1.Not-for-profit health care organization financial statements include aa.Statement of Cash Flowsc.Statement of Revenues, Expenses, and Changes in Fund Balanceb.Statement of Activitiesd.Statement of Budget to Actual2.Not-for-profit health care organization financial statements include a a.Statement of Net Assetsc.Statement of Operationsb.Statement of Activitiesd.Statement of Budget to Actual3.A not-for-profit health care organization Statement of Operations displays the a.cash balance at the end of the yearc.net cash used by operating activitiesb.amount of operating incomed.classified net assets4.When the Allowance for Doubtful Accounts is adjusted, the expense is charged toa.Charity Carec.Doubtful Account Expensesb.Provision for Bad Debtsd.Reservation of Fund Equity5.Public colleges and universities follow accounting standards issued bya.GASBc.AICPAb.FASBd.NACUBO6. GASB Statement No. 35 requires governmental colleges and universities toa.follow the GASB Statement No. 34 financial reporting modelc.use the 1995 AICPA Audits of Colleges and Universities financial reporting modelb.produce a Statement of Operationsd.only use the modified approach for infrastructure assets7.A college or university is classified as governmental if a.the governing board is appointed by the college presidentc.the governing board is publicly electedb.the university pays corporate income taxesd.all of the above8.The Coleville Community College can levy taxes, issue tax-exempt debt and the governing board is publicly elected. The Coleville Community College is a a.private not-for-profit organizationc.business-type activityb.governmental organizationd.both b and c are correct9.Governmental colleges and universities implementing GASB Statements No. 34 and 35 willa.no longer use fundsc.use invested in capital assets net of related debt, restricted and unrestricted net asset classesb.use restricted, unrestricted and temporarily restricted net asset classesd.none of the above10.Colleges and universities may elect to record transactions directly into net asset classes rather than a.the Statement of Activitiesc.fundsb.the Statement of Operationsd.liabilities11.Governmental colleges and universities display student financial aid as a(n)a.discountc.it is not displayedb.expensed.expenditure12.A public college provides scholarship assistance of $8,000,000 to its students. When the students register for classes the college applies $7,500,000 of the financial aid to their tuition and fee bills of $10,000,000 and students receive $500,000 in cash. The amount that will be recognized as tuition and fee revenue by the college isa.$10,000,000c.$2,500,000b.$2,000,000d.$9,500,00013.A public university bills $80,000,000 in tuition and fees and provides $23,000,000 in financial aid. The university refunds in cash $800,000 of this financial aid directly to students.What amount will the university report as tuition and fee revenue?a.$80,000,000c.$57,000,000b.$79,200,000d.$57,800,00014.A public college has tuition and fee billings of $30,000,000 and provides $6,000,000 in financial aid to students. The students apply $5,200,000 of this financial aid to their tuition and fee bill and take the excess in cash. What amount is reported as an expense for financial aid?a.$6,000,000c.$800,000b.$5,200,000d.$6,800,00015.A public college and university have tuition and fee revenue of $18,000,000 for the summer semester that bridges two fiscal years. Sixty percent of the instruction takes place in the next fiscal year and the university decides to allocate the revenue on that basis. The journal entry to record this transaction in the current fiscal year will includea.$10,800,000 in revenuec.$10,800,000 in deferred revenueb.$18,000,000 in revenued.$7,200,000 in deferred revenue16.A patron gets a call from the Metropolitan Opera Society and pledges $1,000 to be used for general operations. The Metropolitan Opera Society will recorda.Contribution Revenue – Unrestrictedc.Contribution Revenue – Permanently Restrictedb.Contribution Revenue – Temporarily Restrictedd.nothing because it is only an oral pledge17.The Humane Society conducts a fund-raising drive by telephone and has total pledges of $55,000 and notes on other possible donors who were still considering making pledges of $8,000. What amount of contribution revenue will be recorded?a.$55,000c.$8,000b.