The City of Cal Maintains Several Fund Types

1] The city of Cal maintains several fund types. The following were among Cal's cash receipts during the current year:

What amount of these cash receipts should be accounted for in Cal's general fund?

A. $200,000

B. $0

C. $1,200,000

D. $1,000,000

[2] If a capital asset is donated to a governmental unit, the asset is accounted for in an enterprise fund, and eligibility requirements are met, it should be recorded

A. As a memorandum entry only.

B. At the donor's carrying amount as revenue.

C. At estimated fair value as revenue.

D. At the lower of the donor's carrying amount or estimated fair value as deferred revenues.

[3] Thornton County is required under state law to report its financial statements on a basis that conflicts with generally accepted governmental accounting principles. On which basis of accounting should Thornton County's financial statements be prepared?

A. Generally accepted governmental accounting basis only.

B. State law basis with supplemental disclosure of generally accepted governmental accounting reconciliation schedules.

C. Generally accepted governmental accounting basis with supplemental supporting schedules as necessary to report compliance with state law.

D. State law basis only.

[4] Kew City received a $15,000 000 federal grant to finance the construction of a center for rehabilitation of drug addicts. The proceeds of this grant should be accounted for in the

A. General fund.

B. Capital projects funds.

C. Trust funds.

D. Special revenue funds.

[5] Government financial reporting should provide information to assist users in which situation(s)?

I. Making social and political decisions

II. Assessing whether current-year citizens received services but shifted part of the payment burden to future-year citizens

A. Both I and II.

B. II only.

C. I only.

D. Neither I nor II.

[6] The focus of accounting and