Multiple Choice Questions
59.The modified accrual basis is a distinct system of accounting that:
A)Differs from accrual accounting only in its failure to recognize long term assets and liabilities.
B)Records expenses and revenues the same as accrual accounting.
C)Records expenditures and fund balances.
D)Is equivalent to cash basis accounting
The Township of Thomasville’s General Fund has the following net resources at year end:
?$77,000 of prepaid insurance
?$375,000 rainy day fund approved by the township governing board with specific conditions for its use
?$2,500 of supplies inventory
?$61,000 state grant for snow removal
?$150,000 contractual obligations for the purchase of equipment
?$200,000 to be used to fund government operations in the future
?Outstanding encumbrance of $80,000 for the purchase of furniture & fixtures (assume no contractual obligation)
60.What would be the total Nonspendable fund balance?
A)$ 2,500
B)$ 77,000
C)$ 79,500
D)$159,500
61.What would be the total Restricted fund balance?
A)$ 61,000
B)$150,000
C)$200,000
D)$375,000
62.What would be the total Committed fund balance?
A)$375,000
B)$290,000
C)$525,000
D)$455,000
63.What would be the total Assigned fund balance?
A)$ 61,000
B)$ 77,000
C)$ 80,000
D)$150,000
64.What would be the total Unassigned fund balance?
A)$ 80,000
B)$200,000
C)$280,000
D)$375,000
65.Which of the following is true with respect to rainy day funds?
A)Rainy day funds are classified as committed if they are created by a resolution or ordinance that identifies the specific circumstances under which the resources may be expended.
B)If rainy day funds are available “in emergencies” or periods of “revenue shortfalls” they are classified as committed.
C)Both A and B.
D)Neither A nor B.
66.A transaction in which a government receives resources without directly giving equal value in exchange is known as a(n):
A) Equity Transaction.
B) Fair Exchange.
C) Non-exchange Transaction.
D) Not Fair Market Exchange transaction.
67.Which of the following is
not
one of the four classes into which nonexchange transactions apply in accordance with GASB Statement No. 33?
A)Voluntary nonexchange transactions.
B)Imposed nonexchange revenues.
C)Derived Tax Revenues.
D)Mandatory exchange transactions.
68.Property Taxes, special assessments, and fines and forfeits are types of nonexchange transactions. These are examples of:
A)Government-mandated nonexchange transactions.
B)Imposed nonexchange transactions.
C)Deferred Inflows.
D)Voluntary nonexchange transactions.