Asset and General Fund
Alabama State University
College of Business Administration
ACT 532 Advanced Fund Accounting
Exam III
November 20, 2012
1) Governments must report nonspendable fund balance in a governmental fund 's balance sheet for
A) Inventory.
B) Prepaid assets.
C) Land.
D) All of the above.
E) Items A and B only.
Answer:
2) The following benefits are examples of other postemployment benefits (OPEB) except for
A) Health care insurance.
B) Pension benefits.
C) Vision insurance.
D) Life insurance.
E) All of the above are common examples of OPEB.
Answer:
3) Assume that the Village of Hannah uses the purchases method of inventory accounting. At the end of the year the inventory levels have increased. What entry would be made to reflect the inventory increase?
A) DEBIT Inventory of Supplies, CREDIT Fund Balance
B) DEBIT Expenditures, CREDIT Inventory of Supplies
C) DEBIT Inventory of Supplies, CREDIT Other Financing Sources
D) DEBIT Expenditures, CREDIT Other Financing Sources
E) DEBIT Inventory of Supplies, CREDIT Expenditures
Answer:
4) Which of the following is not a typical governmental fund liability (and thus not an expenditure that is recognized when the liability is incurred)?
A) Accounts payable
B) Debt service
C) Salaries payable
D) Vouchers payable
E) All of the above are typical governmental fund liabilities.
Answer:
5) Which of the following governmental fund expenditures would not be considered a current operating expenditure?
A) Capital outlay
B) Rent
C) Office supplies
D) Salaries and wages
E) Employee benefits
F) All of the above expenditures would be classified as current operating expenditures in a governmental fund.
Answer:
6) Expenditures in a governmental fund are recognized when due except for
A) Interest on general long-term debt.
B) General long-term debt principal retirement.
C) Capital outlay.
D) Rent.
E) Items A and B only.
F) Items C and D only.
Answer:
7) Assume that Onyx County 's annual
College of Business Administration
ACT 532 Advanced Fund Accounting
Exam III
November 20, 2012
1) Governments must report nonspendable fund balance in a governmental fund 's balance sheet for
A) Inventory.
B) Prepaid assets.
C) Land.
D) All of the above.
E) Items A and B only.
Answer:
2) The following benefits are examples of other postemployment benefits (OPEB) except for
A) Health care insurance.
B) Pension benefits.
C) Vision insurance.
D) Life insurance.
E) All of the above are common examples of OPEB.
Answer:
3) Assume that the Village of Hannah uses the purchases method of inventory accounting. At the end of the year the inventory levels have increased. What entry would be made to reflect the inventory increase?
A) DEBIT Inventory of Supplies, CREDIT Fund Balance
B) DEBIT Expenditures, CREDIT Inventory of Supplies
C) DEBIT Inventory of Supplies, CREDIT Other Financing Sources
D) DEBIT Expenditures, CREDIT Other Financing Sources
E) DEBIT Inventory of Supplies, CREDIT Expenditures
Answer:
4) Which of the following is not a typical governmental fund liability (and thus not an expenditure that is recognized when the liability is incurred)?
A) Accounts payable
B) Debt service
C) Salaries payable
D) Vouchers payable
E) All of the above are typical governmental fund liabilities.
Answer:
5) Which of the following governmental fund expenditures would not be considered a current operating expenditure?
A) Capital outlay
B) Rent
C) Office supplies
D) Salaries and wages
E) Employee benefits
F) All of the above expenditures would be classified as current operating expenditures in a governmental fund.
Answer:
6) Expenditures in a governmental fund are recognized when due except for
A) Interest on general long-term debt.
B) General long-term debt principal retirement.
C) Capital outlay.
D) Rent.
E) Items A and B only.
F) Items C and D only.
Answer:
7) Assume that Onyx County 's annual