$63,000d.Zero18.A donor makes a pledge to the zoo of $8,000 that will be paid in four installments of $2,000 each this year. The first installment of $2,000 is mailed in with the pledge card and the zoo will recorda.Contribution Revenue – Temporarily Restricted of $8,000c.Contribution Revenue – Unrestricted of $2,000b.Contribution Revenue – Temporarily Restricted of $6,000d.both b and c19.A local charity received a $1,000 pledge that the donor agrees to pay next year. This is a(n)a.unconditional, unrestricted contributionc.conditional, unrestricted contributionb.unconditional, restricted contributiond.conditional, restricted contribution20.A woman cleans out her attic and takes her thirty-year old clothes to her local Goodwill store. She estimates she could get $50 for these if she held a garage sale. The Goodwill store sorts the clothes and determines they cannot be used or sold and puts them in the pile that will go to the landfill. Goodwill should recorda.a loss equal to amount of the dumping feec.nothingb.a $50 unrestricted contributiond.a $50 unrestricted contribution net of the dumping fee21.The League of Women Voters meets once a month in a conference room that is made available free by a local hotel and spends $25 for coffee and cookies at the hotel. The normal rental rate for this room is $150. The League will record a.nothingc.$125 unrestricted contributionb.$150 temporarily restricted contributiond.$150 unrestricted contribution22.A local corporation provides blankets worth $5,000 during a winter blizzard to be handed out by the homeless shelter to the needy. The shelter will recorda.an unrestricted contribution of $5,000c.a temporarily restricted contribution of $5,000b.an asset and liability of $5,000 eachd.none of the above23.A contributed service may be recognized as contribution revenue if it is aa.service that helps the organizationc.skill the organization normally purchasesb.specialized skill possessed by the individuald.b and c 24.A Certified Public Accountant provides 100 hours of free audit services to a local museum that is valued at $50 an hour and also helps out by spending 100 hours helping clean and landscape the grounds. The museum would record contribution revenue of a.$5,000c.zerob.$10,000d.none of the above25.A sculpture worth $22,000 is donated to a botanical garden that has an outdoor sculpture park. The botanical garden has decided to capitalize their sculpture collection so the donation would be recorded as aa.unrestricted contributionc.temporarily restricted contribution b.permanently restricted contributiond.invested in capital assets net of related debt26.A viewer makes a $100 pledge to the local public broadcasting station and receives a coffee mug valued at $2 in return. The station will record contribution revenue in the amount ofa.$100c.$102b.$98d.zero27.Supporting services includea.fund-raising activitiesc.management and generalb.membership development d.all of the above28.Not-for-profit organizations record capital assets in the a.capital asset accountc.depreciation accountb.property and equipment accountd.net assets account29.Not-for-profit organizations classify net assets as a.conditional or unconditionalc.temporarily restricted, permanently restricted or unrestrictedb.restricted or unrestrictedd.restricted, unrestricted and invested in capital assets net of related debt30.Investment income or net appreciation generated from unrestricted donated assets should be reported a.as a change in unrestricted net assetsc.as a change in cashb.where the donor specifiedd.as a change in contributions31.FASB Statement No. 124 requires that losses on investments of a donor-restricted endowment fund willa.reduce temporarily restricted net assets firstc.reduce unrestricted net assets firstb.reduce the endowmentd.be charged off as an expense32.The basic financial statements for a not-for-profit opera society include a a.Statement of Activitiesc.Statement of Budget to Actualb.Statement of Net Assetsd.Balance Sheet33.The basic financial statements for the American Red Cross includea.Statement of Net Assetsc.Statement of Budget to Actualb.Statement of Functional Expensesd.all of the above34.The Statement of Functional Expenses is only required for a.art museumsc.religious organizationsb.labor unionsd.voluntary health and welfare organizations35.The Statement of Financial Position classifies assets, liabilities and net assets bya.fundc.unrestricted, temporarily restricted or permanently restrictedb.program or supporting serviced.revenues or expense36.The primary government’s financial reporting entity includesa.organizations for which the primary government is an issuer of conduit debtc.organizations that receive grants from the primary governmentb.organizations for which the primary government is financially accountabled.organizations that collect taxes for the primary government37.Financial accountability exists if the primary governmenta.collects taxes for the entity but cannot impose its will on the entityc.cannot impose its will on the organization b.appoints a majority of the governing body and is responsible to fund any deficit incurred by the organizationd.appoints a majority of the governing body and collects taxes and issues conduit debt for the entity38.A primary government would have a potential financial benefit or burden