Acct 4421- Gov w Morgan LSU Verified Multiple Choice and Conceptual
Actual Exam Questions With Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
Capital Projects funds are not used for Capital assets
Which of the following is NOT a proper
categorization of a fun balance?
- Retained
Retained
-Committed
-Assigned
-Restricted
A city golf course is primarily funded by
enterprise- Business type activities that
user fees (known as green fees) and pro-
are partially funded by user fees are ac-
ceeds from concession sales. The oper-
counted for in proprietary funds. Enter-
ations of the city golf course would likely
prise funds are used when fees come
be accounted for in a fund.
from outside parties. Internal Service
-fiduciary
Funds are used when fees come from
-enterprise
other departments within the govern-
-special revenue
mental unit.
-internal service
C. FASB FASB covers business AND
Which government body provides autho- non-profit accounting and reporting.
rizative guidance to non profit entities GASB covers state and local accounting
regarding financial reporting? and reporting. FASAB covers federal ac-
counting and reporting.
D. Permanent If the interest on an en-
The City of Clinton, Louisiana received a
dowment type arrangement is dedicated
gift of $1,000,000 that is to be invested
to pay for government services, main-
and only the interest can be spent by the
tenance of government assets or ben-
city. The interest income is to be used
efit citizens, it is goes into a Perma-
to maintain the city parks. What type of
nent Fund, which is a governmental fund.
fund will be set up for this money? A. In-
Money held permanently from which in-
vestment Trust Fund B. Special Revenue
terest is used for purposes outside of
Fund C. Fiduciary Fund D Permanent
the government and its citizens would be
Fund
held in a fuduciary fund.
Governmental Funds include which of C. Capital Project The five governmen-
the following: A. Fiduciary Fund B. Inter- tal types of funds are General Capital
nal Service Fund C. Capital Project Fund Projects Debt Service Special Revenue
D. Trust Fund Permanent
Which of the following financial state-
ments are prepared using the modified
, Acct 4421- Gov w Morgan LSU Verified Multiple Choice and Conceptual
Actual Exam Questions With Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
accrual basis of accounting and thus do B. Governmental Only governmental
not report long term assets? A. Govern- funds are focused on availability of cur-
ment Wide FS B. Governmental Funds rent financial resources only. The other
FS C. Enterprise Funds FS D. Internal financial statements are reported under
Service Funds the full accrual method.
Sally goes to work for the City of Shreve-
port. Employees at the City of Shreveport
participate in a pension plan adminis-
tered by the state of Louisiana. If she
works at least 10 years, she will receive A Defined Benefit Plan
a guaranteed payment stream starting
at age 60. This is an example of:A De-
fined Benefit Plan B. Defined Contribu-
tion Plan C. 401k Plan D. TIF Funding
The state legislature allocated
$5,000,000 to Lake Charles to be used B Restricted Restricted is the most con-
only to supplement the salaries of fire- strained and it indicates that the con-
fighters. This would be reflected on the straint was placed by an outside party,
financial statements of the general funds and therefore it is unlikely the constraint
as A. Committed fund can be removed. In this case the state
balance B Restricted fund balance C. placed the constraint on funds held by
Assigned fund balance D. Nonspendable the city.
fund balance
False- Non-profits may use fund ac-
T or F Non-profit entities fall under guid- counting, but they are not required to. It is
ance of FASB, therefore they are not al- up to the non-profit to determine whether
lowed to use fund accounting. or not fund accounting is the appropriate
method.
The City of Houston maintains a fleet of
vehicles to be used by employees on an
A. Internal Service I gave everybody
"as needed" basis for work related trav-
credit for this because I accidently said
el. The fleet management department
"charges other state departments" which
maintains the vehicles and charges other
would indicate outside parties. It was
state departments a daily fee for use of
supposed to say other departments with-
these vehicles. These fees represent the
in the city, which would call for using an
majority of revenues of the fleet man-
Internal Service Fund.
