Question 1

All of the following about tax abatement agreements must be disclosed by state and local governments except:

Accepted Answer

A)  The purpose of the tax abatement program. 
B)  The type of tax being abated. 
C)  Identify the companies receiving the abatements. 
D)  Dollar amount of taxes abated. 
E)  Commitments made by the government or other party. 
A)  The purpose of the tax abatement program. 
B)  The type of tax being abated. 
C)  Identify the companies receiving the abatements. 
D)  Dollar amount of taxes abated. 
E)  Commitments made by the government or other party. C

Question 2

How is the Statement of Cash Flows for Proprietary Funds similar and dissimilar to a Statement of Cash Flows for a for-profit business?

Accepted Answer

The statement of cash flows for a proprietary fund is very similar to the statement of cash flows for a for-profit business. Two sections are similar including the cash flows from operating activities and cash flows from investing activities. The cash flows from financing activities are reported differently than for profit businesses and are split into two sections when reporting for a Proprietary Fund. These two sections specify the cash flows from noncapital financing and cash flows from capital and related financing activities. The statement of cash flows for a proprietary fund is different from the cash flow statement for a for-profit business in that GASB requires the direct method of presenting cash flows from operating activities, with a reconciliation to net operating income. At this time, GAAP for the cash flow statement for a for-profit business gives the option of presenting cash flows from operating activities using either the direct or the indirect method.

Question 3

A city starts a solid waste landfill during 2020. When the landfill was opened the city estimated that it would fill to capacity within 6 years and that the cost to cover the facility would be $1.8 million which will not be paid until the facility is closed. At the end of 2020, the facility was 15% full, and at the end of 2021 the facility was 35% full.On government-wide financial statements, which of the following are the appropriate amounts to present in the financial statements for 2021?

Accepted Answer

A)  Both expense and liability will be zero. 
B)  Expense will be $270,000 and liability will be $540,000. 
C)  Expense will be $540,000 and liability will be $540,000. 
D)  Expense will be $630,000 and liability will be $540,000. 
E)  Expense will be $360,000 and liability will be $630,000. 
A)  Both expense and liability will be zero. 
B)  Expense will be $270,000 and liability will be $540,000. 
C)  Expense will be $540,000 and liability will be $540,000. 
D)  Expense will be $630,000 and liability will be $540,000. 
E)  Expense will be $360,000 and liability will be $630,000. E

Question 4

The Town of Portsmouth has at the beginning of the year a $213,000 Net Position balance, and a $52,000 Fund Balance.The following information relates to the activities within the Town of Portsmouth for the year of 2021.   Prepare a Statement of Net Position at December 31, 2021.

Accepted Answer

The answer of The Town of Portsmouth has at the...

Question 5

What is meant by the term fiscally independent?

Accepted Answer

Fiscally independent means that the lead

Question 6

The Town of Harvest opened a solid waste landfill in 1998 that is filled to capacity in the current year. The city initially anticipated closure costs of $3 million. These costs were not expected to be incurred until the landfill was closed. What is the final journal entry to record these costs assuming the estimated $3 million closure costs were properly recorded and the landfill is accounted for in an enterprise fund?

Accepted Answer

A)  Option A. 
B)  Option B. 
C)  Option C. 
D)  Option D. 
E)  Option E. 
A)  Option A. 
B)  Option B. 
C)  Option C. 
D)  Option D. 
E)  Option E.

Question 7

The Town of Portsmouth has at the beginning of the year a $213,000 Net Position balance, and a $52,000 Fund Balance.The following information relates to the activities within the Town of Portsmouth for the year of 2021.   Prepare a Statement of Activities for the year ended December 31, 2021.

Accepted Answer

The answer of The Town of Portsmouth has at the...

Question 8

The City of Ibiza maintains a collection of paintings of a former citizen in its City Hall building. During the year, one painting was purchased by the city for $3,000 at an auction using appropriated funds in the General Fund. Also during the year, a donation of a painting valued at $3,600 was made to the city.Prepare the journal entry/entries for the two transactions for the purposes of preparing the governmental fund financial statements.

