Questions -

Q1. Under GASB standards, nonmajor funds are reported

A. In the management's discussion and analysis preceding the financial statements.

B. In aggregate amounts in a single column in the fund financial statements.

C. In a note disclosure following the financial statements.

D. In the government-wide financial statements.

Q2. Infrastructure assets and long-term liabilities issued to finance infrastructure should be reported in the

A. Letter of transmittal.

B. Fund financial statements.

C. Management's discussion and analysis.

D. Government-wide financial statements.

Q3. Which of the following kinds of information would not be provided by Management's discussion and analysis (MD&A)?

A. A narrative explanation of the contents of the CAFR.

B. A description of the government's financial condition.

C. A forecast of revenues and expenditures for the next three fiscal years.

D. A discussion of economic factors and the budget and tax rates approved for the next year.

Q4. A term that describes a government's ongoing ability and willingness to raise revenues, incur debt, and meet its financial obligations as they become due is

A. Financial condition.

B. Fiscal capacity.

C. Economic condition.

D. Financial position.

Q5. A recognizable signal of fiscal stress is

A. Total revenues from own sources increasing as a percent of total revenues for all sources.

B. Increasing population.

C. Declining property values.

D. An increasing ratio of total revenues to total expenditures.

Q6. A measure of whether the government lived within its means in the measurement year, or was required to use prior year resources to fund a portion of current year costs, or shifted the funding of some current year costs to future periods, is

A. Business-type activities revenues/business-type activities expenses.

B. Unrestricted net assets/total revenues.

C. Total revenues/total expenditures.

D. Total net assets (governmental activities and business-type activities) less total net assets at the beginning of the year.

Q7. In federal government accounting, recording the estimated amount of equipment prior to actually placing an order or entering into a contract is called a(an)

A. Obligation.

B. Apportionment.

C. Commitment.

D. Allotment.

Q8. Which of the following accounts used in state and local government accounting is most like the federal budgetary account "Undelivered Orders"?

A. Reserve for Encumbrance.

B. Expenditures.

C. Appropriations.

D. Encumbrances.

Q9. A certain federal agency placed an order for office supplies at an estimated cost of $14,400. Later in the same fiscal year these supplies were received at an actual cost of $14,800. Assume commitment accounting is not used by this agency. When the order is received the required journal entry (or entries) will affect the accounts shown in what net amounts?

A. Budgetary Accounts: $14,400; Proprietary Accounts: $14,400

B. Budgetary Accounts: $14,400; Proprietary Accounts: $14,800

C. Budgetary Accounts: $400; Proprietary Accounts: $14,800

D. Budgetary Accounts: $0; Proprietary Accounts: $14,800

Q10. Securities donated to an NPO should be recorded at the

A. Donor's recorded amount.

B. Fair market value at the date of the gift, or the donor's recorded amount, whichever is lower.

C. Fair market value at the date of the gift, or the donor's recorded amount, whichever is higher.

D. Fair market value at the date of the gift.

Q11. A local philanthropist pledged to make a donation of $100,000 to an NPO to be paid in five equal installments of $20,000 beginning in the next fiscal year. Under FASB standards the pledge would be recognized as

A. Support of $20,000 in each of the following five years.

B. Support of $20,000 in the year the pledge was made and $80,000 as deferred support.

C. Deferred support of $100,000 in the year the pledge was made.

D. Support of $100,000 in the year the pledge was made, discounted at an appropriate rate for future receipts.

Q12. Which of the following contributions would not have to be reported as an asset on the statement of financial position of a not-for-profit organization?

A. Land was donated to the Friends of the Forest Society for conversion into a nature trail.

B. The original courthouse was donated to the Historical Preservation Society that is converting the courthouse to a museum.

C. An art collector donated a famous oil painting to a local nongovernmental art museum for display in its exhibit hall.

D. A valuable coin collection was donated to the Youth for Conservation organization, which the organization plans to sell at current market prices.

Q13. A tax-exempt organization that receives its support primarily from a large number of individuals or corporations and a relatively small amount from investment income is called a

A. Public charity.

B. Private foundation.

C. Public foundation.

D. Voluntary health and welfare organization.

Q14. The income most likely to be considered unrelated business income of a human service organization that provides immunizations to children in the community is

A. Rental of extra space in the building.

B. Regular sale of sweatshirts with the organization's logo on it at a price considerably above cost.

C. Interest and dividend income on investments.

D. Gain on the sale of equipment no longer needed by the organization.

Q15. The Internal Revenue Service may impose intermediate sanctions on all of the following transactions between a not-for-profit organization and its executive officer except

A. Excessive compensation.

B. More than the fair rental value for property owned by the officer.

C. A bargain on the sale of assets.

D. Fringe benefits comparable to those given to all employees.