The Use of Funds in Government Accounting
Chapter 2: The Use of Funds in Governmental Accounting
Multiple Choice
1. To what does basis of accounting refer? a. whether an entity is trying to measure the excess of inflows over outflows b. how much cash an entity received in a particular reporting period c. the timing of recognition of assets, liabilities, revenues, and expenditures/expenses in financial statements d. the ownership of the assets, liabilities, and equities reported in a balance sheet
Answer: c
2. Governmental accounting normally does not a. use separate funds to account for various activities b. incorporate budgetary accounts into the accounting system c. measure the amount of profit earned during a fiscal year d. focus on flows of current financial resources
Answer: c
3. In governmental accounting, a fund is best defined as: a. a sum of cash set aside to attain certain objectives b. a fiscal entity that has both financial and capital resources c. a fiscal entity that has cash resources only d. a fiscal and accounting entity with a self-balancing set of accounts
Answer: d
4. Which of the following funds all use the current financial resources measurement focus? a. Debt Service Fund, Special Revenue Fund, and Capital Projects Fund b. General Fund, Debt Service Fund, and Internal Service Fund c. Debt Service Fund, Investment Trust Fund, and Capital Projects Fund d. General Fund, Debt Service Fund, and Pension Trust Fund
Answer: a
5. The three broad categories of funds used by governmental entities are: a. Governmental, Proprietary, and Fiduciary b. Unrestricted, Partially Restricted, and Fully Restricted c. General, Special, and Fiduciary d. General, Enterprise, and Agency
Answer: a
6. Within a fund, which of the following results from using the current financial resources measurement focus? a. capital assets will be depreciated b. property taxes will be
Multiple Choice
1. To what does basis of accounting refer? a. whether an entity is trying to measure the excess of inflows over outflows b. how much cash an entity received in a particular reporting period c. the timing of recognition of assets, liabilities, revenues, and expenditures/expenses in financial statements d. the ownership of the assets, liabilities, and equities reported in a balance sheet
Answer: c
2. Governmental accounting normally does not a. use separate funds to account for various activities b. incorporate budgetary accounts into the accounting system c. measure the amount of profit earned during a fiscal year d. focus on flows of current financial resources
Answer: c
3. In governmental accounting, a fund is best defined as: a. a sum of cash set aside to attain certain objectives b. a fiscal entity that has both financial and capital resources c. a fiscal entity that has cash resources only d. a fiscal and accounting entity with a self-balancing set of accounts
Answer: d
4. Which of the following funds all use the current financial resources measurement focus? a. Debt Service Fund, Special Revenue Fund, and Capital Projects Fund b. General Fund, Debt Service Fund, and Internal Service Fund c. Debt Service Fund, Investment Trust Fund, and Capital Projects Fund d. General Fund, Debt Service Fund, and Pension Trust Fund
Answer: a
5. The three broad categories of funds used by governmental entities are: a. Governmental, Proprietary, and Fiduciary b. Unrestricted, Partially Restricted, and Fully Restricted c. General, Special, and Fiduciary d. General, Enterprise, and Agency
Answer: a
6. Within a fund, which of the following results from using the current financial resources measurement focus? a. capital assets will be depreciated b. property taxes will be