GASB and FASAB Standards Practice Test

These questions are part of the practice quiz. Start practicing

• Which of the following is not classified as a support activity reported by not-for-profit entities?
• For a purchase order approved under encumbrance accounting in the General Fund, which entry records the encumbrance?
• If a governmental fund issues debt to finance a capital acquisition, how should the proceeds of the debt be recorded in the fund financial statements?
• Capital assets used by governmental funds should be reported in:
• True or False: Fund accounting can provide a good mechanism for facilitating reporting to donors.
• What is a typical purpose of an internal service fund?
• Which of the following would be a component of net position for an enterprise fund?
• Which of the following funds would be most appropriate when accounting for an activity that provides goods or services to the public for a fee that is intended to make the activity self-supporting?
• The liability for general obligation bonds issued for the benefit of a governmentally-owned electric utility and serviced by its earnings should be recorded in:
• When a snowplow is purchased by a government, how should it be recorded in the governmental activities general journal?
• Which statement regarding capital assets is not true?
• The Encumbrances control account is decreased when:
• Which of the following accounts is a budgetary account of a governmental fund?
• Depreciation is not recorded in which fund?
• If a state law requires that local governments prepare General Fund and special revenue fund budgets on a basis that differs from GAAP, how should the budgetary comparison schedule be prepared?
• In the governmental activities journal, which entry would NOT be included when disposing of equipment?
• In the Acme Construction scenario, construction expenditures should be debited when:
• The city amended its budget to increase grant revenues and increase expenditures by the same amount. The correct budget-amendment journal entry effect is:
• Which statement is true regarding the required disclosure of budgetary information?
• Which basis of accounting is used for the General Fund in this framework?
• Which asset would be reported on the governmental funds balance sheet as a typical current asset?
• The statistical section of the ACFR includes information intended to help users assess:
• In government accounting, the premium on a bond issue for a capital project is typically treated as:
• At the inception of a lease for equipment, the capital projects fund entry will include which of the following?
• In government-wide financial statements, an asset purchased by a department with general revenues is reported where?
• Which of the following should be accounted for in an internal service fund?
• Cash dedicated by the federal government for highway maintenance would be carried in which fund?
• Internal service funds may be used if:
• Where would the $5,000,000 endowment principal be recorded?
• The Central City Golf Course, an enterprise fund, purchased a new stove for use in the course's snack shop. The debit for the entry to record the purchase should be to:
• Which activity would most likely not be accounted for by an internal service fund?
• The Expenditures control account of a government is debited when which event occurs?
• Which of the following would not be provided by management's discussion and analysis (MD&A)?
• In the government-wide statement of activities, which is a required program revenue category?
• Which of the following statements reflects the adopted budget with a credit to Appropriations?
• When goods are received for an encumbrance, which entry closes the encumbrance and records the expenditure?
• Which financial statements are required for a debt service fund?
• The board of directors for a nongovernmental not-for-profit organization decided to designate $20,000 each year for the next three years to fund a special research project it was planning to conduct at the end of the three-year period. How would these board-designated resources be reported on the statement of financial position?
• GASB standards require that governmental fund financial statements include which of the following?
• In the General Fund, which statement most accurately describes reporting of equipment?
• In accounting for state and local governments, the modified accrual basis is required for which funds?
• Upon issuance of bonds at a premium, how will the premium be recorded?
• Which of the following may properly be reported as a component of net position in the proprietary fund statement of net position?
• Which of the following is a difference between enterprise funds and internal service funds?
• In the current year, the not-for-profit organization Save the Butterflies Foundation received cash of $500 to be used as the Foundation wishes and $1,000 to be used for butterfly research. Save the Butterflies Foundation also received pledges of $700 that it can use as it wishes and $600 for its building fund. All pledges are expected to be received next year. How much would Save the Butterflies report as contributions with donor restrictions in the current year?
• Under FASB standards, when would a conditional pledge be recognized?
• What is the process by which a legal valuation is placed on taxable property called?
• Which of the following asset amounts would be classified as restricted fund balance on the governmental funds balance sheet?
• During the year a donor pledged $2,000,000 in funds to a not-for-profit private charter school. The school will receive the pledge if it is able to raise an additional $2,000,000 in matching funds over the next three years. According to the FASB, how would this pledge be recorded?
• In the Town of Clementville, which assets are included in capital assets for governmental activities?
• Which of the following is one of the three sections of an annual comprehensive financial report?
• If state law requires that local governments prepare budgets on a basis that differs from GAAP, the budgetary comparison schedule should
• A local philanthropist made an unconditional pledge to donate $100,000 to a not-for-profit organization to be paid in five equal installments of $20,000 beginning in two years. Under FASB standards the pledge would be recognized as:
• On March 2, 2027, 20-year, 3 percent, general obligation serial bonds were issued at the face amount of $3,000,000. Interest of 3 percent per annum is due semiannually on March 1 and September 1. The first payment of $150,000 for redemption of principal is due on March 1, 2028. Fiscal year-end occurs on December 31. What is the interest expense in the governmental activities accounts for the fiscal year ending December 31, 2027?