Accepted Answer

General Fund: @#IMG-DLM& No entry in Gen

Question 9

Which criteria must be met to be considered a special purpose government?(1.) Have a separately elected governing body.(2.) Be legally independent.(3.) Be fiscally independent.

Accepted Answer

A)  1 only. 
B)  1 and 2. 
C)  2 and 3. 
D)  1 and 3. 
E)  1, 2, and 3. 
A)  1 only. 
B)  1 and 2. 
C)  2 and 3. 
D)  1 and 3. 
E)  1, 2, and 3.

Question 10

Over the years, four alternatives have been suggested for constructing the financial statements for public colleges and universities. These alternatives include all of the following except:

Accepted Answer

A)  Adopt FASB's requirements so that all colleges and universities (public and private) prepare comparable financial statements. 
B)  Apply a more traditional model focusing on fund financial statements and the wide variety of funds that such schools often have to maintain. 
C)  Create an entirely new set of financial statements designed specifically to meet the unique needs of public colleges and universities. 
D)  Adopt the requirements issued by the Private Company Council (PC
C)  of the FASB. 
E)  Adopt the same reporting model for public schools that has been created for state and local governments. 
A)  Adopt FASB's requirements so that all colleges and universities (public and private) prepare comparable financial statements. 
B)  Apply a more traditional model focusing on fund financial statements and the wide variety of funds that such schools often have to maintain. 
C)  Create an entirely new set of financial statements designed specifically to meet the unique needs of public colleges and universities. 
D)  Adopt the requirements issued by the Private Company Council (PC
C)  of the FASB. 
E)  Adopt the same reporting model for public schools that has been created for state and local governments.

Question 11

Which of the following statements regarding Management's Discussion and Analysis is true?

Accepted Answer

A)  MD&A is required only for Proprietary Fund Financial Statements. 
B)  MD&A is reported in the statistical section of the annual report. 
C)  MD&A is required for comprehensive annual financial reports. 
D)  MD&A for state and local government financial statements must include an analysis of potential, untapped revenue sources. 
E)  MD&A is an optional inclusion for state and local government financial statements. 
A)  MD&A is required only for Proprietary Fund Financial Statements. 
B)  MD&A is reported in the statistical section of the annual report. 
C)  MD&A is required for comprehensive annual financial reports. 
D)  MD&A for state and local government financial statements must include an analysis of potential, untapped revenue sources. 
E)  MD&A is an optional inclusion for state and local government financial statements.

Question 12

According to the GASB (Governmental Accounting Standards Board), which one of the following is not a criterion for determining whether a government is legally separate?

Accepted Answer

A)  The government can determine its own budget. 
B)  The government can issue bonded debt. 
C)  The government has corporate powers including the right to sue and be sued. 
D)  The government has the power to levy taxes. 
E)  The government can issue preferred stock. 
A)  The government can determine its own budget. 
B)  The government can issue bonded debt. 
C)  The government has corporate powers including the right to sue and be sued. 
D)  The government has the power to levy taxes. 
E)  The government can issue preferred stock.

Question 13

Which statement is false regarding the government-wide Statement of Net Position?

Accepted Answer

A)  Noncurrent liabilities are presented separately from current liabilities. 
B)  Assets are reported excluding capital assets. 
C)  Capital assets are reported net of depreciation. 
D)  Investments are reported at fair value rather than historical cost. 
E)  Discretely presented component units are grouped and shown on the right of the total. 
A)  Noncurrent liabilities are presented separately from current liabilities. 
B)  Assets are reported excluding capital assets. 
C)  Capital assets are reported net of depreciation. 
D)  Investments are reported at fair value rather than historical cost. 
E)  Discretely presented component units are grouped and shown on the right of the total.

Question 14

Which of the following is a financial statement of a proprietary fund?

