ACCT 567 Midterm Exam

1. (TCOs A and B) Fiduciary funds are to use which of the following measurement and basis of accounting? (Points : 5)

2. (TCOs A and B) Funds other than the General Fund are required to be considered to be a major fund when (Points : 5)

3. (TCOs A and B) Which of the following is most correct with regard to Management’s Discussion and Analysis? (Points : 5)

4. (TCOs B and C) With regards to budgetary reporting by governmental entities, which of the following is not a true statement? (Points : 5)

5. (TCOs B and C) The proper journal entry to record an encumbrance would include which of the following? (Points : 5)

6. (TCOs B and C)) Capital assets that are used by an enterprise fund should be accounted for in the following fund? (Points : 5)

7. (TCO E) When a government acquires general fixed assets under a capital lease agreement, how should the asset be recorded in the government-wide financial statements? (Points : 5)

8. (TCO E) Which of the following projects would usually be accounted for in a capital projects fund? (Points : 5)

9. (TCO E) Which of the following statements is a true statement regarding the reporting of debt service funds? (Points : 5)

10. (TCO D) Under GASB Statement No. 33, when would a special revenue fund be considered to have satisfied the eligibility requirement of a reimbursement type federal grant? (Points : 5)

1. (TCO E)You are in a staff meeting with the city controller and one of your colleagues was quoted as follows: “Capital projects funds are established by a government to account for all plant or equipment acquired by construction.” Do you agree with this statement? Why or why not? (Points : 30)

2. (TCOs A and B)How are the major funds of a state or local government determined by a governmental entity? (Points : 30

3. (TCO D) The City of Norton received a gift of $3,500,000 from a group of local residents on April 1, 2012 and signed an agreement that the funds would be invested on a permanent basis and the income would be used to purchase artifacts for the city museum. The following transactions took place during the fiscal year ended Dec 31, 2012