from another organization if the primary government cana.modify the organization’s budgetc.modify the organization’s feesb.use the organization’s resourcesd.appoint the organization’s finance director39.Component units area.all other legally separate governmental entities that are located within a countyc.other organizations that should be included to prevent the financial statements from being misleadingb.all funds of the primary governmentd.all entities that participate in an external pool40.A component unit is blended ifa.the primary government can use or access the organization’s resourcesc.the primary government is obligated in some manner to repay the debt of the organizationb.the primary government can impose its will and appoint a majority of the governing boardd.the governing bodies of the component unit and the primary government are substantially the same41.Discretely presented component units are shown on the government-wide financial statementsa.in a separate column(s) of the Statement of Net Assetsc.only as a footnote disclosureb.blended with the primary government’s datad.in the governmental activities column of the Statement of Net Assets42.The Management’s Discussion and Analysisa.is optional under the GASB Statement No. 34 financial reporting modelc.should provide an analysis of significant variations between the original and final budgetb.should only discuss events that occurred during the fiscal yeard.should include all notes to the financial statements43.Required governmental fund financial statements includea.Statement of Net Assets and Statement of Revenues, Expenditures and Changes in Fund Balancesc.Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balancesb.Balance Sheet and Statement of Activitiesd.Statement of Net Assets and Statement of Activities44.A government must designate major and nonmajor funds fora.all fund categoriesc.each governmental and proprietary fundb.each governmental and fiduciary fundd.each governmental and enterprise fund45.The major funds of a financial reporting entity woulda.be presented in a separate column in the government-wide statementsc.include an Enterprise fund if its assets are 10% or more of the corresponding element for all fundsb.always include the General fundd.both a and b46.What are the two major sections of the Governmental Funds Balance Sheet?a.Assets; Liabilities and Fund Balancesc.Assets and Liabilities; Net Assetsb.Net Assets; Liabilities and Fund Equityd.Assets; Liabilities and Net Assets47.On the fund financial statements, assets and liabilities area.listed in alphabetical orderc.listed in order of relative liquidityb.classified as reserved and unreservedd.classified as unrestricted, temporarily restricted or permanently restricted48.On the Governmental Funds Balance Sheet there is a separate column fora.each governmental fund and a total for all governmental fundsc.the General fund, major governmental funds combined, nonmajor funds combined, and a total of all fundsb.the General fund, each major governmental fund, and a total of all component unit governmental fundsd.each major governmental fund, nonmajor governmental funds combined, and a total of all governmental funds49.The governmental fund financial statements must includea.component unit governmental fund totalsc.the classification of fund balance as designated and undesignatedb.a summary reconciliation to the government-wide financial statementsd.details of the six-step conversion to the government-wide financial statements50.In the conversion from the governmental fund financial statements to the government-wide statements, the amount of capital assets and accumulated depreciation area.included as a capital outlay expenditurec.increase the amount of total net assetsb.added as noncurrent assets d.both b and c51.The reconciliation of total governmental fund balances on the Governmental Funds Balance Sheet to net assets of governmental activities in the government-wide Statement of Net Assets includesa.adding assets and liabilities of Internal Service fundsc.adding other long-term assets that are deferred in the fundsb.adding general long-term liabilitiesd.all of the above52.In the conversion to the government-wide financial statements, assets and liabilities of the Internal Service funds area.added to the governmental activities assets and liabilitiesc.added to the component unit assets and liabilitiesb.added to the business-type activities assets and liabilitiesd.not reported53.In the conversion of the governmental fund financial statements to the government-wide statements the amount of long-term debt issued during the year is converted froma.Bond Proceeds Revenue to Bonds Payable Liabilityc.Other Financing Sources to Bonds Payable Liabilityb.Bonds Payable Liability to Other Financing Sourcesd.Cash with Fiscal Agent to Other Financing