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

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

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 4

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 5

Which type of cost is generally allowed for a grant under the OMB Uniform Guidance?

Options :

A : interest payments

B : general government expenses

C : materials and supplies

D : lobbying expenses

Answer: C

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