• Under FASB standards, how would a not-for-profit organization recognize a conditional pledge?
• In the City of Falmouth bonds example, what is the term of the bonds?
• The report that provides condensed financial information, budget summaries, and narrative descriptions is called a(an)?
• Which item would properly be reported in the operating statement of a governmental fund?
• When the debt service fund makes a payment of principal and interest on an outstanding long-term debt, the governmental activities accounts:
• In Cambridge County's Wastewater Enterprise Fund, which amount should be reported as cash flows from investing activities?
• Which fund is typically used to accumulate resources to retire term bonds?
• Revenues that are legally restricted for expenditure on specified operating purposes that should be accounted for in special revenue funds include which of the following?
• Encumbrances accounting ensures that budgetary control is maintained; which statement is true about encumbrances?
• Which of the following should be accounted for in an enterprise fund?
• Which would always be classified as a general revenue?
• Which describes the proper treatment for uncollectible taxes?
• Which activity would most likely be accounted for in an enterprise fund rather than an internal service fund?
• If the Town of Orleans purchased a truck for the parks department, and the parks department's operations are financed by general revenues, where would the capital asset be recorded?
• Debt service funds are used to account for which of the following?
• Which fund should be used if resources provided by a federal grant must be set aside and used for counseling youthful offenders?
• Under budgetary accounting, when a government uses the budgetary basis, what is the effect on the reported actual amounts in the budgetary comparison schedule?
• The voters of the city passed an ordinance to increase their sales tax by ¼ percent. The proceeds of the sales tax are to be used for culture and recreation. In the governmental activities journal, how would the ¼ percent sales tax revenue be recorded?
• Which fund would be used to account for resources provided by a federal grant that must be set aside for a specific program?
• Which entries correctly record the purchase of six computers using General Fund resources in the General Fund and in the Governmental Activities column?
• Which of the following is a fiduciary fund?
• An example of an increase in net assets that would be labeled revenue rather than support is:
• If Parks Department is a governmental fund, which account should the Parks Department use to record billings from the central motor pool's internal service fund?
• January 2027, supplies ordered in the previous year encumbered at 2,000 and received at 2,200. The entry to record this transaction will require a debit to Expenditures—2027 in the amount of 200.
• The acquisition value of the donated building at the date of the gift was which amount?
• In the reconciliation process which of the following would be added to the net change in fund balances to arrive at the change in net position of governmental activities?
• Which statement about the budget is true?
• Which two statements comprise the government-wide financial statements under GASB?
• Under the modified accrual basis of accounting, expenditures are generally recognized when:
• When a supplies internal service fund records a billing to the General Fund, the journal entry in the internal service fund will include which of the following?
• Which of the following statements about recognizing a conditional pledge under FASB is correct?
• Which statement accurately describes the measurement focus and basis of accounting most unlike those used by business entities?
• The snowplow should be recorded in the General Fund at what amount?
• Which of the following could not be reported on the General Fund balance sheet?
• Which characteristic indicates an entity is a government rather than a not-for-profit?
• The Estimated Revenues control account is credited when revenues are recorded. Which option best reflects this statement?
• The issuance of tax anticipation notes would include which of the following entries with a credit to Tax Anticipation Notes Payable?
• Simple City's General Fund expenditures included Computer for the city treasurer's office $6,000; Furniture for the mayor's office $20,000. How much should be classified as capital assets in Simple City's government-wide statement of net position at June 30?
• Which of the following funds of a government uses the same basis of accounting as a proprietary fund?
• Receivables for completed sidewalks financed by special assessment bonds with no city liability should be reported as assets in government-wide statements. Which option describes this correctly?
• Which statement is true about internal service funds?
• On March 2, 2027, 20-year, 3 percent, general obligation serial bonds were issued at the face amount of $3,000,000. Interest of 3 percent per annum is due semiannually on March 1 and September 1. The first payment of $150,000 for redemption of principal is due on March 1, 2028. Fiscal year-end occurs on December 31. What is the interest expenditure in the governmental funds for the fiscal year ending December 31, 2027?
• When the budget is adopted and Estimated Revenues exceed Appropriations, the excess is recorded as:
• What is typically the first action in the General Fund purchasing process?
• Which of the following is presented as a nonspendable fund balance category?
• A transfer from the General Fund to the Capital Projects Fund to partially finance a capital project would be recorded by the Capital Projects Fund as which of the following?
• How does FASB require not-for-profit organizations to report expenses?
• The governmental funds operating statement presents all of the following except
• Special assessments levied for debt service of bonds issued for a special assessment capital project will be accounted for by a debt service fund under which situation?
• Net assets with donor restrictions are released when:
• Which of the following statements is not true for debt service funds?
• In governmental accounting, the cost to purchase a good or service is defined as which term?
• If a capital project is financed by general obligation bonds, the proceeds are typically recorded in which fund?
