Question 1

_____ Regarding external financial reporting for governmental units, which of the following financial statements is not presented in the fund-based statements?

Accepted Answer

A: c. Balance sheet-Proprietary Funds and Fiduciary Funds
 In the context of governmental accounting, fund-based financial statements are prepared to report on the financial position and results of operations for different types of funds within the governmental entity. There are three main categories of funds in governmental accounting: governmental funds, proprietary funds, and fiduciary funds.
a. Balance sheet-Governmental Funds: This statement is indeed part of the fund-based financial statements. It reports on the financial position of the governmental funds, which include the general fund, special revenue funds, capital projects funds, debt service funds, and permanent funds.
b. Balance sheet-Proprietary Funds: This statement is also part of the fund-based financial statements. Proprietary funds are used to account for a government's business-type activities (such as utilities and public transportation) and include enterprise funds and internal service funds.
c. Balance sheet-Proprietary Funds and Fiduciary Funds: While the balance sheet for proprietary funds is included in the fund-based financial statements, the balance sheet for fiduciary funds is not. Fiduciary funds are used to account for resources held by the government in a trustee or agency capacity for others and cannot be used to support the government's own programs. Therefore, the fiduciary funds' financial statements are not considered part of the fund-based financial statements but are instead presented separately.
d. None of the above: This option is incorrect because, as explained, the balance sheet for fiduciary funds is not included in the fund-based financial statements.
Therefore, the correct answer is c. Balance sheet-Proprietary Funds and Fiduciary Funds, as the fiduciary funds' financial statements are not part of the fund-based financial statements.

Question 2

_____ Regarding external financial reporting for governmental units, which of the following financial statements is not used in the fund-based statements?

Accepted Answer

The Statement of fiduciary activities-Fiduciary Funds is not used in the fund-based statements because it pertains to fiduciary funds, which are reported separately from the governmental funds in the external financial reporting of governmental units.

Question 3

_____ Regarding external financial reporting for governmental units, which of the following funds are excluded from the government-wide statements?

Accepted Answer

Fiduciary Funds are excluded from government-wide statements because they are not considered to be resources that are available to fund the government's own programs. These funds are held in a trustee or agency capacity for others and therefore are not reported in the governmental activities or business-type activities of the government-wide financial statements.

Question 4

_____ Regarding external financial reporting for governmental units, in the fund-based balance sheet, Internal Service Funds are

Accepted Answer

In governmental accounting, the fund-based financial statements include separate columns for different types of funds. Internal Service Funds, which are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the governmental unit, or to other governmental units, on a cost-reimbursement basis, are presented in their own separate column in the fund-based financial statements. This is to ensure that the financial information for these funds is clearly distinguished from governmental funds (like the General Fund and special revenue funds) and from Enterprise Funds, which are used to account for activities that are financed in whole or in part by fees charged to external users for goods or services.

Question 5

_____ Regarding external financial reporting for governmental units, in the government-wide Statement of Net Assets, Internal Service Funds are

Accepted Answer

The answer of _____ Regarding external financial reporting for governmental...

Question 6

_____ Regarding external financial reporting for governmental units, in the government-wide Statement of Net Assets, fiduciary activities are

Accepted Answer

Fiduciary activities are not presented in the government-wide Statement of Net Assets because these activities are not considered part of the government's own operations. They involve the government acting as a trustee or fiduciary for external parties, and therefore, their financial information is reported separately from the governmental and business-type activities.

Question 7

_____ Regarding external financial reporting for governmental units, in the fund-based balance sheet, fiduciary activities are

Accepted Answer

Fiduciary activities are presented in separate statements in the fund-based balance sheet for governmental units, as they involve resources held for the benefit of parties external to the government entity and are not part of the government's own financial activities.

Question 8

_____ Regarding external financial reporting for governmental units, a Statement of Cash Flows covering all activities is required at the

Accepted Answer

Governmental units are not required to prepare a Statement of Cash Flows for all activities at either the government-wide level or the fund-based reporting level. Only proprietary funds (enterprise and internal service funds) require a Statement of Cash Flows.

Question 9

_____	Regarding external financial reporting for governmental units, a Statement of Cash Flows covering business-type activities is required at the

Accepted Answer

A Statement of Cash Flows is required for proprietary funds, which are reported at the fund-based reporting level for business-type activities in governmental accounting.

Question 10

_____ Regarding external financial reporting for governmental units, the required reconciliations of certain fund-based amounts to government-wide amounts must be presented in the

Accepted Answer

The required reconciliations of fund-based amounts to government-wide amounts must be presented in the fund-based statements to provide a clear connection between the two types of financial reporting.

Question 11

_____ Regarding external financial reporting for governmental units, which of the following reconciliations from the fund-based statements to the government-wide statements must be presented?

Accepted Answer

The correct reconciliation for external financial reporting for governmental units is from the total fund balances of all governmental funds to the total net assets of all governmental funds and Internal Service Funds. This reconciliation is necessary because the fund-based statements (using the modified accrual basis) and the government-wide statements (using the accrual basis) report different aspects of the government's finances, and the inclusion of Internal Service Funds in the government-wide statements requires this specific reconciliation.

