust Fund

Which of the following is true regarding revenue recognition for property taxes, when reporting in the government-wide statements?

Assets are recognized when an enforceable legal claim has arisen or when resources are received, whichever is first

Which of the following items are included in the governmental activities column of the government-wide financial statements through worksheet journal entries?

All of the choices are correct.

Governmental Fund-basis statements are prepared using the _________, and must be converted to the _________ to be incorporated in the government-wide statements.

modified accrual basis, accrual basis

The reconciliations required to be presented on the face of the Governmental Fund financial statements or in separate schedule immediately after the fund financial statements include:

Both of the choices are correct.

Which of the following would not be an adjustment for long-term debt when preparing government-wide financial statements?

Recording the cash received from a debt issue