Question 1. Which of the following fund types of a governmental unit has/have current financial resources as a measurement focus?
General Fund Enterprise Fund
a. Yes Yes
b. Yes No
c. No No
d. No Yes
Question 2. Which fund should record the proceeds of a federal grant made to assist in financing the future construction of a police training facility?
a. General Fund
b. Special Revenue Fund
c. Capital Projects Fund
d. Enterprise Fund
Question 3. Which fund should record the receipts from a special tax levied to pay principal and interest on general obligation bonds issued to finance the construction of a city hall?
a. Debt Service Fund
b. Capital Projects Fund
c. Enterprise Fund
d. Special Revenue Fund
Question 4. Several years ago, a city established a fund to retire general obligation bonds issued for the purpose of constructing a new police station. This year the city made a $50,000 contribution to that fund from its general revenues. The fund also realized $15,000 in revenue from its investments. The bonds due this year were retired. This year's transactions require accounting recognition in which funds?
a. General Fund and Internal Service Fund
b. Debt Service Fund and Special Revenue Fund
c. Debt Service Fund and General Fund
d. Capital Projects Fund and Debt Service Fund
Question 5. Which fund would recognize a transaction in which a municipal electric utility paid $150,000 for new equipment out of its earnings?
a. Enterprise Fund
b. General Fund
c. Capital Projects Fund
d. Special Revenue Fund
Question 6. Which of the following funds of a governmental unit records the acquisition of a fixed asset as an expenditure rather than as an asset?
a. Internal Service Fund
b. Pension Trust Fund
d. General Fund
Question 7. Which of the following funds of a governmental unit uses the modified accrual basis of accounting?
a. Internal Service Fund
b. Enterprise Fund
c. Pension Trust Fund
d. Debt Service Fund
Question 8. Under the modified accrual basis of accounting for a governmental unit, revenues should be recognized in the accounting period in which they ____.
a. are earned
b. are earned or levied and become available and measurable
c. are earned and collectible
d. are collected