Question 12

_____ Regarding external financial reporting for governmental units, which of the following reconciliations from the fund-based statements to the government-wide statements must be presented?

Accepted Answer

The answer of _____	Regarding external financial reporting for governmental units,...

Question 13

_____	Regarding external financial reporting for governmental units, which of the following items would not appear in the required reconciliation involving the total fund balances-not the change in the total fund balances-for governmental activities?

Accepted Answer

Depreciation expense on general capital assets is related to the change in fund balances, not the total fund balances. The reconciliation involves items that affect the total fund balances, such as capital assets and long-term liabilities.

Question 14

_____	Regarding external financial reporting for governmental units, which of the following items would not appear in the required reconciliation involving the changes in fund balances for governmental activities?

Accepted Answer

All the items listed (A, B, C, D) are adjustments that reconcile the changes in fund balances for governmental activities in the external financial reporting for governmental units. Capital outlays, bond repayments, bond proceeds, and interest payments on bonds are all relevant financial activities that impact the fund balances and are considered in the reconciliation process to present the governmental activities accurately.

Question 15

_____ Regarding external financial reporting for governmental units, which of the following items would not appear in the required reconciliation involving the changes in fund balances for governmental activities?

Accepted Answer

Fiduciary funds are used to account for assets held by a governmental unit in a trustee capacity for others and therefore do not affect the governmental activities fund balances in external financial reporting.

Question 16

_____ Regarding external financial reporting for governmental units, which of the following account names is not used in the fund-based balance sheet for proprietary funds?

Accepted Answer

Retained earnings is not used in the fund-based balance sheet for proprietary funds.

Question 17

_____	Regarding external financial reporting for governmental units, the subclassification "invested in capital assets, net of related debt" would not be used in which of the following statements

Accepted Answer

The subclassification "invested in capital assets, net of related debt" is used in government-wide financial statements, not in fund-based financial statements. Government-wide statements provide a broader perspective of the government's overall financial position, including long-term assets and liabilities, whereas fund-based statements focus on specific governmental functions and activities, typically not accounting for capital assets and related debt in the same manner.

Question 18

_____	Regarding external financial reporting for governmental units, major funds would be reported in a separate column in which of the following statements?

Accepted Answer

Major funds are reported in a separate column in both the fund-based balance sheet for governmental activities and the fund-based balance sheet for proprietary activities.

Question 19

_____	Regarding external financial reporting for governmental units, "Required Supplementary Information" (RSI) would not include

Accepted Answer

Combining financial statements are not considered Required Supplementary Information (RSI); instead, they are part of the basic financial statements or additional supplementary information. RSI typically includes items like management's discussion and analysis (MD&A) and budgetary comparison statements, but not the detailed combining statements.

Question 20

_____The following data pertains to Lexx City:  How much should be accounted for in a Special Revenue Fund or Funds?

Accepted Answer

The answer of _____The following data pertains to Lexx City:...

Quiz 25: Governmental Accounting: The Special-Purpose Funds and Special General Ledger

_____ Regarding external financial reporting for governmental units, which of the following financial statements is not presented in the fund-based statements?

_____ Regarding external financial reporting for governmental units, which of the following financial statements is not used in the fund-based statements?

_____ Regarding external financial reporting for governmental units, which of the following funds are excluded from the government-wide statements?

_____ Regarding external financial reporting for governmental units, in the fund-based balance sheet, Internal Service Funds are

_____ Regarding external financial reporting for governmental units, in the government-wide Statement of Net Assets, Internal Service Funds are

_____ Regarding external financial reporting for governmental units, in the government-wide Statement of Net Assets, fiduciary activities are

_____ Regarding external financial reporting for governmental units, in the fund-based balance sheet, fiduciary activities are

_____ Regarding external financial reporting for governmental units, a Statement of Cash Flows covering all activities is required at the

_____ Regarding external financial reporting for governmental units, a Statement of Cash Flows covering business-type activities is required at the

_____ Regarding external financial reporting for governmental units, the required reconciliations of certain fund-based amounts to government-wide amounts must be presented in the

_____ Regarding external financial reporting for governmental units, which of the following reconciliations from the fund-based statements to the government-wide statements must be presented?

_____ Regarding external financial reporting for governmental units, which of the following reconciliations from the fund-based statements to the government-wide statements must be presented?

_____ Regarding external financial reporting for governmental units, which of the following items would not appear in the required reconciliation involving the total fund balances-not the change in the total fund balances-for governmental activities?

_____ Regarding external financial reporting for governmental units, which of the following items would not appear in the required reconciliation involving the changes in fund balances for governmental activities?

_____ Regarding external financial reporting for governmental units, which of the following items would not appear in the required reconciliation involving the changes in fund balances for governmental activities?

_____ Regarding external financial reporting for governmental units, which of the following account names is not used in the fund-based balance sheet for proprietary funds?

_____ Regarding external financial reporting for governmental units, the subclassification "invested in capital assets, net of related debt" would not be used in which of the following statements

_____ Regarding external financial reporting for governmental units, major funds would be reported in a separate column in which of the following statements?

_____ Regarding external financial reporting for governmental units, "Required Supplementary Information" (RSI) would not include

_____The following data pertains to Lexx City: How much should be accounted for in a Special Revenue Fund or Funds?