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Study Resources (Accounting)

Multiple Choice Questions 19.Which of the following best describes the recommended format for the government-wide statement of activities?  A. Program revenues minus expenses minus other revenues and expenses equals change in net position. B. Program revenues plus general revenues minus expenses equals change in net position. C. Program revenues minus expenses.
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49.The expenditure classification "Current Expenditures" is an example of which of the following types of classifications? A. Activity. B. Character. C. Function. D. Object. 50.Comparisons of budgeted versus actual revenues and expenditures are A. Required by GAAP for the General Fund and major special revenue funds for which an annual budget has been legally.
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True / False Questions 1.Fund-based financial statements are intended to provide detailed financial information about the governmental, business-type, and fiduciary activities of the primary government.  2.Program revenues are distinguished from general revenues on the government-wide statement of activities under GASB standards.  3.Aggregate financial information for all special revenue funds is reported.
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64.The chapter identified four links between AIS and auditing. Which link is indicated by each independent description below?1) Alex prepared a bond discount amortization schedule using Excel.2) Amy verified an audit client's process for validating XBRL taxonomy extensions.3) Joan reviewed the previous year's risk/control matrix when starting an audit.4) Josef.
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Matching Questions 61.Match each description on the left with the appropriate type of audit on the right. 1.Determines whether the various forms of IT in an AIS are producing expected results              Operational audit              2.A basket of the other types of auditsInvestigative audit              3.Examination of a company's rules and procedures for conducting businessSystems.
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59.For what funds do budgetary comparisons need to be presented in connection with the basic financial statements? A. General Fund. B. General Fund and all major funds. C. All governmental funds with legally adopted annual budgets. D. General Fund and major special revenue funds for which a budget is legally adopted. 60.When computers are.
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66.Consider the audit descriptions and types paired below. Indicate with an X in the appropriate column whether the audit described is paired with the appropriate type. 67.Analyze each statement below about the relationships between AIS and auditing. Indicate whether each statement is: (a) always true, (b) sometimes true or (c) never.
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29.The Estimated Revenues control account of a government is credited when  A. The budgetary accounts are closed: Yes; Revenues are recorded: No B. The budgetary accounts are closed: No; Revenues are recorded: No C. The budgetary accounts are closed: No; Revenues are recorded: Yes D. The budgetary accounts are closed:.
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Ranking Questions 61.The steps in the Langenderfer and Rockness model for making ethical decisions are listed below. Number them in the order of their occurrence based on the information in the text. Evaluate the consequences of each possible course of action. Identify the facts. Identify the alternative courses of action. Identify the ethics issues and.
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21.Fines and forfeits are reported as charges for services on the government-wide statement of activities.  22.A payment made by a city-owned utility to the General Fund of the city in lieu of taxes is an example of an "internal exchange transaction."  23.Amounts due to or from other funds should be.
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True / False Questions 1.Governmental funds are further classified as governmental or business-type.  2.Governmental funds are identical to governmental activities, proprietary funds are identical to business-type activities, and fiduciary funds are identical to fiduciary activities of a government.  3.An objective of the accounting system for a state or a local government.
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True / False Questions 1.General purpose governments generally provide a wider range of services to their residents than do special purpose governments.  2.Examples of special purpose governments include cities, towns, and public schools that receive tax revenue to finance the services they provide.  3.The Governmental Accounting Standards Board (GASB) is the.
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39.The expenditure classification "City Attorney" is an example of which of the following types of classification? A. Function. B. Organization unit. C. Character. D. Program. 40.When the budget of a government is adopted and Estimated Revenues exceed Appropriations, the excess is  A. Credited to Budgetary Fund Balance. B. Debited to Budgetary Fund Balance. C..
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True / False Questions 1.General capital assets should be distinguished from capital assets that are specifically associated with activities financed by proprietary and fiduciary funds, since capital assets acquired by proprietary and fiduciary funds are accounted for by those funds.  2.GASB standards require that all governmental expenditures for long-lived assets be.
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69.Bell suggested seven characteristics necessary to be considered a professional. Revise each statement below to more appropriately reflect one of those characteristics; indicate the relevant characteristic in the space provided. 70.McDonald suggested four characteristics necessary to be considered a professional. Revise each statement below to more appropriately reflect one of those.
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41.Which of the following companies was created in 1985 from the merger of two other companies in the natural gas and pipeline industries? A.Enron B.Arthur Andersen C.BMIS D.Adelphia Communications Corporation 42.Debra and Dexter are CPAs specializing in tax planning and preparation. Recently, Dexter commented that there is nothing ethically wrong with tax evasion, so long.
