chapter 10 multiple choice

chapter 10 multiple choice - MULTIPLE CHOICE(CHAPTER 10 1 A...

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MULTIPLE CHOICE (CHAPTER 10) 1. A governmental entity receives a gift of cash and investments with a fair value of $200,000. The donor specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. The $200,000 gift should be accounted for in which of the following funds? a) General fund. b) Private-purpose trust fund. c) Agency fund. d) Permanent fund. 2. In previous years, Center City had received a $400,000 gift of cash and investments. The donor had specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. During the current year, the earnings from this gift were $24,000. The earnings from this gift should generally be considered revenue to which of the following funds? Use the following information to answer Questions #3-4 The City received $200,000 to help maintain a local art museum that is owned and operated by a not-for-profit organization. During the year the City transferred net earnings of $20,000 to the appropriate entity/fund. 3. The $200,000 gift would be reported in a (an): 4. The $20,000 transfer would be reported by the fund that made the transfer as a (an) Use the following information to answer Questions #5-6. In the current year, the City of Katerah earned $24,000 on the principal of a private-purpose trust fund but disbursed only $20,000. 5. During the current year the private-purpose trust fund will recognize, related to earnings:
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a) $24,000 revenues. b) $20,000 revenues. c) $24,000 addition to net assets. d) $20,000 addition to net assets.
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6. During the current year the private-purpose trust fund will recognize, related to the cash outflow: 7. Which of the following activities of a governmental entity should be accounted for in a fiduciary fund?
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