CPFO Accounting & Financial Reporting
(Study) Questions With Complete
Solutions
Which of the following is a true statement about the public-sector environment as
it relates to accounting and financial reporting?
A. Different operations of a government may have different financial objectives
B. There is a heightened focus on accountability
C. Both A and B
D. None of the above
In which of the following situations would individuals normally pay based upon
what they individually receive?
A. Governmental operations
B. Business-type operations
C. Both A and B
D. None of the above
Which of the following is concerned primarily with the near-term impact of events
and transactions?
A. Governmental operations
B. Business-type operations
C. Both A and B
D. None of the above
Which of the following could serve as a basis for a special revenue fund?
A. Grant proceeds
B. Dedicated tax increment
C. Earmarked fund balance from the general fund
D. All of the above
E. Both A and B
,Which of the following could be used to report resources that are available to
support the government's own programs?
A. Permanent funds
B. Private-purpose trust funds
C. Custodial funds
D. All of the above
E. Both A and B
Which of the following would most likely be reported in a proprietary fund?
A. Taxes
B. Grants
C. Fees and charges
D. Resources held in trust
The only real difference between an enterprise fund and an internal service fund
is the identity of the customers (enterprise fund = external customers; internal
service funds = internal customers).
A. True
B. False
B. False - in addition to the identity of the customers, internal service funds are required
to break even over time, but enterprise funds DO NOT have to break even over time
A statement of financial position would report more assets and liabilities under
which measurement focus?
A. Economic resources measurement focus
B. Current financial resources measurement focus
C. Neither A nor B
Which of the following would be reported in a statement of resource flows
prepared using the current financial resources measurement focus?
A. The receipt of debt proceeds
B. Capital outlays
C. Debt service principal payments
D. All of the above
E. None of the above
, Which of the following would be reported in a statement of resource flows
prepared using the economic resources measurement focus?
A. The receipt of debt proceeds
B. Capital outlays
C. Debt service principal payments
D. All of the above
E. None of the above
Which of the following terms could be used in a statement of resource flows
prepared using the current financial resources measurement focus?
A. Revenue
B. Gain
C. Expense
D. Loss
E. All the above
F. None of the above
How would property taxes be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions
How would income taxes be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions
How would billings to electrical utility customers be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions
(Study) Questions With Complete
Solutions
Which of the following is a true statement about the public-sector environment as
it relates to accounting and financial reporting?
A. Different operations of a government may have different financial objectives
B. There is a heightened focus on accountability
C. Both A and B
D. None of the above
In which of the following situations would individuals normally pay based upon
what they individually receive?
A. Governmental operations
B. Business-type operations
C. Both A and B
D. None of the above
Which of the following is concerned primarily with the near-term impact of events
and transactions?
A. Governmental operations
B. Business-type operations
C. Both A and B
D. None of the above
Which of the following could serve as a basis for a special revenue fund?
A. Grant proceeds
B. Dedicated tax increment
C. Earmarked fund balance from the general fund
D. All of the above
E. Both A and B
,Which of the following could be used to report resources that are available to
support the government's own programs?
A. Permanent funds
B. Private-purpose trust funds
C. Custodial funds
D. All of the above
E. Both A and B
Which of the following would most likely be reported in a proprietary fund?
A. Taxes
B. Grants
C. Fees and charges
D. Resources held in trust
The only real difference between an enterprise fund and an internal service fund
is the identity of the customers (enterprise fund = external customers; internal
service funds = internal customers).
A. True
B. False
B. False - in addition to the identity of the customers, internal service funds are required
to break even over time, but enterprise funds DO NOT have to break even over time
A statement of financial position would report more assets and liabilities under
which measurement focus?
A. Economic resources measurement focus
B. Current financial resources measurement focus
C. Neither A nor B
Which of the following would be reported in a statement of resource flows
prepared using the current financial resources measurement focus?
A. The receipt of debt proceeds
B. Capital outlays
C. Debt service principal payments
D. All of the above
E. None of the above
, Which of the following would be reported in a statement of resource flows
prepared using the economic resources measurement focus?
A. The receipt of debt proceeds
B. Capital outlays
C. Debt service principal payments
D. All of the above
E. None of the above
Which of the following terms could be used in a statement of resource flows
prepared using the current financial resources measurement focus?
A. Revenue
B. Gain
C. Expense
D. Loss
E. All the above
F. None of the above
How would property taxes be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions
How would income taxes be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions
How would billings to electrical utility customers be classified?
A. Exchange/exchange-like transactions
B. Derived tax revenues
C. Imposed nonexchange revenues
D. Government-mandated nonexchange transactions
E. Voluntary nonexchange transactions