• Which of the following is not one of the criteria specified in the FASB Codification for determining whether joint costs with a fundraising appeal can be reported with program expenses rather than as fundraising expenses?
• The statistical section of the CAFR includes:
• When the budgetary fund balance shows appropriations exceeding estimated revenues, how is it recorded?
• Which statement best describes how interest incurred during construction should be treated in the Brown Creek scenario?
• Which fund would a water utility that serves the general public on a user-charge basis be recorded in?
• The city's electric utility fund sent $1,000,000 to the General Fund to help cover the city's operating costs. This transaction would be recorded in the governmental activities journal as
• Which debt service fund would normally have the largest balance in its Fund Balance account?
• Term bonds issued for building construction and maturing in ten years are typically retired from which fund?
• To offset engineering and design costs incurred prior to the issuance of a long-term bond issue, a capital projects fund borrowed the sum of $75,000 on a short-term basis from First National Bank. This transaction should be recorded in:
• When should Construction Expenditures be debited for a progress bill approved for payment?
• Where should infrastructure assets and long-term liabilities issued to finance the general government's infrastructure be reported?
• If a not-for-profit incurs $200,000 in management and general expenses, how should these be reported when expenses are allocated by function?
• In the current year, the not-for-profit organization How to Read Government Financial Reports received both cash of $1,250 and pledges of $2,000 to be used for teaching citizens how to read government financial reports. During the year the organization spent $1,750 teaching citizens to read financial statements. Assuming the NFP has a policy of spending its restricted resources first, in the current year what amount of contributions can be reclassified as without donor restrictions?
• Which account would be credited in the internal service fund when funds are transferred in from another fund for interfund purposes?
• Under GASB standards, an internal service fund should prepare all of the following financial statements except a:
• Under modified accrual accounting, revenues are recognized when
• Where and how should capital assets used by an enterprise fund be reported?
• The town swimming pool is described as being supported by user fees. Which statement is true?
• In accordance with FASB standards, securities donated to a not-for-profit organization should be recorded at the:
• The journal entry to record the General Fund budget will include which of the following?
• When a nongovernmental not-for-profit organization spends money for the purpose of which an external donor intended, the expense is reported as a:
• Which describes the typical order of steps in the acquisition of goods and services by an activity in the General Fund?
• Which classification does the expenditure item 'Public Safety' belong to in governmental accounting?
• The City of the parks department uses general revenues for operations. An asset would be recorded in which journals?
• Depreciation expense in a not-for-profit organization should be:
• GASB standards apply to which of the following types of governments?
• Which expense category would typically be used to classify expenses that are related to delivering program services?
• In the City of Falmouth bonds example, which is the first interest payment date?
• Which section of the annual comprehensive financial report presents tables and charts showing social and economic data in addition to financial trends, fiscal capacity, and operating information of the government?
• In government-wide statements, an asset such as a city hall building that is used by governmental activities would appear where?
• Earnings on permanent fund assets are used to support a specific function; how would these earnings be recorded?
• Which fund would typically record the payments for both principal and interest on long-term debt?
• Which description best matches the Expenditures—2026 account?
• In the statement of cash flows for an enterprise fund, which activity would include proceeds from sale of revenue bonds for construction?
• Which group is identified as a primary user of state or local government's general-purpose external financial statements?
• Which reporting approach by function and nature is recommended for expenses?
• Which fund type uses the current financial resources measurement focus and modified accrual basis of accounting?
• Which transaction is classified as an exchange transaction?
• Which of the following transactions is an exchange transaction?
• Which of the following is a net asset category reported by not-for-profit entities?
• In which fund balance category would cash restricted by grant agreements be reported?
• Which statement reflects the timing of recognizing conditional pledges under FASB?
• Which amount is recorded in the General Fund for the snowplow lease at inception?
• Which set of items contribute to the $527,500 total general capital assets?
• Which of the following statements is true?
• Based on the asset amounts provided, should either the Development Special Revenue Fund or the Debt Service Fund be reported as major funds?
• Which fund type would contain an enterprise fund and an internal service fund?
• Under FASB, how should unrealized gains on the investment portfolio of a not-for-profit organization be recognized?
• Under FASB standards, how would a not-for-profit recognize a conditional pledge?
• Which characteristic can be used to distinguish a nongovernmental not-for-profit from a governmental not-for-profit?
• Which of the following is not one of the seven elements defined by the GASB concept statements?
• In the Brown Creek scenario, which amount is capitalized as part of the construction cost in government-wide statements?
• A local CPA volunteered time to prepare Form 990 for an after-school development organization. If the services had not been donated, the organization would have had to hire a CPA to prepare the return. In accordance with the FASB Codification, the value of the CPA's time devoted to helping the organization should be recorded as:
• A not-for-profit organization that follows FASB standards must display the changes in all classes of net assets on which of the following statements?
• The Encumbrances account is properly termed a:
• Which statement about fund accounting for not-for-profit organizations is true?
• Which contribution would not have to be reported as an asset on the not-for-profit's balance sheet?
