CGFM Exam 2 – Governmental Accounting, Financial Reporting, and Budgeting Practice Exam

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• What is a characteristic of special revenue funds?
• Which of the following accurately describes a restricted fund balance?
• When are amendments to the budget performed?
• Which type of funds account for special revenue sources with specific expenditure purposes?
• In an agent pension plan, which statement is true?
• Which method of accounting for inventory is preferred for government-wide statements?
• What type of resources and obligations appear on the Balance Sheet for Governmental Funds?
• What is used in the units-of-production method for estimating costs charged for landfill operation?
• What is the distinguishing characteristic of Private-purpose Trust Funds?
• Under the purchase method of inventory, which account is debited when supplies are received?
• What is included in the non-spendable fund balance?
• Which of the following best describes object classification?
• Which account would you debit to record a revenue transaction in governmental accounting?
• What is the term for expenses in Fiduciary Funds?
• What defines an assigned fund balance?
• In governmental accounting, where are taxes levied for debt service reported?
• What journal entries are required when goods or services are received?
• What defines a Cost Sharing pension plan?
• Which of the following is true regarding Agency Funds?
• What is the primary focus of the journal entry involving expenditures in governmental accounting?
• What are the different methods of classification in governmental accounting?
• What is the GASB formula for the Statement of Net Position?
• How should the Tax Anticipation Note (TAN) of $200,000 from a local bank be recorded?
• What is the general accounting entry for recognizing expenditures in a governmental fund?
• How is a committed fund balance defined?
• Restricted Net Position refers to which of the following?
• Imposed nonexchange transactions include which of the following?
• Under what condition does a purchase order or contract create a liability?
• What are the typical components classified under Other Financing Sources in a governmental fund?
• What is the primary purpose of the Statement of Net Position?
• Fiduciary Funds are held for whom?
• What would be the correct fund classification for donations aimed strictly at supporting a library?
• Which of the following is considered an operating expense in governmental accounting?
• What is the main feature of a Defined Contribution plan?
• What defines "Non-spendable" in terms of fund balance classification?
• What are considered other fund uses?
• Which of the following is NOT a budgetary account in a governmental fund?
• Which item is NOT part of the non-spendable fund balance?
• What entry is made to recognize revenue transferred from the General Fund to the Debt Service Fund for debt payments?
• In what context is a Combining Statement of Changes in Assets and Liabilities required?
• Why might a legal requirement lead to the creation of Enterprise funds?
• What financial statement is associated with Fiduciary Funds?
• What are the estimated charges and liabilities for a landfill that has accepted 10% of its capacity?
• What financial characteristic is associated with Zero-coupon Bonds?
• What does GASB's classified format require?
• Which statements are required for Proprietary Funds?
• What is the main difference between the consumption and purchase methods of inventory?
• What are inter-fund reimbursements?
• Is the encumbrance procedure always necessary for salaries and wages?
• How many categories of fund balance are recognized in governmental accounting?
• What should be recorded for the payment of $770,000 on accounts payable?
• What distinguishes capital projects funds from other fund types?
• What type of fund is established if a donation is made where the principal is not expendable?
• What is one of the operating revenues listed for Business-type activities?
• What is the correct entry for the collection of current taxes totaling $2,700,000?
• Deferred taxes are reported on the balance sheet as what?
• What is the required supplementary information for Pension Funds?
• How are Net Position categories for Proprietary Funds typically reported?
• Which account should be credited when receiving the collection of sales tax?
• What are the three primary categories of funds in governmental accounting?
• What is the primary source of funding for capital projects in governmental accounting?
• Which fund type is primarily intended to support ongoing operations of the government?
• Which fund accounts for financial resources intended for ongoing operations?
• Which classification of fund balance would a Permanent Fund be at the end of the fiscal year?
• What does GASB require by stating 'an all-inclusive format'?
• Which category includes both operating activities and financing activities in cash flow statements?
• What is the purpose of recording inter-fund services?
• Which classifications can a fund balance be categorized into?
• Which of the following pairs is included as GASB required financial statements?
• What does the consumption method of inventory recognize when supplies are acquired?
• Which of the following describes revenues in governmental accounting?
• What role does depreciation play in the preparation of the government-wide statement of net position?
• When a purchase order (PO) is issued, how does the government recognize this commitment?
• Which of the following is true about Deferred Serial Bonds?
• Which aspect of financial performance is highlighted by the Statement of Net Position?
