ACCT 4421 Exam 1 Questions and Answers

ACCT 4421 Exam 1 Questions and
Answers

non-spendable funds - ANSWER-not in spendable form (inventories) or must remain
intact (principal of permanent fund)

restricted funds - ANSWER-by their providers, constitutional provisions, or by
enabling legislation

committed funds - ANSWER-by a formal action of the govt's highest level of
decision-making authority; contractual obligations; can be redeployed

assigned funds - ANSWER-intent to use resources for specific purpose (but can be
moved around)

unassigned funds - ANSWER-residual, available for any purpose

fund hierarchy applies to - ANSWER-BS of governmental type funds

basis for accounting determines - ANSWER-when transactions should be recorded

full accrual - ANSWER-revenues recognized when earned and expenses recognized
when incurred

cash basis - ANSWER-revenue recorded when payment is received and expense is
recorded when cash is paid (when $$ changes hands)

modified accrual - ANSWER-revenues recognized when measurable and available,
expenditures when incurred

available - ANSWER-Collectible within the current period or soon enough thereafter
to be used to pay current liabilities

governmental funds - ANSWER-General Fund
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Permanent Funds

proprietary funds - ANSWER-Internal Service Funds
Enterprise Funds

fiduciary funds - ANSWER-- Custodial Funds
- Pension Trust Funds
- Investment Trust Funds
- Private-Purpose Trust Funds