agement department. The fleet manage-
ment department is likely accounted for
, Acct 4421- Gov w Morgan LSU Verified Multiple Choice and Conceptual
Actual Exam Questions With Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
in a . A Internal Service Fund
B Enterprise Fund C General Fund D
Special Revenue Fund
Which of the following funds would def-
initely NOT be reported separately in B The general fund is always report-
Fund Financial Statements? (assume ed separately. Usually Special Revenue
the only test in question is the assets funds are reported separately. All other
test) A The General Fund B Capital pro- governmental funds are put through two
jects fund with total assets that represent tests. Does it exceed 10% of all govern-
3% of all governmental funds assets C mental fund assets (since we limited this
Capital Projects fund with total assets to assets)? If no, it is not reported sepa-
that represent 15% of assets of all funds rately. If it is, you go to the second test,
combined D Special Revenue fund, be- does it exceed 5% of funds combined
cause Special Revenue funds are never (governmental and non-governmental)
reported separatell
Lafayette received $150,000 from the
state legislature without stipulation of its C $150,000 Maintenance of city infra-
use, other than it is to be used to sup- struture (roads and bridges) is a basic
plement maintenance of city infrastruc- function of government. the $150,000 to
ture. The city also received $50,000 of be used on maintenance of city infra-
interest on the bank account in the name structure would go into the general fund.
of the City of Lafayette Employee Pen- The $50,000 of interest does not belong
sion Plan. How much of these receipts to the city, it belongs to the retirement
would be accounted for in the general plan. The $50,000 would go into a fidu-
fund of the city? A. $50,000 B. $200,000 ciary fund.
C. $150,000 D. $0
C These funds are committed/restrict-
Shreveport issued a total of $50,000,000
ed for use on specific projects. Both
of bonds to construct a city hall. Shreve-
amounts of money would go into capital
port also received a $50,000,000 grant
projects funds because they are intend-
from the state to build a new soccer and
ed to be used for construction projects.
baseball complex. The funds received
They would not share the same fund,
for these two projects would likely be
because the funds came from two dif-
placed in . A.
ferent sources, for two different intend-
a debt service fund ($50,000,000) and a
ed uses, with two different sets of con-
capital projects fund ($50,000,000) B a
traints imposed on the funds (the grant
single capital projects fund for the com-
language and the bond documents). If
bined $100,000,000 C. Two capital pro-
the money came from two sources, but
Actual Exam Questions With Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
Capital Projects funds are not used for Capital assets
Which of the following is NOT a proper
categorization of a fun balance?
- Retained
Retained
-Committed
-Assigned
-Restricted
A city golf course is primarily funded by
enterprise- Business type activities that
user fees (known as green fees) and pro-
are partially funded by user fees are ac-
ceeds from concession sales. The oper-
counted for in proprietary funds. Enter-
ations of the city golf course would likely
prise funds are used when fees come
be accounted for in a fund.
from outside parties. Internal Service
-fiduciary
Funds are used when fees come from
-enterprise
other departments within the govern-
-special revenue
mental unit.
-internal service
C. FASB FASB covers business AND
Which government body provides autho- non-profit accounting and reporting.
rizative guidance to non profit entities GASB covers state and local accounting
regarding financial reporting? and reporting. FASAB covers federal ac-
counting and reporting.
D. Permanent If the interest on an en-
The City of Clinton, Louisiana received a
dowment type arrangement is dedicated
gift of $1,000,000 that is to be invested
to pay for government services, main-
and only the interest can be spent by the
tenance of government assets or ben-
city. The interest income is to be used
efit citizens, it is goes into a Perma-
to maintain the city parks. What type of
nent Fund, which is a governmental fund.
fund will be set up for this money? A. In-
Money held permanently from which in-
vestment Trust Fund B. Special Revenue
terest is used for purposes outside of
Fund C. Fiduciary Fund D Permanent
the government and its citizens would be
Fund
held in a fuduciary fund.
Governmental Funds include which of C. Capital Project The five governmen-
the following: A. Fiduciary Fund B. Inter- tal types of funds are General Capital
nal Service Fund C. Capital Project Fund Projects Debt Service Special Revenue
D. Trust Fund Permanent
Which of the following financial state-
ments are prepared using the modified
, Acct 4421- Gov w Morgan LSU Verified Multiple Choice and Conceptual
Actual Exam Questions With Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
accrual basis of accounting and thus do B. Governmental Only governmental
not report long term assets? A. Govern- funds are focused on availability of cur-
ment Wide FS B. Governmental Funds rent financial resources only. The other
FS C. Enterprise Funds FS D. Internal financial statements are reported under
Service Funds the full accrual method.