• Which estimation approach would be most useful in estimating the amount of asset impairment that has occurred due to major flooding?
• The FASB Codification requires the following financial statements for all not-for-profit organizations:
• In the government-wide initial recognition of a leased asset, the asset equals the sum of the present value of lease payments and the down payment.
• A city received resources that the state indicates can only be used for public works projects, such as road construction. Assuming the resources have not been expended by year end, how would the resources the city received be shown in the city's fund balances?
• In the Thistlewood balances, which amount represents the general capital assets total?
• Under which basis of accounting for a government should revenues be recognized in the period when they are measurable and available?
• Which statement best describes a typical use of a capital projects fund?
• Which of the following accounts is not closed at the end of the reporting period?
• A capital projects fund might be used to account for which of the following activities?
• According to GASB, information essential to placing financial information in the correct context should be reported as which of the following?
• In the period, which item would be reported in the governmental fund operating statement?
• The Estimated Revenues control account is used to record:
• In government fund statements, Interfund Transfers In is classified as which type?
• Which statement is correct regarding interest incurred during the period of construction of capital projects?
• In the government-wide financial statements, the donated building should be recorded at what value on the date of receipt, given an acquisition value of $600,000?
• Which of the following statements correctly identifies governmental funds?
• GASB requires a schedule of revenues, expenditures, and changes in fund balances—budget and actual for which funds?
• Which statement describes the differences between governmental funds and business-type entities?
• What is the gain recognized on disposal of equipment in the government-wide statements when the asset cost $40,000, accumulated depreciation $30,000, and it was sold for $15,000?
• Which body has been established to recommend accounting and financial reporting standards for the federal government?
• The government-wide financial statements consist of which two reports?
• Which of the following would typically not be included in the introductory section of an annual comprehensive financial report?
• What is the amount of the first principal redemption for the March 2, 2027 bonds?
• On May 1, the City of Spencer was notified of approval of a $300,000 federal operating grant, payable on a reimbursement basis as the city expends resources. As of May 1, no expenditures had been made. The journal entry to record approval of this grant will include:
• When part of a progress payment for construction is withheld until final settlement of the contract, what account is credited?
• Which of the following is not a required disclosure about each major class of capital assets?
• Which fund balance classification is the residual category for unspent resources not classified as restricted, committed, or assigned?
• For which type of nonexchange transactions are revenues recognized when all eligibility requirements are met?
• In encumbrances accounting, when is the encumbrances control account decreased?
• Which of the following items would not appear in a statement of revenues, expenditures, and changes in fund balances prepared for a governmental fund?
• Under the modified accrual basis, which statement best describes when expenditures are recognized?
• What is the amount added to capital assets in 2028 for the Sunset project?
• How is the premium on bonds payable treated in governmental activities?
• In the General Fund's books, a transfer received from another fund to support operating costs would be recorded as?
• Which of the following governmental funds must be reported as a major fund?
• Supplies recorded in the General Fund under the purchases method will initially include a debit to which account?
• Supplies recorded in the General Fund under the consumption method will initially include a debit to which account?
• Internal service funds are generally reported in government-wide financial statements in which column?
• In government-wide financial statements, internal service funds are generally reported in which column?
• Which situation best describes an exchange transaction?
• Which of the following would be considered a general capital asset?
• Which of the following is a primary objective of financial reporting by state and local governments?
• Under the modified accrual basis used by the General Fund, financial resources are considered available if the revenue or other financing source is expected to be collected:
• Retention amount on the Acme Construction bill equals 10% of 1,200,000. How much is withheld as retention?
• When the General Fund records a billing from an internal service fund, the journal entry will include which of the following?
• In the government-wide statements, the initial recognition of a lease for a capital asset involves which of the following?
• The City of Cinnamon Hill operates a central motor pool as an internal service fund for the benefit of the city's other funds and departments. In the current year, this fund charged the Parks Department $30,000 for vehicle rentals. What account should the internal service fund use to record these charges?
• When earnings on permanent fund assets are used to support a city's library, how are those earnings recorded?
• Under GASB, which term represents an inflow of resources?
• Which organization or unit would least likely be accounted for by an enterprise fund?
• The journal entry to record budgeted revenues includes which of the following?
• RSI stands for?
• For recording a donated asset, the acquisition value is based on fair value at donation date.
• The government-wide financial statements primarily report on which concept?
• GASB standards require that general capital assets be recorded in government-wide statements at which cost basis?
• A county adjusts charges for services downward by 100,000 and increases public safety expenditures by 150,000. What is the effect on Budgetary Fund Balance?
• For the six computers example, which accounts are debited and credited in the Governmental Activities column?
• In a governmental fund’s operating statement, which item is typically shown as revenue deferred from prior periods?
• Which of the following would be reflected in the operating statement of a proprietary fund?
• In government budgeting, the Estimated Revenues control account is credited when:
• Which statement best describes the treatment of depreciation in government-wide financial statements compared to governmental funds statements?
