GOVERNMENT ACCOUNTING – COMPREHENSIVE EXAM-
READY ASSESSMENT - LATEST PRACTICE QUESTIONS AND
100% VERIFIED CORRECT ANSWERS | COMPLETE EXAM PREP
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Description:
This examination consists of 150 multiple-choice questions covering all major areas of Government
Accounting including: governmental fund accounting; fund structure and classifications; measurement
focus and basis of accounting; budgetary accounting; revenue recognition (tax and nonexchange
transactions); expenditures and encumbrances; capital projects and debt service funds; government-wide
financial reporting; fiduciary funds; interfund transactions; financial statement presentation; government
accounting standards (including GASB framework); internal controls; auditing and compliance; ethics;
public sector financial management; performance measurement; and real-world governmental scenarios.
1. Which measurement focus is used in governmental funds?
A. Economic resources measurement focus
B. Accrual basis measurement focus
C. Current financial resources measurement focus
D. Cash basis measurement focus
Governmental funds use the current financial resources measurement focus,
recognizing inflows/outflows of expendable resources.
2. Government-wide financial statements are prepared using which basis of
accounting?
A. Modified accrual
B. Cash basis
C. Regulatory basis
D. Accrual basis
Government-wide statements use full accrual accounting and the economic
resources measurement focus.
3. Property taxes expected to be collected within 60 days after year-end are:
A. Deferred inflows
, B. Recognized as revenue
C. Recognized as liabilities
D. Not recorded
Under modified accrual, revenues are recognized if measurable and
available (usually within 60 days).
4. An encumbrance is recorded to:
A. Recognize an expenditure
B. Recognize a liability
C. Reserve budgetary authority
D. Record depreciation
Encumbrances commit budgetary authority but are not expenditures or
liabilities.
5. Which fund accounts for resources legally restricted for debt repayment?
A. General Fund
B. Capital Projects Fund
C. Debt Service Fund
D. Enterprise Fund
Debt Service Funds account for accumulation of resources for payment of
principal and interest.
6. Fiduciary funds are used to account for resources:
A. Available for government programs
B. Restricted for capital projects
C. Held for others in a trustee capacity
D. Used in business-type activities
Fiduciary funds report resources held for external parties.
7. Modified accrual recognizes expenditures when:
A. Incurred regardless of payment
, B. Paid
C. When liability is incurred (except long-term items)
D. When budgeted
Expenditures are recognized when liabilities are incurred, except long-term
debt and certain items.
8. A government issues bonds at a premium. In governmental funds, the
premium is recorded as:
A. Liability
B. Revenue
C. Other financing source
D. Deferred outflow
Bond proceeds and related premiums are other financing sources in
governmental funds.
9. Capital assets in governmental funds are:
A. Depreciated
B. Recorded as assets
C. Expensed as expenditures
D. Amortized
Governmental funds do not report capital assets; purchases are
expenditures.
10.Which statement is required in government-wide reporting?
A. Statement of Changes in Fund Balance
B. Statement of Net Position
C. Budgetary Comparison Statement
D. Statement of Retained Earnings
Government-wide statements include Statement of Net Position.
, 11.The General Fund accounts for:
A. Capital acquisitions
B. Fiduciary activities
C. Proprietary activities
D. All financial resources not required in another fund
The General Fund is the chief operating fund.
12.A special revenue fund is required when:
A. Revenue is unrestricted
B. Specific revenue sources are restricted or committed
C. Debt is issued
D. Assets are acquired
Special revenue funds account for restricted or committed specific revenues.
13.Depreciation of governmental capital assets is recorded in:
A. Governmental funds
B. Debt Service Fund
C. Government-wide statements
D. Capital Projects Fund
Depreciation appears only in government-wide statements.
14.Which is a nonexchange transaction?
A. Sale of utilities
B. Grant from federal government
C. Tuition fees
D. Parking fees
Grants are nonexchange transactions.
