Multiple Choice Questions
52.Governmental funds include:
A) Special revenue funds
B) Internal service funds
C) Debt service funds
D) A and C
53.The “Hierarchy of GAAP” is established by the:
A)Financial Accounting Standards Board.
B)Federal Accounting Standards Advisory Board
C)Governmental Accounting Standards Board
D)All of the above have established a hierarchy
54.The term “proprietary funds” applies to:
A)all funds that use accrual accounting.
B)enterprise and internal service funds only.
C)enterprise, internal service, and private-purpose trust funds.
D)none of the above answers are correct.
55.The term “fiduciary funds” applies to:
A)enterprise and internal service funds.
B)pension, investment trust and enterprise funds
C)enterprise, internal service, and private-purpose trust funds.
D)none of the above answers are correct.
56.The GASB sets accounting standards for all of the following except:
A)State and local governments
B)Component units owned or controlled by governments
C)Governmentally related not-for-profit universities
D)Nongovernmental not-for-profit hospital
57.Which of the following fund types is present in every general-purpose government?
A) Permanent
B) Special revenue
C) General
D) Capital projects
58.Which of the following is a proprietary fund?
A)Investment trust
B)Permanent
C)Special revenue
D)Internal service
59.Which of the following is
nota fiduciary fund?
A) Agency
B) Permanent
C) Pension trust
D) Private-purpose trust
60.Which of the following is a governmental fund?
A)Agency
B)Enterprise
C)Special revenue
D)Internal service
61.Which of the following is
not
one of the objectives of Federal Financial Reporting, as outlined in SFFAC 1, which was issued by the FASAB?
A)Financial reporting should enable evaluation of the success rate of programs.
B)Financial reporting should enable evaluation of the service efforts, costs and accomplishments of the reporting entity.
C)Financial reporting should reveal whether financial systems and controls are adequate.
D)Financial reporting should demonstrate accountability with regard to raising and expending money.