Question 1

The General Fund of the City of Plymouth purchased a police car in the amount of $25,000.Which of the following would be true?

Accepted Answer

A)  The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances would report an expenditure of $25,000. 
B)  The government-wide Statement of Activities would report an expense of $25,000. 
C)  Both of the above. 
D)  Neither of the above. 
A)  The General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances would report an expenditure of $25,000. 
B)  The government-wide Statement of Activities would report an expense of $25,000. 
C)  Both of the above. 
D)  Neither of the above. A

Question 2

In its Statement of Net Assets,a government reported:
•assets of $90 million,including $30 million in capital assets (net),and
•liabilities of $40 million,including long-term debt of $15 million,all related to capital asset acquisition.
The government also reported $10 million of net assets were restricted for payment of debt service.The government's unrestricted net assets would be reported as:

Accepted Answer

A)  $15 million. 
B)  $25 million. 
C)  $30 million. 
D)  $35 million. 
A)  $15 million. 
B)  $25 million. 
C)  $30 million. 
D)  $35 million. B

Question 3

With regard to the government-wide statements,list the required statements.

Accepted Answer

The required financial statements are the Statement of Net Assets and the Statement of Activities.

Question 4

The following data applies to the next three questions:
The City of Charlestown levied property taxes in the amount of $9,000,000. It is estimated that 2% will not be collected. The taxes were levied July 1, 2013 for the fiscal year ended June 30, 2014. During the year ended June 30, 2014, $7,900,000 in property taxes were collected from this levy. It is estimated that $620,000 will be collected during the next 60 days, $300,000 will be collected more than 60 days after June 30, 2014, and $180,000 will never be collected.
-How much will the city report as Deferred Property Taxes in its June 30,2014 government-wide Statement of Net Assets?

Accepted Answer

A)  $ 620,000. 
B)  $ 320,000. 
C)  $ 300,000. 
D)  $ 0. 
A)  $ 620,000. 
B)  $ 320,000. 
C)  $ 300,000. 
D)  $ 0.

Question 5

On April 1,2014,a local government issued bonds in the amount of $1,500,000.The bonds were issued at par and carried an interest rate of 5%,payable October 1 and April 1.When moving from the change in fund balances in the governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances to the change in net Assets in the governmental funds column of the Statement of Activities,both for the fiscal year ended June 30,2014,the effect for the interest accrual only would be:

Accepted Answer

A)  An increase of $18,750 
B)  A decrease of $18,750 
C)  A decrease of $37,500 
D)  An increase of $37,500 
A)  An increase of $18,750 
B)  A decrease of $18,750 
C)  A decrease of $37,500 
D)  An increase of $37,500

Question 6

The following data applies to the next three questions:
The City of Charlestown levied property taxes in the amount of $9,000,000. It is estimated that 2% will not be collected. The taxes were levied July 1, 2013 for the fiscal year ended June 30, 2014. During the year ended June 30, 2014, $7,900,000 in property taxes were collected from this levy. It is estimated that $620,000 will be collected during the next 60 days, $300,000 will be collected more than 60 days after June 30, 2014, and $180,000 will never be collected.
-When preparing the government-wide financial statements,how much property tax revenue should be recognized for the year ended June 30,2014?

Accepted Answer

A)  $7,900,000. 
B)  $8,820,000. 
C)  $8,200,000. 
D)  $9,000,000. 
A)  $7,900,000. 
B)  $8,820,000. 
C)  $8,200,000. 
D)  $9,000,000.

Question 7

When using the modified approach to record infrastructure,expenditures to widen a 2-lane road to 4-lanes would be charged to an expense,in lieu of depreciation.

Accepted Answer

A) True 
 B)False

Question 8

The Statement of Net Assets and Statement of Activities are the only two statements for the government-wide financial statements.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true regarding the government-wide statements?

Accepted Answer

A)  Balances from enterprise funds' statements are entered in the business-type activities sections of the government-wide statements without adjustment. 
B)  Government-wide statements eliminate interfund transactions, within columns. 
C)  Both of the above. 
D)  Neither of the above. 
A)  Balances from enterprise funds' statements are entered in the business-type activities sections of the government-wide statements without adjustment. 
B)  Government-wide statements eliminate interfund transactions, within columns. 
C)  Both of the above. 
D)  Neither of the above.

Question 10

With regard to the government-wide statements,distinguish between program revenues and general revenues.List three examples of each.What is the difference in reporting between program revenues and general revenues?

Accepted Answer

Program revenues are those that are asso

Question 11

The difference between assets and liabilities in the government-wide statements is called Net Assets.

Accepted Answer

A) True 
 B)False

Question 12

A government reported an Other Financing Source in the amount of $600,000 related to the sale of land in its governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances.The land had a cost of $150,000.The adjustment in the reconciliation when moving from the changes in fund balances in the Statement of Revenues,Expenditures,and Changes in Fund Balances to the change in net assets in the Statement of Activities would be:

Accepted Answer

A)  Increase of $150,000. 
B)  Decrease of $150,000. 
C)  Increase of $450,000. 
D)  Decrease of $450,000. 
A)  Increase of $150,000. 
B)  Decrease of $150,000. 
C)  Increase of $450,000. 
D)  Decrease of $450,000.

