ACC 308 Practice Questions
A $1,000,000 general obligation bond issued by a city to build a new city hall is
reported as:
Select one:
a. Proceeds of bonds in the debt service fund statement of revenues, expenditures,
and changes in fund balance.
b. A liability in the capital projects fund balance sheet.
c. Proceeds of bonds in the capital projects statement of revenues, expenditures,
and changes in fund balance.
d. Cash in the agency fund. - ------------ANS: c
A city that serves as the primary recipient of property taxes that must be shared with
other local governments and school districts is said to be engaged in a:
Select one:
a. Investment trust fund activity.
b. Business-type activity.
c. Fiduciary activity.
d. Governmental activity. - ------------ANS: c
A federal or nonfederal entity that expends more than $750,000 in a year:
A. Must have a Single Audit, following guidance in OMB 2 CFR Part 200, Subpart F.
B. Must have a Single Audit performed by a GAO Inspector General.
C. Does not need a Single Audit if it passes those federal funds along to a
not-for-profit organization.
,D. Must submit a Single Audit report to the U.S. Department of Treasury. -
------------ANS: a
A government recorded the issuance of a purchase order to a vendor for 100
computers at an estimated cost of $3,000 each in the General Fund. Half of the
order was received two weeks later with an invoice of $160,000 for the 50
computers. The General Fund journal entry to record the receipt of these computers
will include:
Select one:
a. Debit to Encumbrances for $150,000.
b. Debit to Expenditures for $10,000.
c. Credit to Encumbrances for $300,000.
d. Debit to Expenditures for $160,000. - ------------ANS: d
A hospital, whether it is for-profit, not-for-profit, or public, records all of the following
items as deductions from revenue or as expenses on its operating statement except:
Select one:
a. Contractual adjustments.
b. Bad debt expense
c. Billings to patients.
d. Charity service. - ------------ANS: d
A reporting entity, such as a city, will report the financial position and results of
operations of a component unit:
Select one:
, a. By blending in each of the account names and balances with that of the reporting
entity.
b. Discretely in a separate column.
c. Either discretely or blended.
d. In the notes to the financial statements. - ------------ANS: c
A state or local government that receives more than $500,000 in a year but does not
spend it:
A. Does not need a Single Audit that year, as long as it passes those federal funds
along to not-for-profit organizations.
B. Must submit a Single Audit report to the US Department of Commerce.
C. Must have a Single Audit, following OMB Circular A-133 guidance.
D. Is not required to have a Single Audit that year. - ------------ANS: d
A tax-exempt organization whose support from its members and the general public
this year drops to 30% of total revenue from 40% of total revenue in the prior year
will:
Select one:
a.
Face excise taxes for prohibited behavior.
b.
Lose its tax-exempt status.
c.
A $1,000,000 general obligation bond issued by a city to build a new city hall is
reported as:
Select one:
a. Proceeds of bonds in the debt service fund statement of revenues, expenditures,
and changes in fund balance.
b. A liability in the capital projects fund balance sheet.
c. Proceeds of bonds in the capital projects statement of revenues, expenditures,
and changes in fund balance.
d. Cash in the agency fund. - ------------ANS: c
A city that serves as the primary recipient of property taxes that must be shared with
other local governments and school districts is said to be engaged in a:
Select one:
a. Investment trust fund activity.
b. Business-type activity.
c. Fiduciary activity.
d. Governmental activity. - ------------ANS: c
A federal or nonfederal entity that expends more than $750,000 in a year:
A. Must have a Single Audit, following guidance in OMB 2 CFR Part 200, Subpart F.
B. Must have a Single Audit performed by a GAO Inspector General.
C. Does not need a Single Audit if it passes those federal funds along to a
not-for-profit organization.
,D. Must submit a Single Audit report to the U.S. Department of Treasury. -
------------ANS: a
A government recorded the issuance of a purchase order to a vendor for 100
computers at an estimated cost of $3,000 each in the General Fund. Half of the
order was received two weeks later with an invoice of $160,000 for the 50
computers. The General Fund journal entry to record the receipt of these computers
will include:
Select one:
a. Debit to Encumbrances for $150,000.
b. Debit to Expenditures for $10,000.
c. Credit to Encumbrances for $300,000.
d. Debit to Expenditures for $160,000. - ------------ANS: d
A hospital, whether it is for-profit, not-for-profit, or public, records all of the following
items as deductions from revenue or as expenses on its operating statement except:
Select one:
a. Contractual adjustments.
b. Bad debt expense
c. Billings to patients.
d. Charity service. - ------------ANS: d
A reporting entity, such as a city, will report the financial position and results of
operations of a component unit:
Select one:
, a. By blending in each of the account names and balances with that of the reporting
entity.
b. Discretely in a separate column.
c. Either discretely or blended.
d. In the notes to the financial statements. - ------------ANS: c
A state or local government that receives more than $500,000 in a year but does not
spend it:
A. Does not need a Single Audit that year, as long as it passes those federal funds
along to not-for-profit organizations.
B. Must submit a Single Audit report to the US Department of Commerce.
C. Must have a Single Audit, following OMB Circular A-133 guidance.
D. Is not required to have a Single Audit that year. - ------------ANS: d
A tax-exempt organization whose support from its members and the general public
this year drops to 30% of total revenue from 40% of total revenue in the prior year
will:
Select one:
a.
Face excise taxes for prohibited behavior.
b.
Lose its tax-exempt status.
c.