Sources54.In the consolidation process of preparing the government-wide financial statementsa.interfund transfers between governmental funds are consolidated and eliminatedc.interfund borrowings between governmental and proprietary funds are totaled up and netted outb.internal balances between governmental and proprietary funds are eliminatedd.all of the above55.Proprietary fund financial statementsa.are prepared using the economic resources measurement focusc.classify all funds as major or nonmajorb.include a Statement of Activitiesd.all of the above56.The Proprietary Funds Statement of Net Assets classifies net assets asa.restricted and unrestrictedc.designated and undesignatedb.invested in capital assets net of related debt; reserved and unreservedd.invested in capital assets net of related debt; restricted and unrestricted57.The required government-wide financial statements include thea.Balance Sheet and Statement of Activitiesc.Statement of Activities and Statement of Net Assetsb.Reconciliation Schedule, Statement of Net Assets and Statement of Cash Flowsd.Six-step Conversion Worksheet, Statement of Activities and Statement of Net Assets58.The government-wide Statement of Net Assetsa.displays the net cost of providing governmental servicesc.classifies net assets as invested in capital assets, net of related debt; reserved; or unreservedb.displays a separate column for governmental activities, business-type activities, total primary government and component unit datad.all of the above59.Which of the following are allocated when preparing the government-wide Statement of Activities?a.Depreciation expense for general infrastructurec.Depreciation expense for assets associated with identified functionsb.Interest expense on general obligation bondsd.All indirect expenses60.The government-wide Statement of Activities requires revenues to be identified asa.either general or programc.either exchange or nonexchangeb.either operating or nonoperatingd.either governmental or business-type61.The government-wide Statement of Activities a.presents the net expense or revenue of the governmental and business-type activities of the primary governmentc.presents the net expense or revenue of the governmental and business-type activities of each component unitb.presents the net expense or revenue of each fund of the primary governmentd.both a and c62.Required Supplementary Information for the financial reporting model includesa.Management’s Discussion and Analysisc.Budgetary Comparison Schedulesb.information about defined benefit pension plan fundingd.all of the above63.In what account would the General fund record a loan to an Enterprise fund?a.Tax Anticipation Notes Payablec.Due to Other Fundsb.Due from Other Fundsd.Fund Balance64.A proprietary fund would record inventory usinga.the purchase methodc.either a or bb.the consumption methodd.none of the above65.If the purchase method of recording inventory is used and there is a large amount of inventory on hand at fiscal year end, the inventory woulda.be recorded as a liabilityc.be recorded as a prepaid expenseb.not require an entryd.be recorded as an asset with an offsetting reserve of fund balance66.A governmental fund would record the annual premium for liability insurance ina.an expense accountc.an amortized premium accountb.a prepaid asset accountd.both a and b67.Noncurrent assets are recorded ina.alphabetical orderc.the General Fundb.Enterprise fundsd.both b and c68.Which of the following would be classified as a restricted asseta.General fund designates $100,000 for city hall expansion projectc.General fund designates unrestricted donationb.Enterprise fund designates $30,000 for purchase of equipmentd.Enterprise fund designates revenues for repayment of revenue bond principal and interest69.A street light could be classified asa.a capital assetc.part of a network of assetsb.infrastructured.all of the above70.Inexhaustible capital assets area.depreciated over the anticipated useful lifec.depreciated under the modified approachb.recorded as infrastructured.not depreciated71. Which of the following is NOT required under the modified approach to reporting infrastructure?a.Estimate of annual replacement cost of infrastructure at established condition levelc.Complete condition assessment of infrastructure every three yearsb.Estimate of annual funding needed to maintain and preserve infrastructure at established condition leveld.Current inventory of infrastructure assets72.An Enterprise fund would record the payment of debt service principal in what account?a.Bonds Payable (long-term liability)c.Other Financing Usesb.Debt Service Principal Expenditured.Due to Other Funds73.An accrued interest liability is recorded at fiscal year-end for outstanding interest on bonds ina.a Debt Service fundc.an Enterprise fundb.a Cash with Fiscal Agent fundd.none