1 Which of the following accounts of a governmental unit is credited to close it at the end of the fiscal year? [removed] Reserve for Encumbrances [removed] Other Financing Sources-Transfers In [removed] Encumbrances Control [removed] Appropriations Control 2 In its Statement of Net Assets, a government reported: Assets of $90 million, including $30 million in capital assets (net) and liabilities of $50 million, including long-term debt of $15 million, all related to capital asset acquisition. The government also reported $5 million of net assets that were restricted for payment of debt service. The government's unrestricted net assets would be reported as: [removed] $10 million [removed] $25 million [removed] $20 million [removed] $30 million 3 A donor pledged $100,000 to the fund raising drive of a local government to assist its police officers in obtaining the latest technology. The pledge was made on July 16, 2008 but was conditioned on the government raising an additional $100,000 from other donors. By the fiscal year-end of June 30, 2009, the local government had raised only $5,000 from other donors. What entry would be made for the initial pledge by the local government during the year ended June 30, 2009? [removed] Debit a receivable and credit a revenue [removed] Debit a receivable and credit Fund Balance [removed] No entry [removed] Debit a receivable and credit deferred revenues, a liability 4 What are the three major sections of the Comprehensive Annual Financial Report? [removed] Introductory Section, Financial Section, Budgetary Comparison. [removed] Introductory Section, Financial Section, Statistical Section. [removed] Introductory Section, Financial Section, Reporting Infrastructure. [removed] Introductory Section, Financial Section, Management Discussion and Analysis. 5 When payrolls and other liabilities are incurred and must be paid before substantial amounts of cash will be collected, what type of short-term note is desirable and secured by a government's power to tax? [removed] Tax Relief Note Payable [removed] Tax Anticipation Note Payable [removed] Tax Budget Note Payable [removed] Tax Encumbrances Note Payable 6 What is a Special Revenue Fund? [removed] A fund created to account for all resources and revenues to be used for the construction or acquisition of capital assets [removed] A fund used to account for revenues from specific taxes or other revenue sources that by law are designated to finance particular activities of the government other than capital projects [removed] A fund used to account for revenues from general taxes or other revenue sources that by law are designated to finance general activities of the government [removed] A fund used to account for all revenue transactions of a governmental unit that are not accounted for in another fund 7 What type of serial bond schedules an increase each year in annual principal repayment approximately equivalent to the decrease in interest payments? [remo.

1. 1
Which of the following accounts of a governmental unit is
credited to close it at the end of the fiscal year?
[removed]
Reserve for Encumbrances
[removed]
Other Financing Sources-Transfers In
[removed]
Encumbrances Control
[removed]
Appropriations Control
2
In its Statement of Net Assets, a government reported: Assets of
$90 million, including $30 million in capital assets (net) and
liabilities of $50 million, including long-term debt of $15
million, all related to capital asset acquisition. The government
also reported $5 million of net assets that were restricted for
payment of debt service. The government's unrestricted net
assets would be reported as:
[removed]
$10 million
[removed]
$25 million
[removed]
$20 million
[removed]
$30 million
3
A donor pledged $100,000 to the fund raising drive of a local
government to assist its police officers in obtaining the latest
technology. The pledge was made on July 16, 2008 but was
conditioned on the government raising an additional $100,000
from other donors. By the fiscal year-end of June 30, 2009, the

2. local government had raised only $5,000 from other donors.
What entry would be made for the initial pledge by the local
government during the year ended June 30, 2009?
[removed]
Debit a receivable and credit a revenue
[removed]
Debit a receivable and credit Fund Balance
[removed]
No entry
[removed]
Debit a receivable and credit deferred revenues, a liability
4
What are the three major sections of the Comprehensive Annual
Financial Report?
[removed]
Introductory Section, Financial Section, Budgetary Comparison.
[removed]
Introductory Section, Financial Section, Statistical Section.
[removed]
Introductory Section, Financial Section, Reporting
Infrastructure.
[removed]
Introductory Section, Financial Section, Management
Discussion and Analysis.
5
When payrolls and other liabilities are incurred and must be
paid before substantial amounts of cash will be collected, what
type of short-term note is desirable and secured by a
government's power to tax?
[removed]
Tax Relief Note Payable
[removed]
Tax Anticipation Note Payable
[removed]
Tax Budget Note Payable

3. [removed]
Tax Encumbrances Note Payable
6
What is a Special Revenue Fund?
[removed]
A fund created to account for all resources and revenues to be
used for the construction or acquisition of capital assets
[removed]
A fund used to account for revenues from specific taxes or other
revenue sources that by law are designated to finance particular
activities of the government other than capital projects
[removed]
A fund used to account for revenues from general taxes or other
revenue sources that by law are designated to finance general
activities of the government
[removed]
A fund used to account for all revenue transactions of a
governmental unit that are not accounted for in another fund
7
What type of serial bond schedules an increase each year in
annual principal repayment approximately equivalent to the
decrease in interest payments?
[removed]
Irregular
[removed]
Deferred
[removed]
Annuity
[removed]
Regular
8
What is the effect on the General Funds’ unreserved fund
balance when capital assets are purchased during a year from
General Fund revenues?
[removed]
None of the above, capital assets must be purchased through a