• A general capital asset constructed several years ago by a capital projects fund was sold for cash by the General Fund. Entries are necessary in the:
• Which statement best describes a characteristic that differentiates other financing sources from revenues in governmental funds?
• The premium on bonds issued for a capital project is typically recorded as:
• Which condition is true at year end when there are net revenues (revenues exceed expenditures) and no other financing sources or uses?
• The liability for special assessment bonds that carry a secondary pledge of a city's general credit should be reported in the balance sheets of:
• The sale of revenue bonds by a water utility fund would be recorded in which fund and as what?
• Property taxes due and collectible 90 days after the fiscal year end would be recorded as revenues in 2027 in which journal?
• In GASB reporting, nonmajor funds are presented in fund financial statements in what manner?
• The General Fund used electricity provided by the city-owned electric utility (an enterprise fund of the city). The General Fund general journal entry to record the transaction will include:
• Meter deposits restricted cash is classified in which fund type?
• In the Special Revenue Fund, which of the following would be included in the journal entry for the sale of equipment originally costing $40,000 with $30,000 accumulated depreciation, sold for $15,000?
• Which of the following will increase the fund balance of a government at the end of the fiscal year?
• Which asset would not be found in the balance sheet of a debt service fund?
• Which component of net position represents resources that are not subject to external assertions or constraints?
• Net position in proprietary funds is typically reported in which form?
• When equipment that is to be used by the General Fund is received, how should it be recorded at the fund level?
• Which fund type would typically be used to account for construction of a major public facility?
• The governmental activities journal entry to record the use of water provided by the city-owned water department (an enterprise fund) will include which debit?
• When computers are ordered by the mayor's office, the purchase order should be recorded in the General Fund as a debit to which account?
• Which of the following items should be accounted for in an enterprise fund?
• Which statement about debt service funds is true?
• An internal service fund normally uses which of the following budgetary accounts?
• Which option correctly describes the budgetary entry to record the budget?
• Which of the following is not a category found in the statistical section of the annual comprehensive financial report (ACFR)?
• According to the FASB Codification, which of the following is a condition that must be met for contributed services to a not-for-profit organization (NFP) to be recorded as both a contribution and as an expense?
• Under GASB standards, nonmajor funds are reported in which format within fund financial statements?
• Which asset would appropriately be reported on the governmental funds balance sheet?
• The ACFR should contain a statement of revenues, expenses, and changes in net position for which funds?
• For a storage facility constructed with city personnel and financing with short-term notes, what amount should be capitalized in government-wide statements?
• The budgeted excess of estimated revenues over appropriations will be recorded as which of the following?
• Which of the following statements concerning the reporting of internal balances by a government at the end of its fiscal year is true?
• Which item among the given data is a general capital asset?
• In government-wide financial statements, internal service funds are usually reported as part of governmental activities, unless they predominantly serve enterprise funds. If they predominantly serve enterprise funds, they are reported as:
• Which financial statement reports both current and noncurrent assets and liabilities?
• Which of the following statements is prepared by all not-for-profit organizations?
• In the Town of Clementville, the following general capital assets were owned: Town buildings 3,250,000; Intangible assets 1,000,000; Streets, sidewalks, and water lines 2,000,000. What amount should be recorded as capital assets in the town's governmental activities?
• The annual comprehensive financial report (ACFR) should include a statement of revenues, expenses, and changes in fund net position for which fund type?
• According to the GASB, information essential to placing financial information in the correct context should be reported as which?
• Which of the following statements concerning the reporting of expenses on the statement of activities is true?
• The General Fund has transferred cash to the appropriate fund for eventual retirement of term bonds issued for building construction and maturing in 10 years. Which funds would record this transaction?
• Under modified accrual accounting, availability means resources are expected to be collected within the current period or soon after year-end to pay current obligations. Which option correctly states this?
• The General Fund of the Town of Mashpee transfers $115,000 to the debt service fund for a $100,000 bond principal and $15,000 interest payment. Subsequent payment of the principal and interest would include:
• When utility customers are billed during the year, the enterprise fund journal entry will include which of the following?
• A liability is recorded in governmental funds when:
• How should financial information for internal service funds be reported in the government-wide financial statements?
• Which of the following is not true for capital projects funds?
• Which of the following statements would be classified as a donation with donor restrictions when a building fund is restricted and pledges are expected next year?
• When Capitol City makes its annual lease payment on an unpaid lease obligation, the journal entry for the debt service fund accounts will include:
• Not-for-profit entities report which of the following as a net asset category?
• The Appropriations account of a governmental fund is credited when:
• The General Fund transfers $115,000 to the debt service fund for a $100,000 principal and $15,000 interest payment. The recording would include:
• An ACFR prepared in conformity with GASB recommendations includes which combination of sections?
• Which standard-setting bodies require a management's discussion and analysis as part of the financial report?
• Which statement is true regarding other financing sources and other financing uses?
• If supplies that were ordered by a department financed by the General Fund are received at an actual price that is less than the estimated price on the purchase order, the department's available balance of appropriations for supplies will be:
• Essex Village's capital expenditures included Equipment for village mayor's office $40,000 and Village vehicles $60,000. What amounts should have been recorded in the General Fund and the governmental activities journal for the increase in the equipment account?
