Question 1

Which of the following is not a true statement regarding revenues from various types of nonexchange transactions?

Accepted Answer

A) Derived tax revenues occur as a result of sales and or income tax. 
B) Imposed nonexchange revenues consist of only fines and penalties assessed by the governing agency. 
C) Government mandated nonexchange transactions includes grants from the federal government to the local public-school system for a free lunch program. 
D) Voluntary nonexchange transactions can originate from a governmental agency or private citizen organization. 
E) Imposed nonexchange transactions revenue recognition is made in the time period when the resulting resources are required to be used or in the first period in which use is permitted. 
A) Derived tax revenues occur as a result of sales and or income tax. 
B) Imposed nonexchange revenues consist of only fines and penalties assessed by the governing agency. 
C) Government mandated nonexchange transactions includes grants from the federal government to the local public-school system for a free lunch program. 
D) Voluntary nonexchange transactions can originate from a governmental agency or private citizen organization. 
E) Imposed nonexchange transactions revenue recognition is made in the time period when the resulting resources are required to be used or in the first period in which use is permitted.

Question 2

A city received a grant of $5,000,000 from a private agency. The money was to be used to build a new city library. In which fund should the money be recorded for the governmental fund financial statements?

Accepted Answer

A) The General Fund. 
B) An Expendable Trust Fund. 
C) A Capital Projects Fund. 
D) An Agency Fund. 
E) A Permanent Fund. 
A) The General Fund. 
B) An Expendable Trust Fund. 
C) A Capital Projects Fund. 
D) An Agency Fund. 
E) A Permanent Fund.

Question 3

The board of commissioners of the city of Scranton adopted a general fund budget for the year ending June 30, 2021, which indicated tax levy revenues of $1,500,000, bond proceeds of $650,000, appropriations for government operations of $1,360,000, and operating transfers out of $425,000.Required:If this budget was formally integrated into the accounting records used to produce the governmental fund financial statements, what was the required journal entry at the beginning of the year?

Accepted Answer

The answer of The board of commissioners of the city...

Question 4

Which statement is not correct?

Accepted Answer

A) Governmental funds account for expenditures of financial resources rather than matching revenues and expenses. 
B) The Encumbrances Outstanding account should be reversed and closed at the end of a fiscal year. 
C) Revenues from licenses and permit fees are recognized when received in cash if using the modified accrual basis of accounting for governmental funds. 
D) A fund is an independent accounting entity composed of cash and other financial resources, segregated for the purpose of carrying on specific activities and objectives. 
E) Commitments for purchase orders are recorded as expenses. 
A) Governmental funds account for expenditures of financial resources rather than matching revenues and expenses. 
B) The Encumbrances Outstanding account should be reversed and closed at the end of a fiscal year. 
C) Revenues from licenses and permit fees are recognized when received in cash if using the modified accrual basis of accounting for governmental funds. 
D) A fund is an independent accounting entity composed of cash and other financial resources, segregated for the purpose of carrying on specific activities and objectives. 
E) Commitments for purchase orders are recorded as expenses.

Question 5

What is the purpose of government-wide financial statements?

Accepted Answer

Government-wide financial statements pre

Question 6

On July 1, 2021, Carbondale City ordered $1,800 of office supplies. They were to be paid for out of the general fund.Required:(A)What journal entry was required for the governmental fund financial statements?(B)What journal entry was required for the government-wide financial statements?

Accepted Answer

(A)For the governmental fund financial s

Question 7

Under modified accrual accounting, revenues should be recognized when they are

Accepted Answer

A) Collected. 
B) Realizable and estimable. 
C) Reasonably estimable. 
D) Measurable and available to be used. 
E) Earned and collected. 
A) Collected. 
B) Realizable and estimable. 
C) Reasonably estimable. 
D) Measurable and available to be used. 
E) Earned and collected.

Question 8

Which of the following funds is most likely created with an endowed gift?

Accepted Answer

A) Enterprise Fund. 
B) Internal Service Fund. 
C) Debt Service Fund. 
D) Capital Projects Fund. 
E) Permanent Fund. 
A) Enterprise Fund. 
B) Internal Service Fund. 
C) Debt Service Fund. 
D) Capital Projects Fund. 
E) Permanent Fund.

