Acc Quiz

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  • Published : June 10, 2012
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Question 1
4 out of 4 points
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| The City of Highland Hills receives a federal grant to assist in nutrition (feeding) programs for senior citizens.   Senior citizens whose income is below a specified amount (the amount was specified by the Federal government) are eligible to participate in the program.  Monthly checks of $100 (this amount was specified by the Federal government) will be mailed to eligible senior citizens.  The proceeds of this grant should be accounted for in which of the following funds of the City?Answer | | | | | Selected Answer:|    Agency Fund.|

Correct Answer:|    Agency Fund.|
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Question 2
4 out of 4 points
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| At the beginning of the year, the permanent fund of  Rapid City had an investment portfolio with a historical cost of $200,000 and a fair value of $220,000.  There were no purchases or sales of securities during the year.  At year end the portfolio had a fair value of $240,000.  At the end of the year Rapid City will account for this increase in fair value in which of the following ways?Answer | | | | | Selected Answer:|    Credit Investment Income, $20,000.| Correct Answer:|    Credit Investment Income, $20,000.|

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Question 3
4 out of 4 points
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| The Schedule of Changes in Long-Term Obligations contains an account Net Pension Obligation.  Which of the following describes the event that gave rise to this account?Answer | | | | | Selected Answer:|    The actual contribution by a governmental fund was less than the actuarially required contribution.| Correct Answer:|    The actual contribution by a governmental fund was less than the actuarially required contribution.|

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Question 4
4 out of 4 points
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| Previously a city received a $1 million gift, the income from which was restricted to support maintenance of city-owned parks.  During the current year the endowment earned $70,000 of which $50,000 was transferred to the City Park Special Revenue Fund. On the year-end financial statements, the special revenue fund will reportAnswer | | | | | Selected Answer:|    $50,000 Nonreciprocal Transfer In| Correct Answer:|    $50,000 Nonreciprocal Transfer In|

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Question 5
4 out of 4 points
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| Previously a city received a $1 million gift, the income from which was restricted to support maintenance of city-owned parks.  During the current year the endowment earned $70,000 of which $50,000 was transferred to the City Park Special Revenue Fund. On the year-end financial statements, the endowment fund would report, as a result of these transactions, a fund balance (net assets) of:Answer | | | | | Selected Answer:|    $1,020,000|

Correct Answer:|    $1,020,000|
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Question 6
4 out of 4 points
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| Which of the following activities of a governmental entity should be accounted for in a fiduciary fund?Answer | | | | | Selected Answer:|    Funds received from an individual who specified that the principal must be kept intact but the income can be used to support families of police officers killed in the line of duty.| Correct Answer:|    Funds received from an individual who specified that the principal must be kept intact but the income can be used to support families of police officers killed in the line of duty.|

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Question 7
4 out of 4 points
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| A governmental entity receives a gift of cash and investments with a fair value of $200,000.  The donor specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested.  The $200,000 gift should be accounted for in which of the following funds?Answer | | | | | Selected Answer:|    Permanent fund.|

Correct Answer:|    Permanent fund.|
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Question 8
4 out of 4 points
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| In previous years, Center City had received a $400,000 gift of cash and investments.  The...
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