• The expenditure classification "City Attorney" is an example of which type of classification?
• When a donor-imposed restriction is satisfied, the related net assets are released from restrictions:
• A government received half of a $500,000 federal operating grant on December 1 of year one for year two. Which entry best records receipt of the grant funds?
• The budgeted excess of estimated revenues over appropriations is recorded as a credit to which account?
• The following cash transactions were among those reported by Cambridge County's Wastewater Enterprise Fund for the year: Proceeds from sale of revenue bonds for construction $5,000,000; Interest income $300,000; Capital contributed by developers $1,000,000. In the Wastewater Enterprise Fund's statement of cash flows for the year ended December 31, what amount should be reported as cash flows from capital and related financing activities?
• In the Acme Construction progress billing scenario, what amount should be debited to Construction Expenditures?
• Which of the following would not be classified as a support expense by the not-for-profit organization Save Our Lakes?
• Which of the following is evidence of fiscal independence for the purpose of considering whether one legally separate organization is a component unit of another?
• When the debt service fund makes a lease payment on an unpaid lease obligation, which expenditure category is debited?
• Which item would appear on a governmental funds balance sheet?
• Which statement best describes fund accounting for not-for-profit organizations?
• Which statement about the Encumbrances Outstanding account is accurate when a purchase order is approved?
• Which basic financial statements can contain a column for debt service funds?
• When a fire truck purchased from General Fund revenues is received, which General Fund account should be debited?
• Which statement is NOT typically prepared by an internal service fund under GASB?
• Which of the following would not be reported as an asset on the financial statements under FASB?
• In the government-wide statement, program revenues are subtracted from expenses to determine the net position change. Which option expresses this relationship?
• In governmental accounting, which event would trigger a debit to the Expenditures control account?
• Which statement best describes recognizing conditional pledges under FASB?
• The town received a $5,000,000 endowment, the terms of which indicate that earnings on the endowment are to be used by health and welfare to provide vaccines to all citizens that are interested. Where would the $5,000,000 be recorded?
• Under FASB guidance, not-for-profit organizations must show the relationship of functional expenses to natural classifications in what format?
• Premiums received on tax-supported bonds are generally transferred to which fund?
• What constitutes the basic financial statements of a government?
• Which activity would normally not be accounted for in a capital projects fund?
• The expenditure classification 'Public Safety' is an example of which type of classification?
• Which of the following describes the item GASB uses to supplement basic financial statements and help place them in context?
• When a new utility customer submits a deposit, the enterprise fund journal entry will include which of the following?
• For the City of Falmouth bonds, when are the semiannual interest payments due?
• Which item would not be included within the financial section of the ACFR?
• Which would be considered an internal exchange transaction?
• Transfers from the General Fund to the Capital Projects Fund to partially finance a capital project would be reported by the Capital Projects Fund as which of the following?
• The popular report is primarily intended to provide what to the public?
• Which of the following would be reported as an Asset with Restrictions on Use?
• At inception of a lease for equipment, the capital projects fund would record which of the following as a credit?
• Which of the following funds are proprietary funds?
• Under FASB, a large cash contribution intended for the acquisition of a new building would be reported on the statement of cash flows as:
• In 2027, Sunset City signed a contract in the amount of $8,000,000 for the construction of a new city hall. Expenditures were $4,000,000 in 2027 and $2,050,000 in 2028, which included a change to the original construction design in the amount of $50,000. What amount should be added to capital assets in the governmental activities accounts in 2028?
• In the reconciliation process from fund balances to the net position of governmental activities, which item would be added?
• When the budget for the General Fund is recorded, the required journal entry will include which of the following?
• Premiums on tax-supported bonds are typically transferred to which fund to cover debt service?
• Under FASB standards, how would a not-for-profit treat a conditional pledge?
• During the year, a local merchant donated a building to the City of Stage Coach. The acquisition value of the donation at the date of the gift was $600,000. At what amount should this contribution be recorded in the governmental activities accounts at the government-wide level?
• Which statement displays the changes in all classes of net assets?
• The City of Apple Creek issued bonds at par for a construction project. Receipt of the bond proceeds would be recorded in which funds?
• Which of the following would be considered an internal exchange transaction in interfund dealings?
• Which are government-wide financial statements required by GASB standards?
• Which of the following circumstances would indicate that a potential component unit should be included as a component unit of the government financial reporting entity?
• Under FASB, a pledged but unconditional contribution from donor restrictions would be recognized as what at pledge date?
• Which statements concerning interfund transfers is true?
• Typically, proceeds from general obligation bonds will be recorded in the:
• A debt service fund is a:
• In government-wide statements, capital assets are reported in which part of the statements?
• Which scenario demonstrates GAAP criteria for defining the reporting entity in the library example?
• When a city donor donates a building to the city, what amount should be recorded for this donated property in the General Fund?
