Question 1

For state and local governments, a fund that is legally restricted to the use of earnings with the principal protected is

Options :

A : an enterprise fund.

B : a permanent fund.

C : an internal service fund.

D : a general fund.

Answer: B

Question 2

A state department has been developing a new computer system for managing federal grants. The project has the following costs: What amount should be recorded as the value of the intangible asset?

Options :

A : $575.000

B : $705.000

C : $755,000

D : $915.000

Answer: C

Question 3

In state and local financial audits, material weaknesses must be reported to the

Options :

A : legislature.

B : governing body.

C : taxpayers.

D : local media.

Answer: B

Question 4

An agency is developing a lee for services to cover all direct operating expenditures. Which of the following should be included in the fee calculation?

Options :

A : supplies, equipment depreciation, staffing

B : staffing, location rent, equipment depreciation

C : supplies, equipment depreciation, location rent

D : staffing, location rent, supplies

Answer: B

Question 5

The objectives of federal financial reporting include all of the following EXCEPT

Options :

A : systems and control.

B : budgetary integrity.

C : mission readiness.

D : stewardship.

Answer: C

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