Question 9

Which group of government financial statements reports all revenues and all costs as well as all assets and liabilities of the governmental entity?

Accepted Answer

A) GAAP-based Financial Statements. 
B) Fund financial Statements. 
C) Governmental fund financial statements. 
D) Government-wide financial statements. 
E) General fund financial statements. 
A) GAAP-based Financial Statements. 
B) Fund financial Statements. 
C) Governmental fund financial statements. 
D) Government-wide financial statements. 
E) General fund financial statements.

Question 10

Annual budgets must be recorded within:

Accepted Answer

A) The general fund and special revenue funds. 
B) Capital projects funds and debt service funds. 
C) Enterprise funds and internal service funds. 
D) The general fund and pension trust Fund. 
E) Agency funds and the general fund. 
A) The general fund and special revenue funds. 
B) Capital projects funds and debt service funds. 
C) Enterprise funds and internal service funds. 
D) The general fund and pension trust Fund. 
E) Agency funds and the general fund.

Question 11

When should property taxes be recognized under modified accrual accounting?

Accepted Answer

Property taxes should be recognized unde

Question 12

For governmental entities, the accrual basis of accounting is used for:

Accepted Answer

A) Special revenue funds. 
B) Internal service funds. 
C) Debt service funds. 
D) The general fund. 
E) Capital projects funds. 
A) Special revenue funds. 
B) Internal service funds. 
C) Debt service funds. 
D) The general fund. 
E) Capital projects funds.

Question 13

Bassett City issues bonds in the amount of $750,000 to finance the construction of a sidewalk in a specific neighborhood. Repayment of the bonds will be derived from a special assessment on the owners in the neighborhood. The government accepts legal obligation for the construction of the sidewalk. Total interest on the bonds will total $37,500 and will be repaid at the time of repayment of the bonds.Required:Prepare the journal entries to record each of the items below in preparation for (A)the government-wide financial statements and (B)the governmental fund financial statements. For the governmental fund financial statements, include the fund type in which the entry is recorded. Prepare all entries for (A)and all entries for (B)separately.Journal entries to record:1)Issuance of the bonds.2)Payment to the contractor.3)The special assessment by the city on the neighborhood residents.4)The assessment collection by the city.5)Payment of the debt on the special assessment bonds.

Accepted Answer

The answer of Bassett City issues bonds in the amount...

Question 14

A $6,000,000 bond is issued by Kensington City to build a new hospital and the proceeds of the bond are received directly by the fund that will be disbursing the monies for the hospital construction.Required:Prepare the journal entry to record the bond issue and identify the fund in which the entry is recorded.

Accepted Answer

In Capital

Question 15

Salaries and wages that have been earned by governmental employees that have not yet been paid are recorded in the general fund as:

Accepted Answer

A) An expenditure. 
B) An encumbrance. 
C) An appropriation. 
D) An expense. 
E) An investment. 
A) An expenditure. 
B) An encumbrance. 
C) An appropriation. 
D) An expense. 
E) An investment.

Question 16

On January 1, 2021, Kenneth City purchased office supplies for $50,000. During the year, $42,000 of these supplies were used.Required:Record the journal entries for these transactions using the consumption method. (Disregard the encumbrance entries.)

Accepted Answer

The answer of On January 1, 2021, Kenneth City purchased...

Question 17

Which statement most accurately reflects property taxes?

Accepted Answer

A) Property taxes are derived tax revenues because property owners have the benefit of ownership. 
B) Property taxes are considered a special assessment by the governing agency. 
C) When recording property taxes, the receivable is recorded and the revenue is recognized when the government has an enforceable legal claim. 
D) When recording property taxes, the revenue is recognized in the period in which it can be used. 
E) Property taxes are the result of the government making an assessment, only when an underlying exchange has occurred. 
A) Property taxes are derived tax revenues because property owners have the benefit of ownership. 
B) Property taxes are considered a special assessment by the governing agency. 
C) When recording property taxes, the receivable is recorded and the revenue is recognized when the government has an enforceable legal claim. 
D) When recording property taxes, the revenue is recognized in the period in which it can be used. 
E) Property taxes are the result of the government making an assessment, only when an underlying exchange has occurred.

