Question 2

School: Kennesaw State University - Course: ACC 499 - Subject: Accounting

Question 1 2 out of 2 points Which of the following statements is true? Selected Answer: a. Governments may engage in activities like activities engaged in by for-profit entities. Correct Answer: a. Governments may engage in activities like activities engaged in by for-profit entities. Question 2 2 out of 2 points The Governmental Accounting Standards Board is the primary standard-setting body for: Selected Answer: b. All state and local governments. Correct Answer: b. All state and local governments. Question 3 0 out of 2 points Which fund type would all governments normally include in their fund financial statements? Selected Answer: c. General fund Correct Answer: b. Special revenue funds Question 4 0 out of 2 points During the current fiscal year, Mountain View City's water utility, an enterprise fund, rendered billings for water supplied to the general fund. Which of the following accounts should be debited by the general fund? Selected Answer: d. Expenditures Correct Answer: b. Due to water utility enterprise fund Question 5 2 out of 2 points

Which of the following activities is NOT an activity in which a government might engage? Selected Answer: d. All of the above are activities that might be carried out by a government. Correct Answer: d. All of the above are activities that might be carried out by a government. Question 6 2 out of 2 points A fund is Selected Answer: b. II only Correct Answer: b. II only Question 7 2 out of 2 points Which of the following characteristics is unique to governments? Selected Answer: c. The ability to issue tax- exempt debt. Correct Answer: c. The ability to issue tax- exempt debt. Question 8 2 out of 2 points A city receives a donation from a citizen who specifies that the principal must be invested, and the earnings must be used to support operations of a city-owned recreational facility. The principal of this gift should be accounted for in which of the following funds? Selected Answer: c. Permanent fund. Correct Answer: c. Permanent fund.