ACCT 4421 Module 1 Quiz Exam
Questions Complete Solutions
New Update
Which of the following rule-making authorities would establish accounting standards for
the University of Wisconsin (a public university)? - Answers -✔✔ the GASB
Who may impose constraints for the use of a committed fund balance? - Answers -✔✔
the government's highest level of decision-making authority
A city issues $20 million of general obligation bonds to improve its streets and roads. In
accordance with the bond covenants, it committed $1 million to help ensure that it is
able to meet its first payment of principal and $100,000 for its first payment of interest.
The amount of liability that the city should report in its debt service fund is - Answers -
✔✔ $0
The City of Round Lake receives a contribution of $20 million. The donor stipulates that
the money is to be invested. The principal is to remain intact, and the investment
proceeds are to be used to support a city-owned nature center. The city should report
the contribution in a - Answers -✔✔ permanent fund.
Rule 203 of the AICPA's Code of Professional Conduct pertains to - Answers -✔✔
authorities designated to establish accounting standards.
The city of Alpine incurred the following costs during the year in its property tax
collection department:
Purchase of computer equipment $10,000
Salaries and wages $400,000
Purchase of electricity from the city-owned electric utility $40,000
Purchase of supplies, all of which were used during the year $10,000
As a consequence of these transactions, the amount that Alpine should report as
expenditures in its general fund is - Answers -✔✔ $460,000
The primary objective of a not-for-profit organization or a government is to - Answers -
✔✔ provide services to constituents.
The FASB is to the GASB as - Answers -✔✔ a brother is to a sister.
Which of the following is not one of the GASB's financial reporting objectives? -
Answers -✔✔ ensuring that budgeted revenues are equal to or exceed budgeted
expenses
Questions Complete Solutions
New Update
Which of the following rule-making authorities would establish accounting standards for
the University of Wisconsin (a public university)? - Answers -✔✔ the GASB
Who may impose constraints for the use of a committed fund balance? - Answers -✔✔
the government's highest level of decision-making authority
A city issues $20 million of general obligation bonds to improve its streets and roads. In
accordance with the bond covenants, it committed $1 million to help ensure that it is
able to meet its first payment of principal and $100,000 for its first payment of interest.
The amount of liability that the city should report in its debt service fund is - Answers -
✔✔ $0
The City of Round Lake receives a contribution of $20 million. The donor stipulates that
the money is to be invested. The principal is to remain intact, and the investment
proceeds are to be used to support a city-owned nature center. The city should report
the contribution in a - Answers -✔✔ permanent fund.
Rule 203 of the AICPA's Code of Professional Conduct pertains to - Answers -✔✔
authorities designated to establish accounting standards.
The city of Alpine incurred the following costs during the year in its property tax
collection department:
Purchase of computer equipment $10,000
Salaries and wages $400,000
Purchase of electricity from the city-owned electric utility $40,000
Purchase of supplies, all of which were used during the year $10,000
As a consequence of these transactions, the amount that Alpine should report as
expenditures in its general fund is - Answers -✔✔ $460,000
The primary objective of a not-for-profit organization or a government is to - Answers -
✔✔ provide services to constituents.
The FASB is to the GASB as - Answers -✔✔ a brother is to a sister.
Which of the following is not one of the GASB's financial reporting objectives? -
Answers -✔✔ ensuring that budgeted revenues are equal to or exceed budgeted
expenses
