Question

All of the following funds have a financial resources measurement focus with the exception of which fund? a. debt service fund b. enterprise fund c. special revenue fund d. capital projects fund All of the following are elements of the statement of financial condition for 12. state and local governments with the exception of a. Assets and Liabilities b. Deferred inflow and outflow of resources c. Net position d. Inflow and outflow of resources Which of the following items should not be included as revenue for a state government? Property taxes levied in the current fiscal year. Interest on money kept in banks. a. b. Amounts received from other financing sources. Fines and licensing fees for which amounts cannot be budgeted. c. d. 14. The following information was obtained from the general fund balance sheet of Lima Village on June 30, 20X9, the close of its fiscal year: 220,000 10,000 40,000 Vouchers Payable Inventory of Supplies Fund Balance-Assigned for Encumbrances Fund Balance-Nonspendable Total Assets 10,000 304,000 On June 30, 20X9, what was Lima's unassigned fund balance in its general fund? a. $44,000 b. $84,000 c. $24,000 d. $34,000

Answer 1

11. All the following funds have a financial resources measurement focus with the exception of enterprise fund.

The governmental funds report information on a modified accrual basis of accounting and current financial resources measurement focus.

Governmental funds include

• Special revenue funds, for reporting specific revenue sources that are limited to being used for a particular purpose
• Debt service funds, which account for the repayment of debt
• Capital project funds, which track the accumulation and use of resources for constructing, acquiring, and rehabilitating capital assets, such as buildings and roads
• Permanent funds, where a government reports principal amounts that are restricted to being invested to produce income but cannot be spent.
• The general fund, where a government accounts for everything not reported in another fund

Enterprise fund is not included in Governmental funds thus does not have financial resource measurement focus.

12. All of the following elements are included in Statement of financial conditions for state and local governments with exception of Inflow and Outflow of resources.

The elements of financial position include:

• Assets as resources
  
• Liabilities as present obligations
  
• A deferred outflow of resources is a consumption of net assets by the government that is applicable to a future reporting period.
  
• A deferred inflow of resources is an acquisition of net assets by the government that is applicable to a future reporting period.  
  
• Net position

Inflow and outflow of resources are elements of resource flow statements.