ACC 410 FINAL EXAM PART 2

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The City created a legally separate entity to operate a County Hospital. The City Council
appoints a voting majority of the board of the Hospital. The City cannot impose its will on the
Hospital and there is no potential for a financial benefit or financial burden to the City. The
County Hospital would be a

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The Marsh River School District, a legally separate school district that has a separately
elected governing body, cannot enter into any debt agreements without the approval of the
County Commission. Marsh River School District would be considered a:
The State has a legally separate State Building Authority which has a board appointed by the
Governor. The Authority issues debt in its own name, holds title to buildings in its own name,
and leases its building exclusively to the State. In what manner would the Authority be included
in the States Basic Financial Statements?
The City created a legally separate Housing Authority to provide low-income housing to
residents of the City. The City issues debt for the Housing Authority in the name of the City, but
the Housing Authority is responsible for repayment of the debt. The Housing Authority is
governed by a board composed of all 5 members of the City Council. Actions can be taken by
the Authority upon receiving an affirmative vote by a simple majority of the board. The Housing
Authority would be considered a:
Government-wide financial statements include which of the following?
Voluntary health and welfare organizations must also report expenses by
In a prior year, United Charities received a $100,000 gift to be used to acquire vans to
provide transportation for physically challenged adults. During the current year, United acquired
two vans at a cost of $60,000 each. The appropriate entry(ies) to record the acquisition should
be
The basis of accounting used by not-for-profit organizations in their external financial reports
is
United Charities annual fund raising drive in 2001 raised pledges of $600,000 of which
$400,000 were collected in 2001 and $100,000 were collected in 2002. United Charities
estimates $75,000 of the remaining pledges will never be collected. In 2002, the change in
unrestricted net assets is
A not-for-profit Art Museum that has elected not to capitalize its art collection receives a
donation of a rare piece of Tlinket Indian art. The donor paid $8,000 for the piece several years
ago. Today the piece has an estimated fair value of $50,000. What entry should the Art
Museum make upon receipt of this donation?
A private not-for-profit college would include which of the following financial statements in is
Basic Financial Statements?
Which of the following entities should recognize depreciation expense on its operating
statement?

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For financial reporting purposes, private not-for-profit colleges and universities are within the
jurisdiction of the
A hospital estimates, based on past experience, that it will incur $5 million in malpractice
claims as a result of services rendered in the current period. The hospital carries a malpractice
insurance policy with a yearly $2 million deductible clause. The amount that should appear on
its year-end financial statement as Claims Expense (Loss) should be
In prior years, a not-for-profit hospital received funds from a donor who restricted the use of
those funds to providing nursing scholarships. During the current year $8,000 of scholarships
were awarded. These scholarships should be reported
Which of the following is not reported upon in the Schedule of Findings and Questioned
Costs?
The process of specifically directing federal funds to a particular program is called:
Generally accepted government auditing standards (GAGAS) refers to standards
incorporated in
In discerning the objectives of a program to be audited, the auditors should give the least
credibility to
This law requires that the wages of laborers and mechanics employed by the contractors of
federally funded projects be paid at prevailing local wage rates.
Which of the following groups is least likely to be involved in evaluating the efficiency and
effectiveness of government programs?
Which of the following is an example of an efficiency measure?
The city council of the City of Highland Hills has adopted a policy of aggressively pursuing
grants and other resource inflows from other levels of government. Over the past several years,
the proportion of total City revenues that comes from other levels of government has been
steadily increasing. As a consequent of these increased revenues, the City has begun offering
a number of new services to the citizens of the City. In assessing the financial condition of the
City of Highland Hills, an analyst would conclude which of the following?
Which of the following events would be evidence that the audience criterion of a not-for-profit
joint program and fund-raising activity has NOT been met? Each activity included both a
program activity and a fund-raising solicitation.
Which of the following statements is true regarding the ratio analysis of Intergovernmental
Revenues to Total Revenues?