15.Budgetary accounts are closed at year-end to:
A. Retained earnings
B. Revenues
READY ASSESSMENT - LATEST PRACTICE QUESTIONS AND
100% VERIFIED CORRECT ANSWERS | COMPLETE EXAM PREP
TESTBANK | GUARANTEED PASS | INSTANT DOWNLOAD PDF
Description:
This examination consists of 150 multiple-choice questions covering all major areas of Government
Accounting including: governmental fund accounting; fund structure and classifications; measurement
focus and basis of accounting; budgetary accounting; revenue recognition (tax and nonexchange
transactions); expenditures and encumbrances; capital projects and debt service funds; government-wide
financial reporting; fiduciary funds; interfund transactions; financial statement presentation; government
accounting standards (including GASB framework); internal controls; auditing and compliance; ethics;
public sector financial management; performance measurement; and real-world governmental scenarios.
1. Which measurement focus is used in governmental funds?
A. Economic resources measurement focus
B. Accrual basis measurement focus
C. Current financial resources measurement focus
D. Cash basis measurement focus
Governmental funds use the current financial resources measurement focus,
recognizing inflows/outflows of expendable resources.
2. Government-wide financial statements are prepared using which basis of
accounting?
A. Modified accrual
B. Cash basis
C. Regulatory basis
D. Accrual basis
Government-wide statements use full accrual accounting and the economic
resources measurement focus.
3. Property taxes expected to be collected within 60 days after year-end are:
A. Deferred inflows
, B. Recognized as revenue
C. Recognized as liabilities
D. Not recorded
Under modified accrual, revenues are recognized if measurable and
available (usually within 60 days).
4. An encumbrance is recorded to:
A. Recognize an expenditure
B. Recognize a liability
C. Reserve budgetary authority
D. Record depreciation
Encumbrances commit budgetary authority but are not expenditures or
liabilities.
5. Which fund accounts for resources legally restricted for debt repayment?
A. General Fund
B. Capital Projects Fund
C. Debt Service Fund
D. Enterprise Fund
Debt Service Funds account for accumulation of resources for payment of
principal and interest.
6. Fiduciary funds are used to account for resources:
A. Available for government programs
B. Restricted for capital projects
C. Held for others in a trustee capacity
D. Used in business-type activities
Fiduciary funds report resources held for external parties.
7. Modified accrual recognizes expenditures when:
A. Incurred regardless of payment
, B. Paid
C. When liability is incurred (except long-term items)
D. When budgeted
Expenditures are recognized when liabilities are incurred, except long-term
debt and certain items.
8. A government issues bonds at a premium. In governmental funds, the
premium is recorded as:
A. Liability
B. Revenue
C. Other financing source
D. Deferred outflow
Bond proceeds and related premiums are other financing sources in
governmental funds.
9. Capital assets in governmental funds are:
A. Depreciated
B. Recorded as assets
C. Expensed as expenditures
D. Amortized
Governmental funds do not report capital assets; purchases are
expenditures.
10.Which statement is required in government-wide reporting?
A. Statement of Changes in Fund Balance
B. Statement of Net Position
C. Budgetary Comparison Statement
D. Statement of Retained Earnings
Government-wide statements include Statement of Net Position.
, 11.The General Fund accounts for:
A. Capital acquisitions
B. Fiduciary activities
C. Proprietary activities
D. All financial resources not required in another fund
The General Fund is the chief operating fund.
12.A special revenue fund is required when:
A. Revenue is unrestricted
B. Specific revenue sources are restricted or committed
C. Debt is issued
D. Assets are acquired
Special revenue funds account for restricted or committed specific revenues.
13.Depreciation of governmental capital assets is recorded in:
A. Governmental funds
B. Debt Service Fund
C. Government-wide statements
D. Capital Projects Fund
Depreciation appears only in government-wide statements.
14.Which is a nonexchange transaction?
A. Sale of utilities
B. Grant from federal government
C. Tuition fees
D. Parking fees
Grants are nonexchange transactions.
15.Budgetary accounts are closed at year-end to:
A. Retained earnings
B. Revenues
