MBA 624 Exam 1 UPDATED ACTUAL Questions and CORRECT Answers
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Course
MBA 624
Institution
MBA 624
MBA 624 Exam 1 UPDATED ACTUAL
Questions and CORRECT Answers
CHAPTER 2 - CORRECT ANSWER-
Which of the following is characteristic of governmental fund accounting and financial
reporting?
a. The inclusion of only financial assets and related liabilities
b. The inclusion of all financial and...
MBA 624 Exam 1 UPDATED ACTUAL
Questions and CORRECT Answers
CHAPTER 2 - CORRECT ANSWER✔✔-
Which of the following is characteristic of governmental fund accounting and financial
reporting?
a. The inclusion of only financial assets and related liabilities
b. The inclusion of all financial and capital assets, as well as related debt
c. The inclusion of all financial assets, as well as any capital assets and related debt that are
related to General Fund functions
d. Depreciation is reported in all governmental funds that use capital assets - CORRECT
ANSWER✔✔- a. The inclusion of only financial assets and related liabilities
Financial assets include
a. capital assets that can be sold
b. cash, investments and receivables
c. only cash and other governmental fund assets that have been converted to cash during the
current year or early enough in the next year to pay the current year's liabilities
d. only cash and other governmental resources that have been converted to cash by the end of
the current reporting period - CORRECT ANSWER✔✔- b. cash, investments and
receivables
All of the following are considered governmental funds except
a. a Special Revenues Fund
b. a Capital Projects Fund
c. a Permanent Fund
d. an Internal Service Fund - CORRECT ANSWER✔✔- d. an Internal Service Fund
Which of the following definitions best describes the term related liabilities?
a. Related liabilities are any fund liabilities that are either current or long-term by nature
, b. Related liabilities refer primarily to general government liabilities that are related to the
current year and are normally paid from available expendable financial assets
c. Related liabilities refer to governmental fund short-term and long-term liabilities that are
either paid from available expendable financial resources
d. Related liabilities are liabilities that are reported in the general long-term liabilities non-
fund accounts - CORRECT ANSWER✔✔- b. Related liabilities refer primarily to general
government liabilities that are related to the current year and are normally paid from available
expendable financial assets
Which of the following transactions would not be reported in a county's General Fund?
a. The purchase of 10 new public safety vehicles
b. The annual lease payment for the copiers in the county courthouse
c. The collection of property taxes that are past due from previous years
d. General property taxes a county collects on behalf of municipalities located within the
county - CORRECT ANSWER✔✔- d. General property taxes a county collects on behalf of
municipalities located within the county (this is reported in an AGENCY FUND)
The transactions associated with a Community Development Block Grant that must be used
to finance rehabilitation of privately owned housing in an economically depressed
neighborhood of the city typically would be reported in which of the following funds and/or
nonfund accounts?
a. The General Fund only
b. The General Fund and the General Capital Assets accounts
c. A Special Revenue Fund only
d. A Capital Projects Fund only - CORRECT ANSWER✔✔- c. A Special Revenue Fund
only
The city of Hannah has established a trust to provide resources to offset the costs of
maintenance of the city-owned cemetery. The majority of the resources of this trust will be
cemetery plot sales and donations from families of those buried in the cemetery. The trust
corpus is nonexpendable in nature. Transactions associated with this trust activity would most
likely be accounted for in
a. the General Fund
b. a Special Revenue Fund
c. a Private-Purpose Trust Fund
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