of the above74.A deferred revenue account is used to recorda.revenue that has not been received and is unearnedc.revenue that has been received but is unearnedb.unamortized premiumsd.unrealized gains and losses75.The General fund would record the amount it owes the Utility fund for electricity in what account?a.Internal Balancesc.Electric Expenseb.Due to Utility Fundd.Advance to Utility Fund76.The General fund would record the issuance of general obligation bonds as aa.debit to General Obligation Bonds Payablec.credit to General Obligation Bonds Payableb.debit to Other Financing Sourcesd.none of the above77.Term bonds area.generally issued to achieve level debt servicec.classified as long-term if they have a take-out agreement b.a current liability because they have a call featured.issued with the entire amount of principal due at the same time78.Compensated absences should be recorded as a liabilitya.at the start of each fiscal year for the estimated value of the annual benefitc.when employees are compensated for sick timeb.when earned if employees will be paid for unused vacation time upon retirementd.when employees are compensated for either sick time or vacation time79.A government should record a claims and judgments liability whena.a lawsuit is filedc.the amount of the claim can be estimatedb.it is probable a claim will be paidd.both b and c80.A state requires local governments to provide free health care to homeless individuals that meet state guidelines and provides funding for the program. The local government will record these monies as a(n)a.exchange transaction for heath carec.government-mandated nonexchange transactionb.imposed nonexchange transactiond.voluntary nonexchange transaction81.The state government requires a city to clean up a toxic waste site and provides $3,000,000 to assist with the clean up. The city will record the $3,000,000 grant from the state whena.the site is cleaned upc.the monies are received from the stateb.the grant is awarded and eligibility requirements have been metd.either b or c, whichever is first82.Eligibility requirements may includea.required characteristics of recipientsc.contingenciesb.time requirementsd.all of the above83.A citizen donates $5,000,000 to fund construction of a new public recreational center with the requirement that the city obtain additional donations in the amount of $3,000,000. The $5,000,000 will be recognized by the city whena.it is pledgedc.it is earnedb.it is paidd.the additional $3,000,000 in donations are obtained84.A city utility receives a donation that is restricted for a specific purpose. The donation will be recorded asa.deferred revenuec.restricted net assets until expended for the purposeb.revenue when receivedd.both b and cThis donation is a(n)a.exchange-like transactionc.voluntary nonexchange transactionb.escheat of propertyd.imposed tax revenue86.A corporate income tax is a(n)a.imposed nonexchange revenuec.derived tax revenueb.government-mandated nonexchange transactiond.voluntary nonexchange transaction87.Property taxes are recognized as available in the current fiscal year if they will be received within a.the fiscal yearc.60 days after fiscal year endb.30 days after fiscal year endd.90 days after fiscal year end60 days after fiscal year-end. The amount of property tax revenue to be recorded for the fiscal year is a.$5,950,000c.$6,300,000b.$6,000,000d.$6,650,00089.A property tax levy of $10,000,000 was 90% collected on the date that it became delinquent. The original estimate of uncollectible was 5% and is revised to 2% on the remaining $1,000,000 delinquent property taxes to be collected. The entry to adjust the amount of estimated uncollectible taxes on the delinquent date will require aa.debit to Property Tax Revenue of $480,000c.credit to Allowance for Uncollectible Property Taxes Delinquent for $500,000b.credit to Allowance for Uncollectible Property Taxes Current for $480,000d.credit to Allowance for Uncollectible Property Taxes Delinquent for $20,00090.The city estimates that $3,000,000 in sales tax revenue has been collected at the time of the underlying exchange transactions and will be available to pay governmental expenditures when it is remitted by the end of the month. The entry to record this information willa.debit Deferred Revenue for $3,000,000c.credit Sales Tax Revenue for $3,000,000b.credit Deferred Revenue for $3,000,000d.credit Sales Tax Receivable for $3,000,00091.A citizen pays a quarterly estimate of personal income tax to the city. This quarterly estimate will be recorded by the city asa.credit to Deferred Revenuec.credit to Cashb.debit to Income Tax Revenuesd.credit to Income Tax Revenues92.A woman traveling on business checks out of her hotel room and pays the hotel bill that includes $18 in city hotel taxes that are used to pay off debt to construct a convention