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NOVA ACC 219 - ACC 219 Quiz 3

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ACC 219 Quiz 3Student: ___________________________________________________________________________1. Which of the following activities would be most appropriately recorded by an agency fund?A. Deposits held for customers of a city-owned electric utility.B. Assets held for special assessment bondholders when the city is secondarily liable for the bonds.C. Assets held for employees' federal and state withholding taxes.D. Assets held for investment, the earnings from which are used for maintenance of the City Cemetery.2. Which of the following accounts is least likely to be used by a tax agency fund?A. Cash.B. Taxes receivable for other funds and units.C. Due to other funds and units.D. Revenues.3. An agency fund accounts for assets held by a government for the long-term in the capacity of a trusteefor an individual, organization, other fund, or other government.True False4. Public Employee Retirement Systems should utilize the modified accrual basis of accounting.True False5. The single audit concept refers toA. Financial and performance audits, and attestation engagements.B. Audits to determine efficiency and economy.C. All audits of state and local government reporting entities.D. Audits following the Single Audit Act of 1984 (with 1996 Amendments) and the revised OMBCircular A-133.16. The scope paragraph of an independent auditor's report on a financial audit of a local governmentA. Specifies the statutes the auditor determined to be relevant to the financial activities of thegovernment.B. Specifies the financial statements that the auditor has examined.C. States that all applicable accounting records were located and examined.D. States that the examination was made in accordance with generally accepted auditing standards.7. An auditor would not render an opinion on a (an)A. Audit to determine whether the entity has adhered to specific compliance requirements applicable toa major program.B. Financial audit of financial statements.C. All of the above.D. Performance audit.8. Current FASAB standards distinguish intragovernmental assets from governmental assets and entityassets from nonentity assets.True False9. Federal government agencies prepare a management's discussion and analysis (MD&A) to be includedin their general purpose federal financial report.True False10. In federal government accounting, recording the estimated amount of equipment prior to actually placingan order or entering into a contract is called a (an)A. Obligation.B. Apportionment.C. Allotment.D. CommitmentA certain federal agency placed an order for office supplies at an estimated cost of $14,400. Later in thesame fiscal year these supplies were received at an actual cost of $14,800. Assume commitmentaccounting is not used by this agency.211. When the order is received the required journal entry (or entries) will affect the accounts shown in whatnet amounts:A. Budgetary Accounts: $14,400; Proprietary Accounts: $14,800B. Budgetary Accounts: $400; Proprietary Accounts: $14,800C. Budgetary Accounts: $14,400; Proprietary Accounts: $14,400D. Budgetary Accounts: $0; Proprietary Accounts: $14,80012. Not-for-profit organizations should be conservative and record pledges as support (contributions) onlywhen received in cash.True False13. A statement of functional expenses is not required of all voluntary health and welfare organizations.True False14. Temporarily restricted net assets are released from restrictionsA. When funds are returned to the donor.B. When they are converted to permanently restricted net assets.C. At the end of each fiscal year.D. As assets are spent for the purposes intended by the donor.15. An NPO incurred $10,000 in management and general expenses in the current fiscal year. In theorganization's statement of activities prepared in conformity with FASB standards, the $10,000 would bereported asA. A deduction from program revenue.B. Program services expenses.C. A reduction of permanently restricted assets.D. Supporting services expenses.16. Accounting standards for NPOs requireA. Capitalization of collections.B. Full accrual accounting.C. Fund accounting.D. Modified accrual accounting.3ACC 219 Quiz 3 Key1. Which of the following activities would be most appropriately recorded by an agency fund?a. Deposits held for customers of a city-owned electric utility.b. Assets held for special assessment bondholders when the city is secondarily liable for the bonds.CAssets held for employees' federal and state withholding taxes.d. Assets held for investment, the earnings from which are used for maintenance of the CityCemetery.Content: ConceptLevel: MediumWilson - Chapter 08 #182. Which of the following accounts is least likely to be used by a tax agency fund?a. Cash.b. Taxes receivable for other funds and units.c. Due to other funds and units.DRevenues.Content: ConceptLevel: EasyWilson - Chapter 08 #203. An agency fund accounts for assets held by a government for the long-term in the capacity of atrustee for an individual, organization, other fund, or other government.FALSEAgency funds are used when the government holds assets temporarily as an agent for an individual,organization, other fund, or other government, not for a long period of time.Content: ConceptLevel: EasyWilson - Chapter 08 #214. Public Employee Retirement Systems should utilize the modified accrual basis of accounting.FALSEGASB standards provide that public employee retirement systems (PERS) use the full accrual basisof accounting.Content: ConceptLevel: EasyWilson - Chapter 08 #125. The single audit concept refers toa. Financial and performance audits, and attestation engagements.b. Audits to determine efficiency and economy.c. All audits of state and local government reporting entities.DAudits following the Single Audit Act of 1984 (with 1996 Amendments) and the revised OMBCircular A-133.Content: ConceptLevel: MediumWilson - Chapter 11 #166. The scope paragraph of an independent auditor's report on a financial audit of a local governmenta. Specifies the statutes the auditor determined to be relevant to the financial activities of thegovernment.b. Specifies the financial statements that the auditor has examined.c. States that all applicable accounting records were located and examined.DStates that the examination was made in accordance with generally accepted auditing standards.Content: ConceptLevel: MediumWilson - Chapter 11 #2227. An auditor would not render an opinion on a (an)a. Audit to determine whether the entity has adhered to


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