Sally goes to work for the City of Shreve-
port. Employees at the City of Shreveport
participate in a pension plan adminis-
tered by the state of Louisiana. If she
works at least 10 years, she will receive A Defined Benefit Plan
a guaranteed payment stream starting
at age 60. This is an example of:A De-
fined Benefit Plan B. Defined Contribu-
tion Plan C. 401k Plan D. TIF Funding
The state legislature allocated
$5,000,000 to Lake Charles to be used B Restricted Restricted is the most con-
only to supplement the salaries of fire- strained and it indicates that the con-
fighters. This would be reflected on the straint was placed by an outside party,
financial statements of the general funds and therefore it is unlikely the constraint
as A. Committed fund can be removed. In this case the state
balance B Restricted fund balance C. placed the constraint on funds held by
Assigned fund balance D. Nonspendable the city.
fund balance
False- Non-profits may use fund ac-
T or F Non-profit entities fall under guid- counting, but they are not required to. It is
ance of FASB, therefore they are not al- up to the non-profit to determine whether
lowed to use fund accounting. or not fund accounting is the appropriate
method.
The City of Houston maintains a fleet of
vehicles to be used by employees on an
A. Internal Service I gave everybody
"as needed" basis for work related trav-
credit for this because I accidently said
el. The fleet management department
"charges other state departments" which
maintains the vehicles and charges other
would indicate outside parties. It was
state departments a daily fee for use of
supposed to say other departments with-
these vehicles. These fees represent the
in the city, which would call for using an
majority of revenues of the fleet man-
Internal Service Fund.
agement department. The fleet manage-
ment department is likely accounted for
, Acct 4421- Gov w Morgan LSU Verified Multiple Choice and Conceptual
Actual Exam Questions With Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
in a . A Internal Service Fund
B Enterprise Fund C General Fund D
Special Revenue Fund
Which of the following funds would def-
initely NOT be reported separately in B The general fund is always report-
Fund Financial Statements? (assume ed separately. Usually Special Revenue
the only test in question is the assets funds are reported separately. All other
test) A The General Fund B Capital pro- governmental funds are put through two
jects fund with total assets that represent tests. Does it exceed 10% of all govern-
3% of all governmental funds assets C mental fund assets (since we limited this
Capital Projects fund with total assets to assets)? If no, it is not reported sepa-
that represent 15% of assets of all funds rately. If it is, you go to the second test,
combined D Special Revenue fund, be- does it exceed 5% of funds combined
cause Special Revenue funds are never (governmental and non-governmental)
reported separatell
Lafayette received $150,000 from the
state legislature without stipulation of its C $150,000 Maintenance of city infra-
use, other than it is to be used to sup- struture (roads and bridges) is a basic
plement maintenance of city infrastruc- function of government. the $150,000 to
ture. The city also received $50,000 of be used on maintenance of city infra-
interest on the bank account in the name structure would go into the general fund.
of the City of Lafayette Employee Pen- The $50,000 of interest does not belong
sion Plan. How much of these receipts to the city, it belongs to the retirement
would be accounted for in the general plan. The $50,000 would go into a fidu-
fund of the city? A. $50,000 B. $200,000 ciary fund.
C. $150,000 D. $0
C These funds are committed/restrict-
Shreveport issued a total of $50,000,000
ed for use on specific projects. Both
of bonds to construct a city hall. Shreve-
amounts of money would go into capital
port also received a $50,000,000 grant
projects funds because they are intend-
from the state to build a new soccer and
ed to be used for construction projects.
baseball complex. The funds received
They would not share the same fund,
for these two projects would likely be
because the funds came from two dif-
placed in . A.
ferent sources, for two different intend-
a debt service fund ($50,000,000) and a
ed uses, with two different sets of con-
capital projects fund ($50,000,000) B a
traints imposed on the funds (the grant
single capital projects fund for the com-
language and the bond documents). If
bined $100,000,000 C. Two capital pro-
the money came from two sources, but
