ACC 410 ACC410 Quiz 6 (Strayer)

ACC 410 Quiz 6

This quiz consist of 30 multiple choice questions. The first 15 questions cover the material in Chapter 10. The second 15 questions cover the material in Chapter 11. 

A governmental entity receives a gift of cash and investments with a fair value of $200,000.  The donor specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested.  The $200,000 gift should be accounted for in which of the following funds?

Previously a city received a $1 million gift, the income from which was restricted to support maintenance of city-owned parks.  During the current year the endowment earned $70,000 of which $50,000 was transferred to the City Park Special Revenue Fund. On the year-end financial statements, the endowment fund would report, as a result of these transactions, a fund balance (net assets) of:

Previously a city received a $1 million gift, the income from which was restricted to support maintenance of city-owned parks.  During the current year the endowment earned $70,000 of which $50,000 was transferred to the City Park Special Revenue Fund. On the year-end fund financial statement, the endowment fund would report revenues of:

What basis of accounting is used to account for transactions of a governmental private-purpose trust fund?

The Schedule of Changes in Long-Term Obligations contains an account Net Pension Obligation.  Which of the following describes the event that gave rise to this account?

Which of the following activities of a governmental entity should be accounted for in a fiduciary fund?

A plan’s unfunded actuarially accrued liability is the excess of

Cedar City has a permanent fund that reported current year investment earnings (realized and unrealized) of $80,000.  The endowment principal is $800,000 and the city council has adopted a policy of considering only the inflation adjusted rate of return to be available for transfer to the recipient fund.  During the current year the Council declared the inflation-adjusted rate of return to be 8%.  How much revenue would be recognized in the permanent  fund?

Permanent funds are classified as

At the beginning of the year, the permanent fund of  Rapid City had an investment portfolio with a historical cost of $200,000 and a fair value of $220,000.  There were no purchases or sales of securities during the year.  At year end the portfolio had a fair value of $240,000.  At the end of the year Rapid City will account for this increase in fair value in which of the following ways?

In previous years, Center City had received a $400,000 gift of cash and investments.  The donor had specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested.  During the current year, the earnings from this gift were $24,000.  The earnings from this gift should generally be considered revenue to which of the following funds?

Required disclosure by a government General Fund related to its pension plan does NOT include which of the following?

A defined contribution pension plan is one in which the employer agrees to which of the following?

Previously a city received a $1 million gift, the income from which was restricted to support maintenance of city-owned parks.  During the current year the endowment earned $70,000 of which $50,000 was transferred to the City Park Special Revenue Fund. On the year-end financial statements, the special revenue fund will report

The City of Highland Hills receives a federal grant to assist in nutrition (feeding) programs for senior citizens.   Senior citizens whose income is below a specified amount (the amount was specified by the Federal government) are eligible to participate in the program.  Monthly checks of $100 (this amount was specified by the Federal government) will be mailed to eligible senior citizens.  The proceeds of this grant should be accounted for in which of the following funds of the City?

The City created a legally separate entity to operate a County Hospital.  The City Council appoints a voting majority of the board of the Hospital.  The City cannot impose its will on the Hospital and there is no potential for a financial benefit or financial burden to the City.  In what manner would the Hospital be included in the City’s Basic Financial Statements?

The City created a legally separate Port Authority.  Members of the board of the Port Authority are elected in general city elections.  The Port Authority receives no tax dollars; it is supported entirely by user fees.  The Port Authority determines its budget, sets user fees, and has the power to issue bonded debt.  In what manner would the Port Authority be included in the City’s Basic Financial Statements?

A Comprehensive Annual Financial Report for the City of Highland Hills need not include which of the following sections?

Which of the following is NOT a necessary characteristic of a component unit?

Which of the following statements is not a required part of the General Basic Financial Statements of the City of Highland Hills?

Which of the following is NOT required for a special purpose local government to be considered a primary government?

The City created a legally separate Port Authority.  Members of the board of the Port Authority are elected in general city elections.  The Port Authority receives no tax dollars; it is supported entirely by user fees.  The Port Authority determines its budget, sets user fees, and has the power to issue bonded debt.  The Authority would be considered a

The City created a legally separate Housing Authority to provide low-income housing to residents of the City.  The City issues debt for the Housing Authority in the name of the City, but the Housing Authority is responsible for repayment of the debt.  The Housing Authority is governed by a board composed of all 5 members of the City Council.  Actions can be taken by Authority upon receiving an affirmative vote by a simple majority of the board.  In what manner would the Authority be included in the City’s Basic Financial Statements?

Fund financial statements for Fiduciary Funds include which of the following?

The introductory section of a CAFR does NOT include which of the following?

The County Commission appoints a voting majority of the members of the Board of a particular organization.  The County Commission cannot impose its will upon the organization.  There is no potential for the organization to provide any financial benefit to the County nor is there is any potential for the organization to impose any financial burden on the county.  The organization is an example of a:

Fund Financial Statements include which of the following for a governmental fund?

Which of the following is NOT a necessary condition for a governmental entity to be considered fiscally independent?

Fund Financial Statements include which of the following for a proprietary fund?

Government-wide financial statements include which of the following?