Reference no: EM13578008
1. For the purpose of government-wide financial statements, the cost of cleaning up a government-owned landfill and closing the landfill
A) Is not recognized until the costs are actually incurred
B) Is accrued and amortized over the expected useful life of the landfill
C) Is accrued on a pro-rated basis each period based on how full the landfill is
D) Is accrued in full at the time the costs become estimable
E) Is treated as an encumbrance at the time it become estimable and as an expenditure when it is actually paid
2. Drye Township has received a donation of a rare painting worth $1,000,000. For Drye's government-wide financial statements, three criteria must be met before Drye can opt not to recognize the painting as an asset. Which of the following is not one of the three criteria?(1.) The painting is held for public exhibition, education, or research in furtherance of public service, rather than financial gain.(2.) The painting is scheduled to be sold immediately at auction.(3.) The painting is protected, kept unencumbered, cared for, and preserved.
A) Item 1 is not one of the three criteria
B) Item 2 is not one of the three criteria
C) Item 3 is not one of the three criteria
D) All three items are required criteria
E) None of the three items are required criteria
3. Which of the following is not a criterion of a capital lease?
A) The lease transfers ownership of the property to the lessee by the end of the lease term
B) The present value of the minimum lease payments equals or exceeds 90 percent of the fair value of the leased property, net of lessor's investment tax credit
C) The lease contains an option to purchase the leased property at a bargain price
D) The lease contains an option to renew
E) The lease term is equal to or greater than 75 percent of the estimated economic life of the leased property
4. Which statement is false regarding the government-wide Statement of Net Assets?
A) The purpose of the Statement of Net Assets is to report the economic resources of the government as a whole
B) Assets are reported excluding capital assets
C) Capital assets are reported net of depreciation
D) Investments are reported at fair value rather than historical cost
E) Business-type activities include Enterprise Funds
5. Which statement is false regarding the Balance Sheet for Fund-Based Statements?
A) The Balance Sheet for Fund-Based Statements measures only current financial resources of the governmental entity
B) The Balance Sheet for Fund-Based Statements uses the modified accrual method for timing purposes
C) Capital assets are not reported on the Balance Sheet for Fund-Based Statements
D) The Balance Sheet for Fund-Based Statements measures only long-term financial resources of the governmental entity
E) Long-term debts are not reported on the Balance Sheet for Fund-Based Statements
6. The city operates a public pool where each person is assessed a $2 entrance fee. Which fund is most appropriate to record these revenues?
A) General Fund
B) Enterprise Fund
C) Special Revenue Fund
D) Internal Service Fund
E) Capital Projects Fund
7. Which of the following types of health care organizations follow FASB Accounting Standards Codification for GAAP?
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Investor-Owned Health Care Enterprises
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Not-for-Profit Organizations
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Governmental Health Care Organizations
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A)
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Yes
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Yes
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No
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B)
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Yes
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Yes
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Yes
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C)
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No
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No
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Yes
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D)
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Yes
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No
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Yes
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E)
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Yes
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No
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No
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A) Entry A
B) Entry B
C) Entry C
D) Entry D
E) Entry E
8. In accruing patient charges for the current month, which one of the following accounts should a hospital credit?
A) Accounts Payable
B) Deferred Revenue
C) Unearned Revenue
D) Patient Service Revenues
E) Accounts Receivable
9. Which account would be credited in recording a gift of medicine to a nursing home from an outside party?
A) Nonoperating Gain - Contributions
B) Contractual Adjustments
C) Patient Service Revenues
D) Drugs and Medicines
E) Nonoperating Revenues - Contribution
10. Unconditional transfers of cash or other resources to an entity in a voluntary nonreciprocal transaction is the GAAP definition for
A) miscellaneous revenues
B) contributions
C) unconditional promises to give
D) exchange transactions
E) pledges
11. On a statement of functional expenses for a voluntary health and welfare organization, how are expenses classified?
A) Health services expenses and operating expenses
B) Program services expenses and administrative services expenses
C) Program services expenses and supporting services expenses
D) Operating expenses and supporting services expenses
E) Operating expenses and administrative expenses