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Question 1

4 out of 4 points
What basis of accounting is used to account for transactions of a government
permanent fund?
Answer
Selected
Answer:

Modifed accrual basis of
accounting
!orrect
Answer:

Modifed accrual basis of
accounting
Question "
4 out of 4 points
!iti#ens within a defned geographic area of $ill !it% created a special
assessment district to facilitate the construction of sidewal&s $ill !it% was
responsible for overseeing the entire construction pro'ect $ill !it% issued
bonds in its own name to pa% the contractor for the construction $owever(
$ill !it% was not responsible in an% manner for the bonds )he bonds were
secured b% the special assessments which would be levied against the
propert% within the special assessment district !ollections of special
assessments would be recorded in which of the following funds of $ill !it%?
Answer
Selected
Answer:

Agenc%
*und
!orrect
Answer:

Agenc%
*und
Question +
4 out of 4 points
Several %ears ago( a donor gave ,- million to the !it% and specifed that the
principal was to be &ept intact but the earnings were to be used to support
operations of the cit% par&s .uring the current %ear( the !it% earned
,+//(/// on the gift )o what t%pe of fund should the !it% transfer
accountabilit% for the ,+//(/// earnings
Answer
Selected
Answer:

A special revenue
fund
!orrect
Answer:

A special revenue
fund
Question 4
4 out of 4 points
0reviousl% a cit% received a ,1 million gift( the income from which was
restricted to support maintenance of cit%1owned par&s .uring the current
%ear the endowment earned ,2/(/// of which ,-/(/// was transferred to the
!it% 0ar& Special 3evenue *und 4n the %ear1end fund fnancial statement(
the endowment fund would report the ,-/(/// transferred to the Special
3evenue *und as:
Answer
Selected
Answer:

A nonreciprocal
transfer out
!orrect
Answer:

A nonreciprocal
transfer out
Question -
/ out of 4 points
)he !it% of $ighland $ills receives a federal grant to assist in nutrition
5feeding6 programs for senior citi#ens )he !it% will select the contractors to
provide the feeding and approve the participants in the program )he
proceeds of this grant should be accounted for in which of the following funds
of the !it%?
Answer
Selected
Answer:

Agenc% *und
!orrect
Answer:

Special 3evenue
*und
Question 7
4 out of 4 points
.uring the fscal %ear ended .ecember +1( "//1( the $ighland !it% 8eneral
*und contributed ,49 million to a defned beneft pension plan for its
emplo%ees 4n *ebruar% "2( "//"( $ighland made an additional ," million
contribution related to the "//1 pension contribution re:uirements )he
actuariall% determined contribution amount for "//1 is ,-" million )he
amount of pension e;penditure recogni#ed b% $ighland !it% 8eneral *und for
"//1 should be:
Answer
Selected
Answer:

, -/
million
!orrect
Answer:

, -/
million
Question 2
/ out of 4 points
0reviousl% a cit% received a ,1 million gift( the income from which was
restricted to support maintenance of cit%1owned par&s .uring the current
%ear the endowment earned ,2/(/// of which ,-/(/// was transferred to the
!it% 0ar& Special 3evenue *und 4n the %ear1end fnancial statements( the
endowment fund would report( as a result of these transactions( a fund
balance 5net assets6 of:
Answer
Selected
Answer:

,1(///(/
//
!orrect
Answer:

,1(/"/(/
//
Question 9
4 out of 4 points
0reviousl% a cit% received a ,1 million gift( the income from which was
restricted to support maintenance of cit%1owned par&s .uring the current
%ear the endowment earned ,2/(/// of which ,-/(/// was transferred to the
!it% 0ar& Special 3evenue *und 4n the %ear1end fund fnancial statement(
the endowment fund would report revenues of:
Answer
Selected
Answer:

,2/(//
/
!orrect
Answer:

,2/(//
/
Question <
4 out of 4 points
A governmental entit% receives a gift of cash and investments with a fair
value of ,"//(/// )he donor specifed that the earnings from the gift must
be used to beautif% cit%1owned par&s and the principal must be re1invested
)he ,"//(/// gift should be accounted for in which of the following funds?
Answer
Selected
Answer:

0ermanent
fund
!orrect
Answer:

0ermanent
fund
Question 1/
4 out of 4 points
0reviousl% a cit% received a ,1 million gift( the income from which was
restricted to support maintenance of cit%1owned par&s .uring the current
%ear the endowment earned ,2/(/// of which ,-/(/// was transferred to the
!it% 0ar& Special 3evenue *und 4n the %ear1end fnancial statements( the
special revenue fund will report
Answer
Selected
Answer:

,-/(/// =onreciprocal
)ransfer >n
!orrect
Answer:

,-/(/// =onreciprocal
)ransfer >n
Question 11
/ out of 4 points
*inancial assets held b% a governmental investment pool should be valued at
Answer
Selected
Answer:

Amorti#ed cost
!orrect
Answer:

*air value on the date of the fnancial
statements
Question 1"
4 out of 4 points
)he !it% of $ighland $ills receives a federal grant to assist in nutrition
5feeding6 programs for senior citi#ens Senior citi#ens whose income is
below a specifed amount 5the amount was specifed b% the *ederal
government6 are eligible to participate in the program Monthl% chec&s of
,1// 5this amount was specifed b% the *ederal government6 will be mailed
to eligible senior citi#ens )he proceeds of this grant should be accounted for
in which of the following funds of the !it%?
Answer
Selected
Answer: Agenc%
*und
!orrect
Answer:

Agenc%
*und
Question 1+
4 out of 4 points
At the beginning of the %ear( the permanent fund of 3apid !it% had an
investment portfolio with a historical cost of ,"//(/// and a fair value of
,""/(/// )here were no purchases or sales of securities during the %ear At
%ear end the portfolio had a fair value of ,"4/(/// At the end of the %ear
3apid !it% will account for this increase in fair value in which of the following
wa%s?
Answer
Selected
Answer:

!redit >nvestment >ncome(
,"/(///
!orrect
Answer:

!redit >nvestment >ncome(
,"/(///
Question 14
4 out of 4 points
A defned contribution pension plan is one in which the emplo%er agrees to
which of the following?
Answer
Selected
Answer:

)he emplo%er agrees to ma&e specifc pa%ments to a specifed
pension plan with no guarantee of a specifc pension amount to
be paid to the emplo%ee
!orrect
Answer:

)he emplo%er agrees to ma&e specifc pa%ments to a specifed
pension plan with no guarantee of a specifc pension amount to
be paid to the emplo%ee
Question 1-
/ out of 4 points
What basis of accounting is used to account for transactions of a
governmental private1purpose trust fund?
Answer
Selected
Answer:

Modifed accrual basis of
accounting
!orrect
Answer:

*ull accrual basis of
accounting