1. Which standard issued by the Governmental Accounting Standards Board in 1999 requires two distinct sets of financial statements for state and local governments?
A) GASB Statement No. 32
B) GASB Statement No. 33
C) GASB Statement No. 34
D) GASB Statement No. 35
E) GASB Statement No. 36
2. Which group of governmental financial statements reports all revenues and all costs of providing services each year?
A) GAAP-Based Financial Statements
B) Fund-Based Financial Statements
C) Cost-Based Financial Statements
D) Government-Wide Financial Statements
E) General Fund Financial Statements
3. Proprietary funds are
A) Funds used to account for the activities of a government that are carried out primarily to provide services to citizens
B) Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations
C) Funds used to account for monies held by the government in a trustee capacity
D) Funds used to account for all financial resources except those required to be accounted for in another fund
E) Funds used to account for revenues that have been legally restricted as to expenditure
4. Fiduciary funds are
A) Funds used to account for the activities of a government that are carried out primarily to provide services to citizens
B) Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations
C) Funds used to account for monies held by the government in a trustee capacity
D) Funds used to account for all financial resources except those required to be accounted for in another fund
E) Funds used to account for revenues that have been legally restricted as to expenditure.
5. The term "current financial resources" refers to
A) Those assets that can quickly be converted into cash
B) Monetary assets that are available to meet the government's needs
C) The government's current assets and current liabilities
D) The current value of all net assets owned by the governmental unit
E) Financial resources used to provide electricity to local citizens
6. Which group of financial statements is prepared using the "modified accrual accounting" approach?
A) GAAP-Based Financial Statements
B) Fund-Based Financial Statements
C) Cost-Based Financial Statements
D) Government-Wide Financial Statements
E) General Purpose Financial Statements
7. Under modified accrual accounting, when should an expenditure to recognize interest on long-term debt be recorded?
A) At the end of each accounting period
B) When payment is due within one fiscal year
C) When payment is due
D) When cash is available to pay the interest
E) When the interest is incurred
8. Revenue from property taxes should be recorded in the General Fund
A) when received
B) when there is an enforceable legal claim
C) when they are available for recognition
D) in the period for which they are required or permitted to be used
E) in the period in which the tax bills are mailed
9. A city received a grant of $5,000,000 from a private agency. The money was to be used to build a new city library. In which fund should the money be recorded for the Fund-Based Financial Statements?
A) The General Fund
B) An Expendable Trust Fund
C) A Capital Projects Fund
D) An Agency Fund
E) A Permanent Fund
10. For government-wide financial statements, what account is credited when a piece of equipment is leased on a capital lease?
A) Equipment - Capital Lease
B) Encumbrances - Long Term
C) Encumbrances - Lease Obligations
D) Capital Lease Obligation
E) The lease is not recorded
11. Jones College, a public institution of higher education, must prepare financial statements
A) As if the college was an enterprise fund
B) Following the same rules as state and local governments
C) According to GAAP
D) As if the college was a fiduciary fund
E) In the same manner as private colleges and universities