Problem 1: Governmental units use which fund type to account for services provided to the general public on a user-charge basis?
A. Permanent fund
B. Enterprise fund
C. General fund
D. Internal service fund
Problem 2: Proprietary funds utilize what basis of accounting?
A. Cash
B. Accrual
C. Modified accrual
D. Budgetary
Problem 3: Funds that are used to account for activities similar to those often engaged in by profit-seeking businesses are:
A. capital project funds
B. special revenue funds
C. proprietary funds
D. agency funds
Problem 4: The tax agency fund of Fulton County collected $6,000,000 for a school district, $3,000,000 for the county general fund and $4,000,000 for a municipality. County general fund employees handle the collections and a 3% collection fee is charged all units except the county. The total amount of revenue recognized by the county general fund would be:
A. $3,090,000
B. $3,000,000
C. $2,910,000
D. $3,300,000
Problem 5: The City of Sycamore has investments in bonds. These bonds have an amortized cost of $998,000 and a market value of $1,001,000. The market value is quoted and available in the financial press. The original cost of the bonds was $996,000. The par value at maturity will be $1,000,000. The amount at which the investments would be reported is:
A. $ 1,000,000
B. $ 998,000
C. $ 996,000
D. $ 1,001,000
Problem 6: Ford County levies for its General Fund $1,000,000 in property taxes. In addition, the county is responsible for collecting $2,000,000 in property taxes for the consolidated school district and $500,000 in property taxes for a town within the county. 2% of all taxes levied are expected to be uncollectible. When recording the levies in an agency fund, what amount would Ford County record as Taxes Receivable for Other Governments - Current and Due to Other Governments?
A. $3,500,000
B. $2,500,000
C. $3,430,000
D. $2,450,000
Problem 7: When a purchase order is issued under a Capital Projects Fund, how should the transaction be recorded?
A. Debit Expenditures and credit Vouchers Payable
B. Debit Encumbrances Control and credit Vouchers Payable
C. Debit Expenditures and credit Reserve for Encumbrances
D. Debit Encumbrances Control and credit Reserve for Encumbrances