Multiple Choice Quiz

Choose the best answer for each of the following questions and enter the identifying letter in the space provided.

1		A government entity recognizes depreciation as an expense in its:
			A)	Enterprise funds and internal service funds
			B)	Internal service funds and general capital assets account group
			C)	General fund and enterprise funds
			D)	Enterprise funds and capital projects funds
2		A governmental entity realized gains and losses on securities in its library private-purpose trust fund. In the absence of specific instructions from the donor or state statutory requirements, these amounts are accounted for in:
			A)	The general fund
			B)	The debt service fund
			C)	The library principal nonexpendable trust fund
			D)	The library revenues expendable trust fund
3		The activities of a motor vehicle pool that provides and services vehicles for the official use of a governmental entity's employees are accounted for in:
			A)	An agency fund
			B)	The general fund
			C)	An internal service fund
			D)	A special revenue fund
			E)	Some other fund
4		The activities of a governmental entity's employee pension plan that is financed by both employer and employee contributions are accounted for in:
			A)	An agency fund
			B)	An internal service fund
			C)	A special revenue fund
			D)	A private-purpose trust fund
			E)	Some other fund
5		The City of Medina collects property taxes for the benefit of the local sewer, park, and school districts and periodically remits collections to those governmental entities. This activity is accounted for in:
			A)	An agency fund
			B)	The general fund
			C)	An internal service fund
			D)	A special revenue fund
			E)	Some other fund
6		Customers' deposits that may not be expended for operating purposes are displayed as restricted assets in the balance sheet of a governmental entity's:
			A)	Internal service fund
			B)	Agency fund
			C)	Trust fund
			D)	Enterprise fund
7		In the statement of cash flows for a governmental entity's enterprise fund, temporary investments of funds received from borrowings for plant assets construction are reported with cash flows from:
			A)	Capital and related financing activities
			B)	Operating activities
			C)	Noncapital financing activities
			D)	Investing activities

Question 8 is based on the following data relating to Lely Township: Printing and binding equipment used for servicing all of Lely's departments and agencies, on a cost-reimbursement basis $100,000 Equipment used for supplying water to Lely's residents 900,000 Amounts receivable for completed sidewalks to be paid for in installments by affected property owners 950,000 Cash received from federal government, restricted to highway maintenance, which must be accounted for in a separate fund 995,000

8		What amount must be accounted for in a special revenue fund or funds?
			A)	$995,000
			B)	$1,050,000
			C)	$1,095,000
			D)	$1,945,000

Question 9 is based on the following data relating to Lely Township: Printing and binding equipment used for servicing all of Lely's departments and agencies, on a cost-reimbursement basis $100,000 Equipment used for supplying water to Lely's residents 900,000 Amounts receivable for completed sidewalks to be paid for in installments by affected property owners 950,000 Cash received from federal government, restricted to highway maintenance, which must be accounted for in a separate fund 995,000

9		What amount might be accounted for in an internal service fund?
			A)	$100,000
			B)	$900,000
			C)	$950,000
			D)	$995,000

Question 10 is based on the following data relating to Lely Township: Printing and binding equipment used for servicing all of Lely's departments and agencies, on a cost-reimbursement basis $100,000 Equipment used for supplying water to Lely's residents 900,000 Amounts receivable for completed sidewalks to be paid for in installments by affected property owners 950,000 Cash received from federal government, restricted to highway maintenance, which must be accounted for in a separate fund 995,000

10		What amount might be accounted for in an enterprise fund?
			A)	$100,000
			B)	$900,000
			C)	$950,000
			D)	$995,000