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21.Which of the following upholds at least one generally accepted auditing field work standard? A.Using the COSO framework to evaluate internal controls. B.Allowing members of an audit team to choose their supervisor independently. C.Both using the COSO framework to evaluate internal controls and allowing members of an audit team to choose their supervisor.
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31.The first step in the Langenderfer and Rockness model is: A.Decide the best course of action. B.Identify ethics issues and stakeholders. C.Identify the facts. D.Determine which school of ethical thought to follow. 32.Which of the following steps in the Langenderfer and Rockness model comes first? A.Identify the alternative courses of action. B.Reach a decision as to the.
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11.All encumbrances must be closed at year-end.  12.An encumbrance represents the estimated future liability for goods or services resulting from placing a purchase order or signing a contract.  13.GASB standards require that all state and local governments present a statement of revenues, expenditures, and changes in fund balances—budget and actual.
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65.Bell identified seven criteria to be a professional. Which criterion applies to each independent situation below?1) Albert wrote an e-mail to a prospective new client.2) David used time value of money principles to calculate the price of a bond.3) Hal participated in an online conference about tax law changes.4) Jordan.
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11.A clear understanding of the steps in the accounting cycle is likely to be useful in: A.Financial audits. B.Investigative audits. C.Both financial audits and investigative audits. D.Neither financial audits nor investigative audits. 12.The text described seven types of audits common in accounting practice. Which of the following statements about them is most true? A.An adverse report.
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51.The Audit Clarity Project's objectives include: A.making auditing standards easier to read. B.converging US auditing standards with international auditing standards. C.Both making auditing standards easier to read and converging US auditing standards with international auditing standards. D.Neither making auditing standards easier to read nor converging US auditing standards with international auditing standards. 52.All of the.
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Essay Questions 76.The Board of Aldermen of Fitchburg approved the appropriations budget for its General Fund for the year ending December 31, as shown below. 1) Explain the legal significance of an appropriation and why auditors engaged for a financial and compliance audit need to know the meaning of the term. 2) It.
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Short Answer Questions 44.The following are categories of funds described in Chapter 2: A. Governmental funds B. Proprietary funds C. Fiduciary funds For each of the following descriptive phrases, indicate the type of fund from the list above that best matches by placing the appropriate letter in the blank space next to the phrase. Essay Questions 45.Explain.
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Multiple Choice Questions 13.The Governmental Accounting Standards Board is assigned responsibility for setting accounting and financial reporting standards for  A. Governments; such as federal agencies, states, cities, counties, villages, and townships. B. State and local government entities and governmentally-related units and agencies, such as utilities, authorities, hospitals, and colleges and universities..
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37.Which of the following funds are proprietary funds? A. Enterprise funds, investment trust funds, pension trust funds, and the General Fund. B. Enterprise funds and internal service funds. C. Internal service funds, special revenue funds, and enterprise funds. D. Proprietary funds are not used in governmental accounting. 38.Which of the following funds are governmental.
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Short Answer Questions 71.List five kinds of audits you are likely to encounter in your professional career. 72.In your own words, explain the ten generally accepted auditing standards discussed in the text. 73.The chapter described five generic steps in a financial statement audit; it also discussed six other types of audits you may.
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68.The chapter discussed four infamous ethics cases in accounting: (a) Charles Ponzi, (b) Adelphia Communications Corporation, (c) Enron/Arthur Andersen and (d) Bernie Madoff. Indicate which case is most closely associated with each of the following items.1. Created from a merger of two other companies in the natural gas and pipeline.
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11.Because budgetary accounts are used by governments, their financial statements can never be said to be in accord with generally accepted accounting principles.  12.Governments must present three sets of fund financial statements.  13.When revenues are legally restricted by external resource providers or committed by enabling legislation for particular operating purposes,.
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Essay Questions 63.Supply the missing words/phrases below based on the definition of ethics in the text.Ethics is a set of (a) that differentiates (b), is established by (c), and is imposed on members of the group to (d). Ethics is a discipline that studies (e) for living and considers the (f).
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41.Which of the following link accounting information systems with auditing? A.Business processes B.Information technology skills C.Both business processes and information technology skills D.Neither business processes nor information technology skills 42.Information technology skills can link auditing to accounting information systems. Which of the following tasks can be completed using only information technology? A.All five generic steps of.
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11.Generally, encumbrance accounting is not used in the accounting for payroll.  12.Governments, unlike business organizations, generally do not incur expenditures/expenses for the employer's share of FICA taxes and for contributions to other retirement plans established by law.  13.Under the modified accrual basis of accounting applicable to governmental fund types, revenue.