Accepted Answer

A)  Balance sheet. 
B)  Statement of Operations. 
C)  Statement of Changes in Cash Flows. 
D)  Statement of Net Position. 
E)  Statement of Revenues, Expenditures, and Changes in Fund Balance. 
A)  Balance sheet. 
B)  Statement of Operations. 
C)  Statement of Changes in Cash Flows. 
D)  Statement of Net Position. 
E)  Statement of Revenues, Expenditures, and Changes in Fund Balance.

Question 15

What three criteria must be met before a governmental unit can elect to not capitalize and therefore not report a work of art or historical treasure as an asset?

Accepted Answer

Before a governmental unit can elect to

Question 16

Which statement is false regarding the Balance Sheet for Governmental Fund Financial Statements?

Accepted Answer

A)  The Balance Sheet for Governmental Fund Financial Statements measures only current financial resources of the governmental entity. 
B)  The Balance Sheet for Governmental Fund Financial Statements uses the modified accrual method for timing purposes. 
C)  Capital Assets are not reported on the Balance Sheet for Governmental Fund Financial Statements. 
D)  The Balance Sheet for Governmental Fund Financial Statements measures only long-term financial resources of the governmental entity. 
E)  Long-term debts are not reported on the Balance Sheet for Governmental Fund Financial Statements. 
A)  The Balance Sheet for Governmental Fund Financial Statements measures only current financial resources of the governmental entity. 
B)  The Balance Sheet for Governmental Fund Financial Statements uses the modified accrual method for timing purposes. 
C)  Capital Assets are not reported on the Balance Sheet for Governmental Fund Financial Statements. 
D)  The Balance Sheet for Governmental Fund Financial Statements measures only long-term financial resources of the governmental entity. 
E)  Long-term debts are not reported on the Balance Sheet for Governmental Fund Financial Statements.

Question 17

What information is required in the financial section of a state or local government's CAFR?

Accepted Answer

The financial section of a CAFR must inc

Question 18

A method of accounting for infrastructure assets that allows the expensing of all maintenance costs each year instead of computing depreciation is called:

Accepted Answer

A)  Government-wide depreciation. 
B)  Proprietary depreciation. 
C)  GASB depreciation. 
D)  Modified approach. 
E)  Alternative depreciation. 
A)  Government-wide depreciation. 
B)  Proprietary depreciation. 
C)  GASB depreciation. 
D)  Modified approach. 
E)  Alternative depreciation.

Question 19

What is meant by the term legally independent?

Accepted Answer

Legal independence is demonstr

Question 20

The modified approach to accounting for infrastructure assets may be utilized by a state or local government if:The government accumulates information about all infrastructure assets within either a network or subsystem of a network.The government capitalizes infrastructure assets.The government expenses costs of maintaining the infrastructure assets.The government chooses to depreciate its infrastructure assets.

Accepted Answer

A)  i and ii. 
B)  i, ii, and iv. 
C)  ii and iii. 
D)  i, ii, and iii. 
E)  i, ii, iii, and iv. 
A)  i and ii. 
B)  i, ii, and iv. 
C)  ii and iii. 
D)  i, ii, and iii. 
E)  i, ii, iii, and iv.

All of the following about tax abatement agreements must be disclosed by state and local governments except:

How is the Statement of Cash Flows for Proprietary Funds similar and dissimilar to a Statement of Cash Flows for a for-profit business?

The Town of Portsmouth has at the beginning of the year a $213,000 Net Position balance, and a $52,000 Fund Balance.The following information relates to the activities within the Town of Portsmouth for the year of 2021. Prepare a Statement of Net Position at December 31, 2021.

What is meant by the term fiscally independent?

The Town of Portsmouth has at the beginning of the year a $213,000 Net Position balance, and a $52,000 Fund Balance.The following information relates to the activities within the Town of Portsmouth for the year of 2021. Prepare a Statement of Activities for the year ended December 31, 2021.

Which criteria must be met to be considered a special purpose government?(1.) Have a separately elected governing body.(2.) Be legally independent.(3.) Be fiscally independent.