• What must occur for expenditures to be recorded in governmental accounting?
• Are Agency Funds included in the Statement of Changes in Net Position?
• What statement is required for Agency Funds in managing assets and liabilities?
• What is the definition of General Long-Term Debt?
• The Debt Service Fund is primarily characterized by which of the following?
• Which statement best describes the Statement of Activities?
• What is a Derivative Instrument?
• Which aspect is specifically enhanced by Government-wide Financial Statements?
• What is the budgetary comparison schedule used for?
• When are revenues recognized in governmental funds?
• How does GASB require operating revenues and operating expenses to be displayed?
• What journal entry should be made to record a Property Tax Levy of $3,265,306 with an estimated uncollectible amount of 2%?
• What is the definition of inter-fund transfers?
• What issue do Government-wide Financial Statements aim to resolve?
• What are derived taxes?
• How is estimated revenue that is not yet realized generally recorded?
• Which classification would include resources allocated for public benefit derived from trust agreements?
• What type of account is used to reserve funds for encumbrances in governmental accounting?
• When considering the impact of capital acquisitions, how are they treated in the statement of net position?
• What is one of the four types of serial bonds that has first payment delayed for more than one year?
• What is the GASB formula for the Balance Sheet?
• Which categories are included in the government-wide Statement of Net Position?
• What term describes capital assets not associated with proprietary or fiduciary funds?
• Which fund is used for funds that are restricted for use in debt service?
• In governmental accounting, what would be the result of crediting Other Financing Uses?
• What does "required supplementary information" typically include for fiduciary funds?
• Which statement is not included in the financial statements for Proprietary Funds?
• Which funds require a separate column on the Statement of Net Position?
• What are inter-fund services provided and used?
• When are actual revenues recorded in accounting?
• What must be done annually regarding landfill capacity costs?
• What types of items are categorized as other financing sources?
• Which of the following is a category of Pension Reporting?
• What is the effect of debiting Encumbrances Control in the financial statements?
• What term is used for restrictions imposed by the government on nonexchange transactions?
• In the classified statement format, what is emphasized for liabilities?
• Which statement is required for Fiduciary Funds?
• What is the first category of reporting for Other Post Employment Benefits (OPEB)?
• Which of the following is NOT a type of Fiduciary Fund?
• What does fund balance represent in governmental accounting?
• What is the correct entry for recording sales tax of $1,350,000 and $60,000 of sales tax received in January 2017?
• Which of the following is one of the required government-wide financial statements per GASB?
• How is revenue recorded from a collection of $1,450,000?
• Under GASB 34, when are Enterprise funds required?
• Which fund classification is used for resources limited to a specific purpose other than debt service or capital projects?
• What do the financial statements for business-type activities primarily include?
• How should a purchase order for materials and supplies costing $826,000 be recorded?
• What should be recorded to account for the repayment of Tax Anticipation Notes and interest?
• In governmental accounting, what is the primary purpose of the General Fund?
• What formula is used to prepare fund assets for the government-wide statement of net position?
• What types of costs are NOT typically recorded as encumbrances?
• What measurement focus and basis of accounting do Enterprise Funds use?
• What are Fiduciary Funds' revenues referred to as?
• What is the accounting entry for the City Council's approval of the fiscal year budget for the General Fund?
• What is the purpose of the Schedule of Changes in Net Pension Liability and Related Ratios?
• What type of accounting entity primarily deals with private purposes rather than public benefit?
• When calculating the statement of net position, what financial activity is included for capital assets?
• How are Internal Service Funds represented on the Statement of Net Position?
• What types of expenditures are classified under governmental fund expenditures?
• In the financial statement accounts, which entry is made when city departments issue purchase orders for goods and services?
• What is the key difference between committed and restricted fund balances?
• What are permanent funds designed to account for?
• What does functional classification reflect in governmental activities?
• Which category of revenues would include receipts from taxation in governmental accounting?
• What is the purpose of capital projects funds?
• Which of the following entries reflects deductions from gross pay?
• What is the journal entry for a purchase order or contract issued?
• Which schedule outlines employer contributions for pension funds?
• In the transaction where the General Fund services the Special Revenue Fund, which entry reflects this reimbursement?
• Which of the following is NOT a category required by GASB for cash flow statements for Proprietary Funds?
• What distinguishes Enterprise Funds from other funds?
• Proprietary Funds use which measurement focus and basis of accounting?