Question 18

Fiduciary funds are

Accepted Answer

A) Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. 
B) Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations. 
C) Funds used to account for monies held by the government in a trustee or agency capacity. 
D) Funds used to account for all financial resources except those required to be accounted for in another fund. 
E) Funds used to account for resources that are restricted or committed for a specific purpose other than debt payments or capital projects. 
A) Funds used to account for the activities of a government that are carried out primarily to provide services to citizens. 
B) Funds used to account for a government's ongoing organizations and activities that are similar to those operated by for-profit organizations. 
C) Funds used to account for monies held by the government in a trustee or agency capacity. 
D) Funds used to account for all financial resources except those required to be accounted for in another fund. 
E) Funds used to account for resources that are restricted or committed for a specific purpose other than debt payments or capital projects.

Question 19

The City of Grisham collected $19,000 from parking meters that must be transferred to the county government in the next thirty days.Required:For fund financial statements, prepare the journal entry for the collection of the $19,000 from parking meters, including the fund type in which the entry would have been recorded.

Accepted Answer

The answer of The City of Grisham collected $19,000 from...

Question 20

What is the purpose of fund financial statements?

Accepted Answer

The purpose of the fund financ

Which of the following is not a true statement regarding revenues from various types of nonexchange transactions?

A city received a grant of $5,000,000 from a private agency. The money was to be used to build a new city library. In which fund should the money be recorded for the governmental fund financial statements?

Which statement is not correct?

What is the purpose of government-wide financial statements?

On July 1, 2021, Carbondale City ordered $1,800 of office supplies. They were to be paid for out of the general fund.Required:(A)What journal entry was required for the governmental fund financial statements?(B)What journal entry was required for the government-wide financial statements?

Under modified accrual accounting, revenues should be recognized when they are

Which of the following funds is most likely created with an endowed gift?

Which group of government financial statements reports all revenues and all costs as well as all assets and liabilities of the governmental entity?

Annual budgets must be recorded within:

When should property taxes be recognized under modified accrual accounting?

For governmental entities, the accrual basis of accounting is used for:

Salaries and wages that have been earned by governmental employees that have not yet been paid are recorded in the general fund as:

On January 1, 2021, Kenneth City purchased office supplies for $50,000. During the year, $42,000 of these supplies were used.Required:Record the journal entries for these transactions using the consumption method. (Disregard the encumbrance entries.)

Which statement most accurately reflects property taxes?

Fiduciary funds are

What is the purpose of fund financial statements?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidationssubsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

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

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments Part 2

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Exam 11: Accounting for State and Local Governments Part 1

Which of the following is not a true statement regarding revenues from various types of nonexchange transactions?

A city received a grant of $5,000,000 from a private agency. The money was to be used to build a new city library. In which fund should the money be recorded for the governmental fund financial statements?

Which statement is not correct?

What is the purpose of government-wide financial statements?

On July 1, 2021, Carbondale City ordered $1,800 of office supplies. They were to be paid for out of the general fund.Required:(A)What journal entry was required for the governmental fund financial statements?(B)What journal entry was required for the government-wide financial statements?

Under modified accrual accounting, revenues should be recognized when they are

Which of the following funds is most likely created with an endowed gift?

Which group of government financial statements reports all revenues and all costs as well as all assets and liabilities of the governmental entity?

Annual budgets must be recorded within:

When should property taxes be recognized under modified accrual accounting?

For governmental entities, the accrual basis of accounting is used for:

Salaries and wages that have been earned by governmental employees that have not yet been paid are recorded in the general fund as:

On January 1, 2021, Kenneth City purchased office supplies for $50,000. During the year, $42,000 of these supplies were used.Required:Record the journal entries for these transactions using the consumption method. (Disregard the encumbrance entries.)

Which statement most accurately reflects property taxes?

Fiduciary funds are

What is the purpose of fund financial statements?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidationssubsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements Intra-Entity Asset Transactions

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

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments Part 2

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