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70.Revise each statement below so that it more clearly upholds the indicated generally accepted auditing standard.1) Training: Alexis completed an online course on professional etiquette.2) Evidence: Allison checked the employment references of an audit client's CEO as part of evaluating the CEO's credentials.3) Report: Ann used her own words to.
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Multiple Choice Questions1.In ___, auditors examine a company's rules and procedures for conducting business. A.A financial audit B.An operational audit C.A compliance audit D.A systems audit 2.A ___ determines whether the various forms of information technology in an accounting information system are producing expected results. A.Financial audit B.Compliance audit C.Systems audit D.Forensic audit 3.Which type of audit is a "basket".
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23.A comprehensive annual financial report (CAFR) prepared in conformity with GASB recommendations should include which of the following sections?  A. Letter of transmittal, management's discussion and analysis (MD&A), and financial. B. Introductory, financial, and statistical. C. Introductory, MD&A, and financial. D. Letter of transmittal, financial, and supplementary. 24.Which of the.
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Multiple Choice Questions 28.Which of the following financial statement(s) reports both current and noncurrent assets and liabilities? Government-wide Statement of Net PositionGeneral Fund Balance Sheet A)NoYes B)NoNo C)YesNo D)YesYes A. Choice A B. Choice B C. Choice C D. Choice D 29.Under the dual-track accounting approach used in the text, which of the following transactions or events.
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51.Lenise laid out three potential responses for a violation of her company's ethics code. Based on the Langenderfer and Rockness model, what should she do next? A.Determine who will be affected by each potential response. B.Speculate about what will happen for each of the three responses. C.Talk with a trusted co-worker. D.Determine if her.
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58.If state law requires that local governments prepare General Fund and special revenue fund budgets on a basis that differs from the basis of accounting required by GAAP, then the budgetary comparison schedule or statements should  A. Not be included as part of the basic financial statements. B. Be included.
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68.Consider the statements presented below. Choose those that would happen as part of a financial statement audit, then put them in the proper order based on the steps presented in the text.a. Check access to sensitive information and other assets.b. Consult GAO standards.c. Convert financial statements to XBRL.d. Evaluate the.
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50.Explain the nature of the three major activity categories of a state or local government: governmental activities, business-type activities, and fiduciary activities. Provide examples of each. 51.Describe the comprehensive annual financial report (CAFR) described in the Annual Financial Reports principle. What are the sections of the report and which components.
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True / False Questions 1.The government-wide statement of net position uses the same measurement focus and basis of accounting used by the General Fund balance sheet.  2.The Governmental Activities column of the government-wide statement of net position differs from the General Fund balance sheet in that it reports both current and.
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Essay Questions 63.Which generally accepted auditing standard is indicated by each independent item below? Use each standard exactly one time.1) Charlie, the manager of an audit team, reviewed the work of inexperienced auditors closely.2) Jill refused to accept an audit engagement because her friend was CEO of the company.3) Leigh completed.
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Multiple Choice Questions 17.The accounting system used by a state or local government must make it possible  A. To present fairly the financial position and results of financial operations of the government as a whole, as well as fund financial activity in conformity with GAAP. B. To prepare financial statements as.
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31.In which generic step of a financial statement audit is the auditor most likely to verify the frequency of bank reconciliations? A.First B.Second C.Third D.Fifth 32.The third generic step in a financial statement audit has the strongest relationship to one of the ___ standards in GAAS. A.General B.Field work C.Reporting D.Environmental 33.The last generic step in a financial statement audit.
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Matching Questions 62.Bell's characteristics of a professional are listed below on the right. Match each example on the left with the most appropriate characteristic on the right. Use each characteristic exactly once. 1.Samantha compared the costs and benefits of a set of internal controls.Integrates knowledge from many disciplines              2.Jordan considered the impact.
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Short Answer Questions 71.List the four characteristics suggested by McDonald to be considered a professional. 72.In your own words, explain the fundamental principles of each of the following schools of ethical thought: ethical egoism, utilitarianism, deontology, virtue ethics. 73.Miguel had just been promoted to Director of Accounts Receivable in the accounting department of.
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27.Which of the following is a proprietary fund?  A. Special revenue fund. B. Investment trust fund. C. Debt service fund. D. Internal service fund. 28.Which of the following is a fiduciary fund? A. Investment trust fund. B. Special revenue fund. C. Debt service fund. D. Enterprise fund. 29.Which of the following funds would be.
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