• The Expenditures control account of a government is credited when:
• When bonds are sold at a premium for a capital project, the premium amount generally:
• Which of the following is generally not an expense allocated to a government function or program?
• Which statement is always true concerning the reporting of debt service funds?
• Which timing statement about conditional pledges aligns with FASB guidance?
• Which of the following is true regarding capital projects funds?
• Which statement about the governmental fund statement of revenues, expenditures, and changes in fund balances is true?
• Which of the following is a fiduciary fund?
• Which fund balance classification requires formal action by the government's highest decision-making authority to be established?
• If the parks department's operations are financed by general revenues, an asset would be recorded in which journal(s)?
• In fiscal year 2027 the Expenditures—2026 account represents
• According to GASB, which represents an inflow of resources?
• According to FASB, the account 'Provision for Uncollectible Pledges' by a not-for-profit arts organization would be reported as which of the following?
• In a governmental fund, recording a property tax levy with an estimated 1% uncollectible, which of the following would be credited to Revenues?
• Which basis of accounting is appropriate for enterprise funds and internal service funds?
• Under FASB standards, when does a not-for-profit recognize a conditional pledge?
• Which account would not be closed at the end of each fiscal year?
• If a general capital asset constructed by a capital projects fund is sold by the General Fund, which funds require entries?
• The account Interfund Transfers In would be classified in a General Fund statement of revenues, expenditures, and changes in fund balances as a(an):
• Which policy statement is true regarding how a not-for-profit should handle spending restricted resources when a mix of restricted and unrestricted funds is available?
• Which statement best describes the recommended format for the government-wide statement of activities?
• In the government-wide statement of net position, the snowplow lease is recorded at what amount at inception?
• On the due date for a bond interest and principal payment, the debt service fund journal entry (or entries) will include:
• The requirement to be publicly accountable for laws and regulations related to spending tax revenues relates to which of the four objectives?
• An annual comprehensive financial report prepared in conformity with GASB recommendations should include which sections?
• Which concept is identified by FASAB as the foundation for federal financial reporting?
• From the items listed, which amount should be accounted for in a special revenue fund?
• On June 1, Brooksville levied special assessments totaling $500,000 payable in 10 equal installments beginning June 30. In the debt service fund's June 1 entry, which of the following would be recorded?
• Which condition would require a credit to Fund Balance—Unassigned of a governmental fund when operating statement accounts are closed at year end, assuming there are no other financing sources or uses?
• In government-wide statements, an asset appears only in Governmental Activities. Which option reflects this statement?
• Which is not a requirement to elect the modified approach to reporting eligible infrastructure assets?
• City of Falmouth: On Oct 1, 2027 issued $1,000,000 of 3%, 10-year term bonds with semiannual interest payments due on Apr 1 and Oct 1 each year, beginning Apr 1, 2028. What amount of expense should the city recognize in its governmental activities journal for the years 2027 and 2028?
• Which of the following would be reported on the operating statement of a governmental fund?
• The receipt of equipment that had previously been ordered should be recorded in the General Fund as a debit to which account?
• Culture and recreation is a core government function in governmental accounting. Which option below best represents that concept?
• Which of the following is not listed by GASB Concepts Statement 3 as a method for communicating information to external users?
• At inception of a lease for a general capital asset, how should the lease be reflected in the governmental activities accounts?
• The liability for general obligation bonds should be recorded in the:
• Which statement best describes the objective of GASB financial reporting?
• Which of the following general journal entries would correctly record the property tax levy?
• In late April, the Acme Construction Company submitted a $1,200,000 progress billing on a construction contract. On May 2, the bill was approved for payment, subject to a ten percent retention, as provided by the contract. The amount that should be debited to Construction Expenditures is:
• Which item is typically included in the introductory section of an annual comprehensive financial report?
• The purpose of interfund activity reporting is to show:
• If an asset impairment is recorded for a public works facility, which entry is correct in the governmental activities accounts?
• When a new internal service fund is established with a transfer of funds (not to be repaid), which account would be credited in the internal service fund?
• Which item would be reported as a nonspendable fund balance?
• In what fund would the activities of a water utility department, which offers its services to the general public on a user charge basis be recorded?
• For which of the following types of nonexchange transactions are revenues recognized when all the eligibility requirements are met?
• Upon issuance of bonds at a premium, the debt service fund recognizes the premium as which entry?
• Which of the following is true about contributed securities donated to not-for-profit organizations?
• Which would decrease the governmental activities balance in Net Position—Net Investment in Capital Assets?
• If an internal service fund predominantly serves enterprise funds, in government-wide statements, it is reported as part of:
• Financial resources set aside to pay principal and interest on general long-term debt may be accounted for in which of the following fund types?
• Which of the following is not true regarding proprietary funds?
• Which statement is correct regarding depreciation?
• Which of the following would be donor-restricted net asset category?
• Which of the following is a true statement regarding in-substance defeasance of bonds?
• In not-for-profit financial reporting, fund accounting primarily serves to support what purpose?
