Exam 4: Accounting for Governmental Operating Activities–Illustrative Transactions and Financial Statements

The Town of Loveland levied property taxes in the amount of $1,600,000. The town estimates that 1 percent will be uncollectible. The journal entry to record the tax levy will include

Why might the property tax revenue in a given year differ between the governmental funds statement of revenues, expenditures, and changes in fund balances and the governmental activities column of the statement of activities?

The county received a $10,000,000 endowment, the terms of which indicate that earnings on the endowment are to be used by health and welfare to provide medical services to low-income children. Where would the $10,000,000 be recorded?

The account Deferred Inflows of Resources-Unavailable Revenues is used in governmental funds to record  

An interfund transfer in should be reported in a governmental fund operating statement as a(an):

The Governmental Activities column of the statement of net position includes financial information for all funds of a government.

Which of the following should not be reported on the balance sheet of the General Fund?

Which of the following would be reported on the operating statement of a governmental fund?

Some governments choose to sell the collection rights to unpaid property taxes in tax lien public auctions and therefore will not have property tax balances reported within the financial statements.

The General Fund used electricity provided by the city-owned electric utility (an enterprise fund of the city). The governmental activities journal entry to record the transaction will include:

A contribution was received by the city for the purchase of playground equipment. The contribution would not be recognized as revenue by the permanent fund until the playground equipment has been purchased.

The receipt of equipment that had previously been ordered should be recorded in the General Fund as a debit to

A tourist tax that is restricted for use on maintenance projects in the historic downtown district should always be recorded as general revenues in the governmental activities journal.

Whenever a significant revenue source is restricted for a specific operating purpose, a special revenue fund should be established.

Which of the following assets would appropriately be reported on the governmental funds balance sheet?

The following is a pre-closing trial balance for Sun City's General Fund as of June 30, 2020:  What is the fund balance as of June 30, 2020, after all closing entries have been made?

Cartier Village's capital expenditures during the year ended December 31 included: What amounts should have been recorded in the General Fund and the governmental activities journal for the increase in the equipment account during the year ended December 31?

A properly prepared schedule of revenues, expenditures, and changes in fund balances-budget and actual will include which of the following columns?

A payment made by a city-owned utility to the General Fund of the city in lieu of taxes is an example of a transaction that is recorded in the governmental activities journal.

When a fire truck purchased from General Fund revenues is received, what account, if any, should have been debited in the General Fund?