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a. Capital projects
b. Special revenue
c. General
d. Enterprise
a. Permanent fund
b. Investment trusts fund
c. Private-purpose trusts fund
d. Special revenue fund
During the current year, the Finn b. $1,000,000
Foundation, a nongovernmental not for-
profit organization, received a
$1,000,000 permanent endowment
from Chris. Chris stipulated that the
income must be used to provide
recreational activities for the elderly.
The endowment reported income of
$80,000 in the current year. What
amount of permanently restricted
contribution revenue should Finn report
at the end of the current year?
a. $1,080,000
b. $1,000,000
c. $ 80,000
d. $0
a. Proprietary activities
b. Fiduciary activities
c. Government activities
d. Enterprise activities
a. Endowment
b. Temporarily restricted
c. Permanently restricted
d. Unrestricted
Nongovernmental not-for-profit a. Statement of financial position,
organizations are required to provide statement of activities, statement of cash
which of the following external financial flows
statements?
Education $300,000
Fundraising 250,000
Mgmt & general 200,000
Research 50,000
a. $350,000
b. $450,000
c. $500,000
d. $800,000
Jonn City entered into a capital lease for a. General capital asset
equipment during the year. How should
the asset obtained through the lease be
reported in Jonn City's government-
wide statement of net assets?
a. $0
b. $10,000 increase
c. $40,000 increase
d. $50,000 increase
a. Consolidation
b. Cost method
c. Discrete presentation
d. Government-wide presentation
a. Operating revenues.
b. Nonoperating revenues.
c. Capital contributions.
d. Other financing sources.
What is the major difference between an a. The relationship between the amount
exchange transaction and a non- of value given and received.
exchange transaction for governmental
units?
a. $8,000
b. $11,000
c. $12,500
d. $14,500
Whitestone, a nongovernmental not-for- c. Report as income in Year 1
profit organization, received a
contribution in December, Year 1. The
donor restricted use of the contribution
until March, Year 2. How should
Whitestone record the contribution?
a. $12,000
b. $13,500
c. $14,000
d. $14,500
King City Council will be establishing a d. Enterprise fund.
library fund. Library fees are expected to
cover 55% of the library's annual
resource requirements. King has decided
that an annual determination of net
income is desirable in order to maintain
management control and accountability
over library. What type of fund should
King establish in order to meet their
measurement objectives?
Which of the following statements are d. The financial statements required for
required to be presented for special- enterprise funds, including MD&A and
purpose governments engaged only in RSI.
business-type activities (such as
utilities)?
a. $100,000
b. $400,000
c. $800,000
d. $900,000
a. $108,000
b. $100,000
c. $8,000
d. $0
How should operating expenses for a b. Change in unrestricted net assets.
nongovernmental not-for-profit
organization be reported?
a. $0
b. $100,000
c. $500,000
d. $600,000
A foreign subsidiary's functional Salaries Sales to
currency is its local currency, which has expense external customers
not experienced significant inflation. a. Yes Yes
The weighted average exchange rate for
the current year would be the
appropriate exchange rate for
translating
Salaries Sales to
expense external customers
a. Yes Yes
b. Yes No
c. No Yes
d. No No
a. Agency fund.
b. General fund.
c. Special revenue fund.
d. Private purpose trust fund.
a. Debt service.
b. Agency.
c. Private-purpose trust.
d. Pension trust.
Which format must an enterprise fund c. Direct method.
use to report cash flow operating
activities in the statement of cash flows?
a. Special revenue.
b. Permanent.
c. Private-purpose trust.
d. Agency.
Nack City received a donation of a d. May be capitalized, but it is not
valuable painting. Nack planned to add required, and depreciation is not
the painting to its collection and display required.
it in the protected exhibition area of city
hall. Nack had a policy that if such
donated art works were sold, the
proceeds would be used to acquire other
items for its collections. Which of the
following would be correct regarding the
donated painting?
a. Balance sheet.
b. Statement of cash flows.
c. Statement of retained earnings.
d. Income statement.
a. An art museum.
b. A shelter for the homeless.
c. A private foundation.
d. A public golf course.
Gridiron University is a private c. As a refundable advance.
university. A successful alumnus has
recently donated $1,000,000 to
Gridiron for the purpose of funding a
"center for the study of sports ethics."
This donation is conditional upon the
university raising matching funds within
the next 12 months. The university
administrators estimate that they have a
50% chance of raising the additional
money. How should this donation be
accounted for?
a. $200,000
b. $190,000
c. $100,000
d. $95,000
Gordon Ltd., a 100% owned British b. 1.55
subsidiary of a U.S. parent company,
reports its financial statements in local
currency, the British pound. A local
newspaper published the following U.S.
exchange rates to the British pound at
year end:
Current rate: $1.50
Historical rate (acquisition): 1.70
Average rate: 1.55
Inventory (FIFO): 1.60
a. 1.50
b. 1.55
c. 1.60
d. 1.70
a. As an expenditure.
b. Capitalize, depreciation is optional.
c. Capitalize, depreciation is required.
d. Capitalize, depreciation is not
permitted.
a. Interest expenditures.
b. Interest payable.
c. Interest expense.
d. Fund balance.
All of the following statements regarding a. The notes contain disclosures related
notes to the basic financial statements of to required supplementary information.
governmental entities are true, except:
a. $230,000
b. $248,000
c. $253,000
d. $271,000
a. $0
b. $2,000,000
c. $8,000,000
d. $10,000,000
How should unconditional pledges b. Pledges receivable, valued at their
received by a nongovernmental not-for- present values.
profit organization that will be collected
over more than one year be reported?
Grants to other
Organizations Depreciation
a. Yes Yes
b. Yes No
c. No No
d. No Yes
RST Charities received equities d. $115,000
securities valued at $100,000 as an
unrestricted gift. During the year, RST Equity security received $100,000
received $5,000 in dividends from these Change in market value 10,000
securities; at year end, the securities had FMV at year end 110,000
a fair market value of $110,000. By what Dividends received 5,000
amount did these transactions increase Total $115,000
RST's net assets?
a. $100,000
b. $105,000
c. $110,000
d. $115,000
a. $0
b. $840
c. $1,560
d. $2,400