• Bond anticipation notes can be reported as short-term liabilities in the governmental fund financial statements.
• Under FASB, which of the following would be considered contribution revenue or support for a not-for-profit?
• Which of the following is a minimum requirement for general purpose external financial reporting by governments?
• Which fund balance classification represents amounts for which constraints have been placed by the government's highest decision-making authority?
• Which statement best describes where capital contributions from developers should be reported in an enterprise fund's cash flows?
• On the statement of revenues, expenditures, and changes in fund balance for governmental funds, how are capital outlays reported?
• Which fund type is associated with proprietary funds in government accounting?
• In the encumbrance cycle, after the purchase is delivered, the correct action is to:
• On May 1, a federal operating grant is approved but expenditures have not yet occurred; which entry is recorded on May 1?
• In the reconciliation from fund balances to the change in net position of governmental activities, which item would be added to net change in fund balances?
• Governments can opt not to capitalize collections or individual works of art or historical treasures if the collection is:
• Capital assets funded by general revenues are recorded in which statements?
• Which of the following statements would correctly describe what appears on an enterprise fund balance sheet?
• Which of the following would be accounted for in the Capital Projects Fund?
• Unusual and infrequent items are reported on the government-wide statement of activities as which?
• The City of Walnut Creek uses encumbrance accounting and its fiscal year ends on June 30. On May 6, a purchase order was approved and issued for supplies in the amount of $6,000. Walnut Creek received these supplies on June 2, and the $6,000 invoice was approved for payment. What General Fund journal entry or entries should Walnut Creek make on June 2, upon receipt of the supplies and approval of the invoice?
• Which of the following activities would normally not be accounted for in a capital projects fund?
• Which account is credited when a purchase order is approved?
• Which funds are governmental funds?
• Recognizing revenues when measurable and available for paying current obligations and expenditures when incurred describes which basis of accounting?
• Which of the following is not a category of program revenue reported on the statement of activities at the government-wide level?
• Which of the following is not an objective of financial reporting by state and local governments?
• When equipment is ordered by a department, the General Fund recording should debit which budgetary account?
• The debt limit represents:
• Which activity is considered a core or main activity of government?
• The Governmental Accounting Standards Board sets standards for which entities?
• Which financial statement shows changes in net assets for the year in a not-for-profit organization?
• What is the book value of the equipment just before sale?
• Which statement best describes the calculation for change in net position on the government-wide statement of activities?
• At the end of 2027 the General Fund had encumbrances of $500 that remained open into 2028. In 2028, the encumbered goods were received at an invoiced cost of $520. What is recorded as the 2028 expenditure?
• Depreciation of capital assets would not be appropriate to record in which fund?
• Based on GAAP criteria for defining the reporting entity, the library is what?
• Which of the following would be considered contribution revenue or support under FASB?
• Town of Brewster issued the following during the year: 1) $600,000 in bonds for installation of new street lights in the downtown corridor, and 2) $800,000 in bonds for construction of a public golf course to be self-supported from fees collected from golf course users. How much should be accounted for through debt service funds for payments of principal over the life of the bonds?
• Under the modified accrual basis, which statement about expenditures is correct?
• The City of Falmouth’s fiscal year ends on December 31. On October 1, 2027, the city issued $1,000,000 of 3%, 10-year term bonds with semiannual interest payments due on April 1 and October 1 each year, beginning on April 1, 2028. What amount of expenditures should the city recognize in its debt service fund for the years 2027 and 2028?
• How should a lease for a general capital asset be recorded in the General Fund accounts at the inception of the lease?
• Which statement best describes fund accounting for not-for-profit organizations?
• For what funds do budgetary comparisons need to be presented in connection with the basic financial statements?
• Which entry would be used to record bond interest on the due date in the debt service fund?
• Which financial statement would you consult to compare current and noncurrent assets and liabilities across all government activities?
• The expenditure classification "Current Expenditures" is an example of which type of classification?
• Which statement is true about debt service fund reporting in government-wide statements?
• Which statement category best describes board-designated resources for a not-for-profit following FASB standards?
• When an interfund transfer is received by the debt service fund, it is recorded as:
• Which items are typically reported differently between the governmental fund statements and the Governmental Activities column of the government-wide statements?
• Which fund type would record charges to other funds for services provided?
• Which statement best describes the purpose of the statement of activities in not-for-profit financial reporting?
• Which of the following would not appear on a governmental funds balance sheet?
• Which statement is true about fund accounting and donor reporting for not-for-profit organizations?
• Which of the following properly portrays the components of net position for proprietary funds?
• Which group is a primary user of a state or local government's general-purpose external financial statements?
• Which statement describes how capital assets used by an enterprise fund should be reported?
• In an interfund billing, the internal service fund would show a receivable labeled Due From General Fund. In which fund would this receivable exist?
• Which of the following would increase the governmental activities balance in Net Position—Net Investment in Capital Assets?
• When Capitol City makes its annual lease payment on an unpaid lease obligation, the journal entry for the governmental activities accounts will include: