76.Which of the following statements is
not
true regarding agency funds?
A)Agency funds use modified accrual accounting.
B)Agency funds report only assets and liabilities; no fund equities, revenues, or expenditures are recorded.
C)Agency funds are reported in the fiduciary funds Statement of Fiduciary Net Position.
D)None of the above; all are true.
77.The tax agency fund of Orange County collected $7,000,000 for a school district, $3,000,000 for the county General Fund, and $5,000,000 for a municipality located in the County. County General Fund employees handle the collections, and a 2.5 percent collection fee is charged all units except the county. The total amount of revenue recognized by the county General Fund would be:
A)$ 390,000.
B)$3,300,000.
C)$3,390,000.
D)$15,300,000.
78.Which of the following statements about agency funds is true?
A)An agency relationship that commonly results in the creation of an agency fund is the collection of taxes and other revenues by an official of one governmental unit for other governmental units.
B)GASB mandates that governments report special assessment resources in an agency fund only if the reporting government has no obligation to assume debt service on special assessment debt in the event property owners' default but merely perform the functions of billing and collecting the special assessments and paying interest and principal on the special assessment debt.
C)Both of the above.
D)Neither of the above.
79.The operations of agency funds will be included in which of the following statements?
A)The fiduciary funds Statement of FiduciaryNet Position
B)The Statement of Changes in Fiduciary Net Position
C)The Government-wide Financial Statements
D)All of the above
80.Agency fund assets and liabilities are to be recognized :
A) At the time the government becomes responsible for the assets.
B) When they are available and measurable.
C) Only in the government-wide financial statements.
D) When the earnings process is complete and collection is reasonably assured.
81.What is the correct journal entry for a Tax Agency Fund to record tax levies of other governments certified to it?
A) Taxes Receivable - Current
Revenues Control
B) Taxes Receivable - Current
Due from Other Governments
C) Taxes Receivable
Transfer Out
D) Taxes Receivable for Other Governments
Due to Other Governments
82.The tax agency fund of Eden County collected $2,000,000 for the Eden School District, $1,000,000 for the Village of Edenton, $1,200,000 for the Eden Park District, and $700,000 for Eden County. County General Fund employees handle the collections, and a 3 percent collection fee is charged all units except the county. The amount to be remitted to the county General Fund would be:
A)$126,000.
B)$147,000.
C)$747,000.
D)$826,000.
83.The City of Sycamore has investments in bonds. These bonds have an amortized cost of $1,996,000. At year end, the financial press reports a market value of $2,002,000 for these bonds. The original cost of the bonds was $1,992,000. The par value at maturity will be $2,000,000. The amount at which the investments would be reported is:
A)$2,002,000
B)$2,000,000
C)$1,996,000
D)$1,992,000
84.Which of the following is true regarding accounting for investments by state and local governmental units?
A)Investments in securities accounted for under the equity method are to be reported at fair value.
B)Realized gains and losses are to be reported separately from unrealized gains and losses in the Statement of Changes in Fiduciary Net Position.
C)Both of the above.
D)Neither A nor B above.
85.The City of Springfield has three pension plans: a locally administered police plan for which it is trustee, a statewide cost sharing plan, and a statewide agency plan. The City would include in its CAFR pension trust fund financial statements for:
A)All three plans.
B)The locally administered plan plus the statewide agency plan.
C)Both statewide plans.
D)The locally administered plan only.