Question 1

Which of the following events is an example of an expenditure but not an expense?

Options :

A : At the end of the fiscal year, the government signs a contract to buy office furniture.

B : At the end of the fiscal year, the government pays its employees for work performed.

C :

At the end of the fiscal year, the government pays for ten vehicles which will be depreciated over five years.

D :

At the end of the fiscal year, the government receives and pays its electric bill for the previous month.

Answer: C

Question 2

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

Question 3

Which of the following situations may cause contingent liabilities?

Options :

A : loss on the sale of an asset

B : building with asbestos

C : impairment of an asset

D : unrealized loss

Answer: B

Question 4

Separate fund financial statements should be presented for

Options :

A : net assets and activities.

B : governmental and proprietary funds.

C : long-term debt.

D : capital assets.

Answer: B

Question 5

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

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