• What defines a Defined Benefit Plan?
• How is an increase in revenues budget recorded?
• What is the primary purpose of Agency Funds in government accounting?
• How are the entries for encumbrances primarily made?
• What represents the inflow of resources that can be used for governmental purposes?
• If the General Fund buys stamps that should have been charged to the Special Revenue Fund, how is the reimbursement recorded?
• What is the primary purpose of activity classification within a governmental department?
• What do debt service funds specifically account for?
• What financial statement is associated with Governmental Funds?
• Which of the following best describes 'Transfers Out' in governmental accounting?
• Which of the following is NOT a method of classification in governmental accounting?
• How are expenditures defined in governmental accounting?
• How are Fiduciary Funds reported in financial statements?
• What signifies a committed fund balance?
• Which of the following is NOT one of the five categories of fund balances?
• What represents common forms of nonexchange transactions?
• What is the entry for the annual payment made to a water utility?
• Which fund is set up for donations made to benefit individuals or organizations, where the principal may be expendable or not?
• Which category of Net Position is typically not available for use by the government for general purposes?
• Under which condition may a rainy day fund be classified as committed?
• Why is it important to estimate uncollectible taxes when recording tax levies?
• What does the GASB indicate about rainy day funds?
• Which of the following is NOT a type of governmental fund?
• What must be subtracted from capital assets when preparing the government-wide statement of net position?
• What is the correct journal entry for recording estimated revenues?
• What is NOT a requirement for Proprietary Funds under GASB?
• What is the calculation for Net Investment in Capital Assets?
• Which of the following accurately describes the responsibilities of an agent pension plan?
• Which of the following are the two types of Proprietary Funds?
• What is the journal entry for recording encumbrances control in governmental accounting?
• Which three financial statements are required for Proprietary Funds?
• When the water utility fund sells water to the General Fund, how is it recorded?
• How should the repayment of a loan be recorded in terms of expenditures and liabilities?
• When making payments for Accounts Payable of $135,000 and due to the Federal Government of $30,000, how should this be recorded?
• What type of expenditures does character classification include?
• What is unique about Internal Service Funds compared to other funds?
• What do Agency Funds account for?
• What financial resources does the general fund account for?
• In terms of financial reporting, how do Proprietary Funds mainly differ from Governmental Funds?
• In preparing the statement of activities, which type of information is primarily reported?
• What is the entry needed for recording receipt of materials and supplies with a total invoice of $820,300?
• What does GASB Statement 54 classify in its categories?
• Where are long-term debt proceeds typically recorded?
• If a donation is made to benefit the government or citizenry and the principal is expendable, which fund is established?
• What is the entry related to the employer's share of Social Security tax and Medicare tax?
• Which of the following typically constitutes fund revenues?
• What does the term 'encumbrances' refer to in governmental accounting?
• How should the collection of delinquent taxes amounting to $330,000, including accrued interest and penalties, be recorded?
• What type of activities do Enterprise Funds serve?
• How is interest accrued for a receipt or payment calculated?
• What constitutes fund revenues?
• What defines deferred taxes in governmental accounting?
• The government-wide financial statement primarily includes:
• The principal characteristic of an Internal Service Fund is to:
• What characterizes a Permanent Fund in governmental accounting?
• Which type of serial bond features total principal repayable in equal installments over a specified time?
• What method of accounting does not require adjustments to supplies expenses for government-wide statements?
• What is meant by reporting by Plan in the context of OPEB?
• What is the nature of the annual transfer from the General Fund to a Debt Service Fund?
• What is the characterization of obligations incurred under a specific budget in government accounting?
• What are the two primary methods of accounting for inventory?
• Which of the following is a characteristic of a Capital Projects Fund?
• What is the purpose of character classification in governmental accounting?
• What distinguishes a restricted fund balance?
• What are the two types of reporting required for Pension Funds?
• What is the primary purpose of a Permanent Fund?
• Which classification method involves separating expenditures by the organization involved?
• Which factor does NOT affect the capital asset calculation in the government-wide statement of net position?
• What must be done with the proceeds from the sale of capital assets when preparing the statement of net position?
• Which of the following reflects the outcome of the Statement of Activities?
• Which of the following are eligibility requirements for nonexchange transactions?
• When are appropriations considered to be expended?
• Which entry should be made to close the outstanding liabilities with the federal government?
• What component is NOT included in the calculation of capital assets for the government-wide statement?