ACC 410 WEEK 11 FINAL EXAM PART

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Of the following powers possessed by Government A, which is an indication that

Government A can impose its will on Government B? Government A:

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Two cities entered into a contractual agreement to operate a landfill. The cities each
contributed the necessary assets to operate the landfill in proportion to their populations. Each
city has the ability to appoint two members of the governing body of the landfill, and each has
an equity interest in the arrangement. The assets contributed by First City were primarily in the
form of property and equipment that had been used in general government activities. In what
manner would the landfill be included in First Citys government-wide financial statements?
A governments financial condition
A citys Revenue from own sources/Median family income ratio is a measure of its
Which of the following is necessary for a government to be considered fiscally independent?
Open Air Conservatory, a not-for-profit entity, held a fund-raising drive to raise money to buy
land to provide a habitat for the endangered Sleepy Eagle. A donor pledged $1 million to the
project provided that Open Air Conservatory was able to raise an additional $1.5 million from
other sources. What entry should Open Air Conservatory make at the time of the $1 million
pledge?
Restricted gifts to not-for-profit organizations
Music Lovers Foundation, a not-for-profit governed by an independent board, was founded to
support the Northern State University Choir until such time as the state legislature adequately
funds the choir. When the choir is adequately funded by appropriation, the Foundation may
direct resources to other music projects that it deems acceptable. When Music Lovers accepts
a contribution from a donor it should debit cash and/or other assets and credit
The basis of accounting used by not-for-profit organizations in their external financial reports
is
Expenses incurred by not-for-profit organizations should be reported as
During the year, Goodman College received the following:

An unrestricted $280,000 pledge to be paid the following year

A $140,000 cash gift restricted for study-abroad scholarships

A notice from a recent business school graduate that he has named the college as a
beneficiary of $60,000 in his will
What amount of contribution revenue should Goodman College report in its statement of
activities?
A public university had tuition and fees for the year ended June 30, 2012, in the amount of
$27,000,000. Scholarships, for which no services were required, amounted to $2,100,000.

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Graduate assistantships, for which services were required, amounted to $1,950,000. The
amount to be reported by the university as net tuition and fee revenue would be
Landon College, a private college, received a $1 million donation. The donor specified that
the principal of her gift could never be used for program activities, but the earnings on the
principal must be used to provide scholarships to academically qualified students in the
business school. The $1 million gift would increase which of the following categories of net
assets?
An accountant has encountered a perplexing financial reporting issue related to the private
college for which he is preparing financial statements. The issue is not specifically addressed
by FASB Statements. To what standards would the accountant first look for guidance?
Lane College Foundation is governed by a board, some members of which are appointed by
the president of Lane College and some of which are elected by the alumni. The foundation was
created to solicit and accept donations on behalf of Lane College, a private not-for-profit
college. Lane College and its foundation are deemed to be financially interrelated. All funds
collected by the foundation must be used to support activities of Lane College. The foundation
board can select which activities of Lane College it supports. Lane Foundation received a $1
million bequest from the estate of a 1940 graduate. At the time the foundation receives the
donation, the foundation should debit Cash for $1 million and credit what account for $1 million?
Which the following is not included in the GAO auditing standards for financial statement
audits?
Reports issued by CPAs conducting audits subject to the GAO standards must include all of
the following except:
Which of the following is NOT a necessary condition for a performance audit?
Which of the following is not a unique characteristic that distinguishes ethical decisions made
by employees of governments from those made by employees of for-profit entities?
The Schedule of Findings and Questioned Costs should include all of the following except
Federal operations are accounted for in four types of funds. Which of the following is one of
the types of funds used?
When the federal government makes a direct loan at an interest rate below the prevailing
Treasury rate (a subsidized loan), an expense should be recorded for which of the following
amounts?
Which of the following federal fund types is most similar to a state or local government's
enterprise fund?
Which of the following categories is included in the Objectives of Federal Financial
Reporting?
The CFO of the United States is