Which of the following groups is considered

Which of the following groups is considered

Subject: Business    / Accounting
Question

Which of the following groups is considered a primary user of a state or local governmentâs general-purpose external financial statements? (Points : 5) Managers and administrators

Employees

Special Interest Groups

Citizens

Question 2. 2.(TCO B) Generally Accepted Accounting Principles (GAAP) applicable to state and local governments require that (Points : 5)

only the government funds and proprietary funds should be established.

only those funds required by law, GASB standards, and sound financial administration should be established.

only those required by law should be established.

All categories of funds must be established.

Question 3. 3.(TCO C) When the budget of a government is recorded and when appropriations exceeds estimated revenues, the budgetary fund balance account is (Points : 5)

credited at the beginning of the year and debited at the end of the year.

credited at the beginning of the year and no entry is made at the end of the year.

debited at the beginning of the year and no entry is made at the end of the year.

debited at the beginning of the year and credited at the end of the year.

Question 4. 4.(TCO D) 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 (Points : 5)

a debit to Due to Other Funds.

a debit to Interfund Transfers Out.

a debit to Expenses.

a debit to Expenditures.

Question 5. 5.(TCO E) The City of Green Hills constructed a new storage facility using the cityâs own public works employees. Construction costs were incurred in the amount of $850,000, plus $30,000 in interest on short-term notes used to finance construction. What amount should be capitalized as a general capital asset? (Points : 5)

$880,000.

$820,000.

$850,000.

$0

Question 6. 6.(TCO E) Which of the following budgetary accounts is typically used by a debt service fund? (Points : 5)

Encumbrances

Encumbrances Outstanding

Estimated Uncollectible Accounts

Appropriations

Question 7. 7.(TCO G) What basis of accounting helps maintain the original principal of a trust? (Points : 5)

Cash basis

Accrual basis

Modified accrual basis

Legal basis

Question 8. 8.(TCO J) Which of the following items are typically reported differently between the governmental fund statements and the governmental activities column of the government-wide statements? (Points : 5)

Inventories

Cash collected on property taxes receivable

Capital outlays

Accounts Payable and other accrued expenses

Question 9. 9.(TCO H) In audits of state and local government units, which of the following paragraphs may not be required in the auditorâs report for every audit? (Points : 5)

Scope paragraph

Explanatory paragraph

Opinion paragraph

Introductory Paragraph

Question 10. 10.(TCO H) Securities donated to a not-for-profit organization should be recorded at the (Points : 5)

donorâs recorded amount.

fair market value at the date of the gift.

fair market value at the date of the gift, or the donorâs recorded amount, whichever is higher.

fair market value at the date of the gift, or the donorâs recorded amount, whichever is lower.

Question 11. 11.(TCO I) How would the estimated uncollectible tuition and fees be reported on the financial statements of a university? (Points : 5)

(A) It would be reported as part of net revenue by a public university.

(B) It would be reported as an operating expense by a public university.

(C) It would be reported as an operating expense by a private university.

Both A and C are the proper recording methods of reporting estimated uncollectible tuition and fees.

Question 12. 12.(TCO I) Charity service and bad debts in a public hospital that follows business-type accounting are (Points : 5)

both reported as deductions from gross patient revenue in arriving at net patient revenue.

both reported as expenses.

reported differently, with charity service reported as a deduction from gross patient revenue and bad debts reported as an expense.

reported differently, with charity service disclosed in the notes to the financial statements and bad debts reported as a deduction from revenue.