Financial 8 PassMaster Questions - Becker CPA Review,...

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Unformatted text preview: Becker CPA Review, PassMaster Questions Lecture: Financial 8 1 2009 DeVry/Becker Educational Development Corp. All rights reserved. CPA PassMaster QuestionsFinancial 8 Export Date: 10/30/08 Becker CPA Review, PassMaster Questions Lecture: Financial 8 2 2009 DeVry/Becker Educational Development Corp. All rights reserved. Governmental Accounting Overview CPA-00893 Type1 M/C A-D Corr Ans: D PM#6 F 8-01 1. CPA-00893 ARE R96 #4 Page 7 The measurement focus of governmental-type funds is on the determination of: Current Financial Resources Financial Position a. Yes No b. No Yes c. No No d. Yes Yes CPA-00893 Explanation Choice "d" is correct. A fund's measurement focus identifies what transactions should be recorded. For governmental funds, the statement of revenues and expenditures should report resources received and consumed during the current period (current financial resources focus). The balance sheet show available resources and current obligations (financial position focus). CPA-00894 Type1 M/C A-D Corr Ans: C PM#7 F 8-01 2. CPA-00894 ARE Nov 95 #57 Page 7 Which of the following fund types of a governmental unit has (have) an economic measurement focus? General Permanent Funds Funds a. Yes Yes b. Yes No c. No No d. No Yes CPA-00894 Explanation Choice "c" is correct. The general fund is a governmental fund. The measurement focus of governmental funds is on the determination of financial position and changes in financial position (sources, uses, and balances of financial resources) rather than on net income determination. The permanent fund is accounted for in the same manner as a governmental fund. CPA-00895 Type1 M/C A-D Corr Ans: C PM#8 F 8-01 3. CPA-00895 ARE Nov 95 #60 Page 6 Fund accounting is used by governmental units with resources that must be: a. Composed of cash or cash equivalents. b. Incorporated into combined or combining financial statements. c. Segregated for the purpose of carrying on specific activities or attaining certain objectives. d. Segregated physically according to various objectives. CPA-00895 Explanation Choice "c" is correct. A fund is a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein. CPA-00896 Type1 M/C A-D Corr Ans: B PM#9 F 8-01 4. CPA-00896 ARE May 95 #51 Page 7 Becker CPA Review, PassMaster Questions Lecture: Financial 8 3 2009 DeVry/Becker Educational Development Corp. All rights reserved. For governmental fund types, which item is considered the primary measurement focus? a. Income determination. b. Current financial resources. c. Capital maintenance....
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This note was uploaded on 09/25/2011 for the course ACCOUNTING AC555ON taught by Professor Abekele during the Spring '10 term at Keller Graduate School of Management.

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Financial 8 PassMaster Questions - Becker CPA Review,...

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