Over the years, four alternatives have been suggested for constructing the financial statements for public colleges and universities. These alternatives include all of the following except:

Which of the following statements regarding Management's Discussion and Analysis is true?

According to the GASB (Governmental Accounting Standards Board), which one of the following is not a criterion for determining whether a government is legally separate?

Which statement is false regarding the government-wide Statement of Net Position?

Which of the following is a financial statement of a proprietary fund?

What three criteria must be met before a governmental unit can elect to not capitalize and therefore not report a work of art or historical treasure as an asset?

Which statement is false regarding the Balance Sheet for Governmental Fund Financial Statements?

What information is required in the financial section of a state or local government's CAFR?

A method of accounting for infrastructure assets that allows the expensing of all maintenance costs each year instead of computing depreciation is called:

What is meant by the term legally independent?

Accounting for Estates and Trusts

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for State and Local Governments, Part I

Partnerships: Termination and Liquidation

Partnerships: Formation and Operation

Accounting for Legal Reorganizations and Liquidations

Financial Reporting and the Securities and Exchange Commission

Worldwide Accounting Diversity and International Accounting Standards

Translation of Foreign Currency Financial Statements

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Segment and Interim Reporting

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements Intra-Entity Asset Transactions

Consolidated Financial Statements and Outside Ownership

Consolidations - Subsequent to the Date of Acquisition

Consolidation of Financial Information

The Equity Method of Accounting for Investments

Filters

Exam 17: Accounting for State and Local Governments, Part II

All of the following about tax abatement agreements must be disclosed by state and local governments except:

How is the Statement of Cash Flows for Proprietary Funds similar and dissimilar to a Statement of Cash Flows for a for-profit business?

The Town of Portsmouth has at the beginning of the year a $213,000 Net Position balance, and a $52,000 Fund Balance.The following information relates to the activities within the Town of Portsmouth for the year of 2021. Prepare a Statement of Net Position at December 31, 2021.

What is meant by the term fiscally independent?

The Town of Portsmouth has at the beginning of the year a $213,000 Net Position balance, and a $52,000 Fund Balance.The following information relates to the activities within the Town of Portsmouth for the year of 2021. Prepare a Statement of Activities for the year ended December 31, 2021.

Which criteria must be met to be considered a special purpose government?(1.) Have a separately elected governing body.(2.) Be legally independent.(3.) Be fiscally independent.

Over the years, four alternatives have been suggested for constructing the financial statements for public colleges and universities. These alternatives include all of the following except:

Which of the following statements regarding Management's Discussion and Analysis is true?

According to the GASB (Governmental Accounting Standards Board), which one of the following is not a criterion for determining whether a government is legally separate?

Which statement is false regarding the government-wide Statement of Net Position?

Which of the following is a financial statement of a proprietary fund?

What three criteria must be met before a governmental unit can elect to not capitalize and therefore not report a work of art or historical treasure as an asset?

Which statement is false regarding the Balance Sheet for Governmental Fund Financial Statements?

What information is required in the financial section of a state or local government's CAFR?

A method of accounting for infrastructure assets that allows the expensing of all maintenance costs each year instead of computing depreciation is called:

What is meant by the term legally independent?

Accounting for Estates and Trusts

Accounting and Reporting for Private Not-For-Profit Organizations

Accounting for State and Local Governments, Part I

Partnerships: Termination and Liquidation

Partnerships: Formation and Operation

Accounting for Legal Reorganizations and Liquidations

Financial Reporting and the Securities and Exchange Commission

Worldwide Accounting Diversity and International Accounting Standards

Translation of Foreign Currency Financial Statements

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Segment and Interim Reporting

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

Consolidated Financial Statements Intra-Entity Asset Transactions

Consolidated Financial Statements and Outside Ownership

Consolidations - Subsequent to the Date of Acquisition

Consolidation of Financial Information

The Equity Method of Accounting for Investments

Filters