Chapter 38 & 39 Flashcards
Which of the following statements is true regarding school districts and the financial reporting entity?
A. A school district may be part of the legal entity of some other government.
B. A school district may be a component unit.
C. A school district may have component units.
D. All of the above
E. Both B and C
D
Which of the following statements is true regarding charter schools?
A. A charter school always is a component unit.
B. A charter school normally is a component unit.
C. A charter school normally is not a component unit.
D. A charter school never is a component unit
C
Which of the following is a criterion for determining if a legally separate, tax-exempt organization should be included as a component unit of a school district?
A. The resources raised and distributed by all such organizations, in the aggregate, are significant to the school district.
B. The resources raised and distributed by an individual organization are significant to the school district.
C. The resources of an individual organization partially benefit the school district.
D. The school district cannot access the resources of an organization
B
What accounting and financial reporting options does a school have if it decides to convert a school building to warehouse space even though no physical damage has occurred?
A. Impairment loss
B. Extraordinary loss
C. Either A or B
D. Neither A or B
A
When are donations of commodities to school lunch programs normally recognized as revenue?
A. When received
B. When consumed
C. Either A or B
A
How should revenue from a single-program grant that is accounted for in more than one function be reported in the statement of activities?
A. As program revenue, allocated among functions
B. As program revenue, in only one function
C. As a general revenue
D. None of the above
A
A school district charges tuition to certain students who are legally residents of another district. The amount of the tuition is calculated to include a proportionate recovery of administrative cost. How should the tuition revenue be classified in the government-wide statement of activity?
A. Instructional services
B. Administration
C. Both A and B
A
How should a school district classify shared tax revenues raised by the county to support the school district?
A. Taxes – general revenue
B. Nonexchange revenue – program revenue
C. Nonexchange revenue – general revenue
D. All of the above
E. Either B or C
E
How should salary expense be recognized if teachers are paid throughout the year for services rendered during a shorter academic term?
A. Throughout the year
B. Throughout the academic term
C. Either A or B
B
Which of the following is true concerning contributed services?
A. GASB requires that the value of contributed services be reported as revenue.
B. The value of contributed services may be reported as revenue.
C. GASB prohibits value of contributed services be reported as revenue.
B
How should funds collected by a student club through member contributions and fundraising, and held by a school district for safekeeping until they are spent in a manner approved by the club’s (student) president and faculty advisor, be reported by the district? Assume (i) the club is not a legally separate entity, (ii) that the funds can be used for any legal purpose approved by the president and advisor and (iii) the faculty advisor is an employee of the school district.
A. As a fiduciary fund
B. As a special revenue fund
C. In the general fund
D. Either B or C
C
How should funds that are privately donated to provide scholarships to needy students to enable them to participate in programs for which there are required fees (arts materials fees, musical instrument rentals), and held by the school district, be reported by the district? Assume that the donations are restricted by the donors to be used for the scholarships and that funds are awarded by the district based on the superintendent’s selection among student applications.
A. As a fiduciary fund
B. As a special revenue fund
C. In the general fund
D. Either B or C
D
Which of the following statements is true concerning financial reporting for escheat property?
A. If a fiduciary fund is used, all escheat property should be reported in that fund.
B. If a fiduciary fund is used, a liability should be reported for amounts expected to be remitted to property owners.
C. If all escheat property is reported in the general fund, a liability should be reported for amounts expected to be remitted to property owners.
D. All of the above
C
Which of the following statements is true regarding pass-through grants?
A. Pass-through grants should always be reported in a custodial fund.
B. Pass-through grants should normally be reported in a custodial fund.
C. Pass-through grants should sometimes be reported in a custodial fund.
D. Pass-through grants should never be reported in a custodial fund.
C
What fund type should be used to account for an unemployment compensation benefit plan and related administrative costs?
A. Enterprise fund
B. General fund
C. Either A or B
D. Both A and B
D