4. capital projects fund
[removed]
Unreserved fund balance is decreased
[removed]
Unreserved fund balance is increased
[removed]
There is no effect, since one asset (cash) is replaced by another
(capital asset)
9
Which of the following choices regarding the government-wide
Statement of Net Assets is TRUE?
[removed]
The government-wide Statement of Net Assets includes all
resources entrusted to the government; including governmental,
proprietary and fiduciary
[removed]
A reporting entity (primary government plus component units)
total column is required
[removed]
The government-wide Statement of Net Assets reflects capital
assets, net of accumulated depreciation, for both governmental
and business-type activities
[removed]
The government-wide Statement of Net Assets must be prepared
in a classified format; that is, both assets and liabilities must be
separated between current and long-term categories
10
Governmental units use which fund type to account for services
provided to the general public on a user-charge basis?
[removed]
Internal service fund
[removed]
Permanent fund
[removed]
Enterprise fund
[removed]

5. General fund
11
The City of Lonesome Pines levied property taxes for the fiscal
year ended June 30, 2009 in the amount of $8,000,000. It is
estimated that 2% will not be collected. During the year ended
June 30, 2009, $7,200,000 in property taxes were collected. It is
estimated that $400,000 will be collected during the next 60
days, $240,000 will be collected after 60 days and $160,000
will not be collected. What is the maximum amount Lonesome
Pines can recognize as property tax revenue for the fiscal year
ended June 30, 2009 in its Governmental Funds Statement of
Revenues, Expenditures and Changes in Fund Balances,
assuming there were no unpaid property taxes at the end of the
previous year?
[removed]
$8,000,000
[removed]
$7,600,000
[removed]
$7,200,000
[removed]
$7,840,000
12
In 2008 a faculty member at a private college received a grant
from the National Science Foundation to conduct basic research
on tree frogs in the amount of $350,000. Expenses associated
with the grant totaled $225,000 in 2009. In the Statement of
Activities for 2009, the college should show:
[removed]
revenues of $225,000 and expenses of $225,000 in Unrestricted
Net Assets
[removed]
revenues of $350,000 and expenses of $225,000 in Temporarily
Restricted Net Assets
[removed]
revenues of $225,000 and expenses of $225,000 in Temporarily

6. Restricted Net Assets
[removed]
expenses of $ 225,000 in Unrestricted Net Assets and a decrease
in Temporarily Restricted Net Assets of $ 225,000
13
Assume a government is determined to be a special-purpose
government engaged in business-type activities only. Which of
the following financial statements would be required?
[removed]
Statement of Net Assets, Statement of Revenues, Expenses and
Changes in Net Assets, Statement of Cash Flows
[removed]
Statement of Net Assets and Statement of Activities
[removed]
Balance Sheet, Statement of Revenues, Expenditures and
Changes in end Balances
[removed]
Statement of Net Assets, Statement of Activities, Statement of
Cash Flows
14
When would a special revenue fund be deemed to have satisfied
the eligibility requirement of a reimbursement-type federal
grant under GASB Statement 33?
[removed]
Only as work is completed for a project
[removed]
When work has started for the project
[removed]
Only after work is completely finished for the project
[removed]
When a plan for use of the funds has been developed and
approved
15
If taxes or special assessments are levied by the General Fund
and then-transferred to the debt service fund, they are:
[removed]

7. included as transfers out in the General Fund but are not
budgeted as revenue in that fund
[removed]
recorded as revenues of the debt service fund
[removed]
included in the revenues budget of the general fund and
budgeted by that fund as transfers out to the debt service fund
[removed]
recorded as an expense and voucher payable by the general fund
and are recorded as a revenue and receivable by the debt service
fund.
16
A government had the following transfers reported in its
governmental funds Statement of Revenues, Expenditures and
Changes in Fund Balances: (1) a transfer from the General Fund
to a debt service fund in the amount of $l,000,000; (2) a transfer
from the General Fund to an enterprise fund in the amount of
$1,200,000; and (3) a transfer from the General Fund to an
internal service fund in the amount of $400,000. The amount
that would be shown as a transfer out in the governmental
activities column in the Statement of Activities would be:
[removed]
$1,400,000
[removed]
$1,200,000
[removed]
$2,600,000
[removed]
$800,000
17
In which fund type is interest on long term debt typically not
accrued, yet is recognized as an expenditure in the year in
which interest is legally due?
[removed]
Enterprise fund
[removed]

8. Debt service fund
[removed]
Internal service fund
[removed]
Pension fund
18
A public college had tuition and fees of $20,000,000.
Scholarships, for which no services were required, amounted to
$2,000,000. Graduate assistantships, for which services were
required, amounted to $1,000,000. The amount to be reported by
the public college as net tuition and fees would be:
[removed]
$19,000,000
[removed]
$18,000,000
[removed]
$20,000,000
[removed]
$17,000,000
19
Each of the following is one of the four classes into which
nonexchange transactions apply in accordance with GASB
Statement No. 33 EXCEPT:
[removed]
voluntary nonexchange transactions
[removed]
mandatory exchange transactions
[removed]
derived tax revenues
[removed]
imposed nonexchange revenues
20
The fund statements for governmental funds are presented
using:
[removed]
Economic Resources Measurement focus and the Modified

9. Accrual Basis of Accounting
[removed]
Economic Resources Measurement focus and the Accrual Basis
of Accounting
[removed]
Current Financial Resources Measurement focus and the
Modified Accrual Basis of Accounting
[removed]
Current Financial Resources Measurement focus and the
Accrual Basis of Accounting