ACCT 567 Week 4 Midterm Exam
1. (TCOs A and B) Fiduciary funds are to use which of the following measurement and basis of accounting? (Points : 5)
Economic resource measurement focus and accrual basis of accounting.
Current financial resources measurement focus and accrual basis of accounting.
Economic resources measurement focus and modified accrual basis of accounting.
None of the above, the fiduciary funds have no revenues.
2. (TCOs A and B) Funds other than the General Fund are required to be considered to be a major fund when (Points : 5)
(A) total assets, liabilities, revenues, or expenditures/expenses of that fund constitute 10 percent of either the governmental or enterprise category.
(B) total assets, liabilities, revenues, or expenditures/expenses of that fund are at least 5 percent of the total of the governmental and enterprise category.
The conditions of either A or B exist.
The conditions of both A and B exist.
3. (TCOs A and B) Which of the following is most correct with regard to Management’s Discussion and Analysis? (Points : 5)
Both state and local governments and federal agencies are required to provide a MD&A.
Federal agency financial reports are required to provide a MD&A.
State and local government agencies are required to provide a MD&A.
Both state and local government and federal agencies are encouraged, but not required to provide a MD&A.
4. (TCOs B and C) With regards to budgetary reporting by governmental entities, which of the following is not a true statement? (Points : 5)
While GASB standards guide the format of the comparison, it does not require governments to maintain budgetary accounts.
GASB standards require governmental entities to present a comparison of budgeted and actual results for the General Fund and special revenue funds with legally adopted budgets.
Budgetary accounts are required to appear in the...