center. The hotel taxes of $18 will be recorded by the city whena.the hotel room is reservedc.the hotel bill is paid b.the hotel bill is preparedd.none of the above93.A dog owner pays a dog license fee to the local village where he resides. The village will record the dog license fee revenue on a.the date the dog license notice is mailedc.the date the dog licenses become delinquentb.the due date for renewal of dog licensesd.the date that the dog owner pays the fee94.The General fund receives a state appropriation of $2,000,000 that is required by law to be used to distribute nutritional supplements to all pregnant women who apply and meet certain income requirements. The General fund will recognize the $2,000,000 appropriation whena.the state appropriation is enactedc.the entire $2,000,000 is spent on eligible applicantsb.the pregnant women apply for the supplementsd.when available and eligible pregnant women are identified95.Service-type special assessment billings for garbage collection by a city will be recorded asa.a debit to Property Taxes Receivablec.a credit to Garbage Collection Revenueb.a credit to Special Assessments Receivabled.no entry is required96.A refundable customer deposit of $150 is paid to a city utility fund that will record it asa.a credit to Cashc.a credit to Customer Deposit Revenueb.a credit to Customer’s Deposits Payable from Restricted Assetsd.a credit to Other Financing Sources97.Expenses area.recorded in governmental funds using the modified accrual method of accountingc.recorded in proprietary funds using the accrual method of accountingb.recorded in proprietary funds when paidd.never recorded in fiduciary funds98.The General fund transfers $500,000 to the Debt Service fund for principal and interest payments on long-term debt. This General fund would recorda.a debit to Due from Debt Service fundc.a credit to Nonreciprocal Interfund Transfersb.a debit to Other Financing Uses – Operating Transfers Outd.a debit to Nonreciprocal Interfund Transfers99.The General fund makes a residual equity transfer $50,000 to an Internal Service fund to purchase fleet equipment. This is an example of a(n)a.quasi-external transfer of fundsc.nonreciprocal transfer of capitalb.reciprocal interfund loand.due to other funds100.A county bills and collects property taxes from property holders for the county property tax, the local school property tax, and the local transportation authority property tax. When taxes are paid by taxpayers, the transaction to record the initial receipt of cash will be recorded in thea.General fundc.Special Revenue fundb.Agency fundd.Private-Purpose Trust fund101.The budget serves as a blueprint fora.planningc.evaluationb.controld.all of the above102.The city Park Permanent fund spends $2,000,000 for public park improvements. This payment will be recorded in the Park Permanent fund as a debit to the following account:a.Encumbrancec.Expenditureb.Expensed.Cash103.An unusual, nonrecurring expenditure is recorded ina.Expendituresc.Appropriationsb.Miscellaneous Expendituresd.Other Financing Uses104.The city estimates revenues will be $18,300,000 for the next fiscal year and the City Council authorizes spending of $19,000,000. The entry to record the budget willa.decrease Budgetary Fund Balancec.increase Budgetary Fund Balanceb.decrease Appropriationsd.increase Expenditures105.The village estimates revenues of $17,000,000 and will sell a tract of public land for $1,500,000 during the next fiscal year. The Village Council authorizes general government spending of $16,800,000 and also approves the city water utility budget that estimates water sales at $2,000,000 and expenses of $1,900,000. The entry to record the budget General fund willa.debit Estimated Revenues for $18,500,000c.debit Estimated Revenues for $19,000,000b.debit Estimated Other Financing Sources for $1,500,000d.debit Estimated Revenues for $20,500,000106.At the end of the fiscal year Revenues were $36,400,000. Estimated Revenues were recorded at the beginning of the fiscal year for $35,200,000. The entry to close Revenues and Estimated Revenues at the end of the fiscal year will record aa.credit to Revenues of $36,400,000c.debit to Budgetary Fund Balance of $1,200,000b.credit to Estimated Revenues of $36,400,000d.credit to Budgetary Fund Balance of $1,200,000107.A Capital Projects fund receives $30,000,000 in proceeds of general obligation bonds and contracts for the construction of a new public safety department building for $29,000,000. The unexpended balance of $1,000,000 will be reflected in what account?a.Encumbrances c.Expendituresb.Building Fundsd.Unreserved Fund Balance
Not-for-profit health care organization financial statements include a a. Statement of Cash Flows c. Statement of Revenues, Expenses, and Changes in…
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