PA 504 Final Exam Answers

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PA 504 Final Exam Answers

Question1: (TCO E) Which of the following are best described as proprietary funds?

I. Internal Service funds; Il. Pension funds: III Enterprise funds.

Question 2: (TCO E) Activities that produce goods or services to be provided to other departments or other governmental units would be reported in which fund?

Question3: (TCO E) An internal service fund provided services to a General Fund department. At the time of billing, the debit entry in the General Fund would be:

Question 4 :( TCO E) In the Statement of Net Assets for proprietary funds, GASB requires a classified format where current assets, noncurrent assets, current liabilities, and noncurrent liabilities are presented:

Question 5 :( TCO E) Which of the following is true regarding proprietary fund accounting?

Question 6 :( TCO F) Which is true regarding the basis of accounting for fiduciary funds?

Question 7 :( TCO F) Which of the following is true regarding agency funds?

Question 8 :( TCO F) Which of the following statements is not required for pension trust funds?

Question 9 :( TCO F) Where is the actuarial liability shown in a Comprehensive Annual Financial Report for a pension trust fund?

.10. Question: (TCO F) Which of the following is not true regarding post-employment benefit plans other than pension plans?

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11. Question. (TCO G) Which of the following would not be considered a special-purpose government for financial reporting purposes?

12. Question: (TCO G) Which of the following is true regarding accounting and financial reporting for special-purpose entities?

13. Question: (TCO G) Assume a government is determined to be a special-purpose government engaged in business-type activities only. Which of the following financial statements would be required?

Question 14 :( TCO G) Assume a government is a special-purpose government engaged in only one governmental activity. Which financial statements would be required?

Question 15 :(TCO G) Public colleges and universities that choose to report as special purpose entities engaged only in business-type activities would have which of the following financial statements?

Essay Questions:

Question16: (TCO E) What are some of the factors that should be considered when deciding if a particular undertaking by a government should be accounted for as an Enterprise Fund or as part of general governmental activities?

Question17. (TCO F) Define Private-purpose Trust Funds. Define Permanent Funds. Contrast the purpose of these two types of funds and/or the accounting for these two types of funds.

Question18. (TCO G) A public college had tuition and fees for the year ended June 30, 2007 in the amount of $45,000,000. Scholarships, for which no services were required, amounted to $2,500,000. Graduate assistantships, for which services were required, amounted to $2,300,000. First, compute the amount to be reported by the college for net tuition and fee revenue. Second, state the source of the rule that you relied on to make

the computations. Third, on what statement would the net tuition be reported?

Question 19: (TCO D) A state or local government's financial reporting should include both Fund statements and government-wide statements. Please address the following questions.

On what basis of accounting should the government wide statements be prepared?

On what basis of accounting should the fund statements for the governmental funds be prepared?

Briefly, what is meant by a worksheet approach to a conversion and what is meant by a dual-track approach to recording the data?

How can a worksheet approach be used to convert the fund statements to government-wide statements?

Question 20: (TCO A) There are three accounting standard setting bodies for U.S. commercial, private not-for-profit, state and local governments, and for the federal government. Those three are the Financial Accounting

Standards Board (FASB), the Governmental Accounting Standards Board (GASB), and the Federal Accounting Standards Advisory Board (FASAB). For this question, please focus just on the Federal Accounting Standards Advisory Board (FASAB). Explain first what organizations and/or entities should follow the guidance issued by the FASAB. Second, explain briefly how the FASB establishes standards for those organizations and/or entities. Third, discuss briefly the interplay of the American Institute of Certified Public Accountants (AICPA) with the FASAB.