Question 13

A government reported expenditures for infrastructure as follows: $18 million for improvements and additions; $20 million to extend the life of existing infrastructure; $16 million for general repairs.The cost of its infrastructure,excluding land,is $750 million,and the infrastructure has an estimated life of 50 years,on average.Which of the following would be the reported expense (in millions)under each of the following options?

Accepted Answer

A)  Depreciation Approach: $15; Modified Approach: $36 
B)  Depreciation Approach: $15; Modified Approach: $31 
C)  Depreciation Approach: $31; Modified Approach: $31 
D)  Depreciation Approach: $31; Modified Approach: $36 
A)  Depreciation Approach: $15; Modified Approach: $36 
B)  Depreciation Approach: $15; Modified Approach: $31 
C)  Depreciation Approach: $31; Modified Approach: $31 
D)  Depreciation Approach: $31; Modified Approach: $36

Question 14

When preparing the government-wide statements,no entry is required to record depreciation expense on general capital assets

Accepted Answer

A) True 
 B)False

Question 15

Government-wide financial statements are prepared using the accrual basis of accounting

Accepted Answer

A) True 
 B)False

Question 16

With respect to government-wide statement,which of the following statements is correct?

Accepted Answer

A)  GASB requires a reconciliation from proprietary fund financial statements to the government-wide statements business-activities columns from modified accrual accounting to accrual accounting. 
B)  General capital assets should not be reported as assets in governmental funds but should be reported in the governmental activities column of the government-wide statement of net assets. 
C)  In addition to the fund basis statement, GASB Statement 34 requires government-wide statements that are prepared on the modified accrual basis using the economic resources measurement focus. 
D)  Fiduciary activities are reported in the government-wide statements in a separate column. 
A)  GASB requires a reconciliation from proprietary fund financial statements to the government-wide statements business-activities columns from modified accrual accounting to accrual accounting. 
B)  General capital assets should not be reported as assets in governmental funds but should be reported in the governmental activities column of the government-wide statement of net assets. 
C)  In addition to the fund basis statement, GASB Statement 34 requires government-wide statements that are prepared on the modified accrual basis using the economic resources measurement focus. 
D)  Fiduciary activities are reported in the government-wide statements in a separate column.

Question 17

Debt margin is the difference between the amount of debt limit outstanding and the amount of indebtedness allowed by law.

Accepted Answer

A) True 
 B)False

Question 18

GASB requires a reconciliation from governmental fund financial statements to the government-wide statements governmental-activities columns from modified accrual accounting to accrual accounting.

Accepted Answer

A) True 
 B)False

Question 19

GASB standards require a reconciliation from fund financial statements to government-wide financial statements.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following situations would be unlikely to result in the recognition of an asset impairment?

Accepted Answer

A)  A city warehouse is damaged by fire. 
B)  Recently purchased city-owned voting booths are rendered obsolete by a federal law requiring a new technology. 
C)  Ridership on city buses declines. 
D)  Construction on a municipal sports complex stops when the city's major league baseball team moves to another city. 
A)  A city warehouse is damaged by fire. 
B)  Recently purchased city-owned voting booths are rendered obsolete by a federal law requiring a new technology. 
C)  Ridership on city buses declines. 
D)  Construction on a municipal sports complex stops when the city's major league baseball team moves to another city.

The General Fund of the City of Plymouth purchased a police car in the amount of $25,000.Which of the following would be true?

With regard to the government-wide statements,list the required statements.

When using the modified approach to record infrastructure,expenditures to widen a 2-lane road to 4-lanes would be charged to an expense,in lieu of depreciation.

The Statement of Net Assets and Statement of Activities are the only two statements for the government-wide financial statements.

Which of the following is true regarding the government-wide statements?

With regard to the government-wide statements,distinguish between program revenues and general revenues.List three examples of each.What is the difference in reporting between program revenues and general revenues?

The difference between assets and liabilities in the government-wide statements is called Net Assets.

When preparing the government-wide statements,no entry is required to record depreciation expense on general capital assets

Government-wide financial statements are prepared using the accrual basis of accounting

With respect to government-wide statement,which of the following statements is correct?

Debt margin is the difference between the amount of debt limit outstanding and the amount of indebtedness allowed by law.

GASB requires a reconciliation from governmental fund financial statements to the government-wide statements governmental-activities columns from modified accrual accounting to accrual accounting.

GASB standards require a reconciliation from fund financial statements to government-wide financial statements.

Which of the following situations would be unlikely to result in the recognition of an asset impairment?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

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Exam 8: Government-Wide Statements, Capital Assets, Long-Term Debt

The General Fund of the City of Plymouth purchased a police car in the amount of $25,000.Which of the following would be true?

With regard to the government-wide statements,list the required statements.

When using the modified approach to record infrastructure,expenditures to widen a 2-lane road to 4-lanes would be charged to an expense,in lieu of depreciation.

The Statement of Net Assets and Statement of Activities are the only two statements for the government-wide financial statements.

Which of the following is true regarding the government-wide statements?

With regard to the government-wide statements,distinguish between program revenues and general revenues.List three examples of each.What is the difference in reporting between program revenues and general revenues?

The difference between assets and liabilities in the government-wide statements is called Net Assets.

When preparing the government-wide statements,no entry is required to record depreciation expense on general capital assets

Government-wide financial statements are prepared using the accrual basis of accounting

With respect to government-wide statement,which of the following statements is correct?

Debt margin is the difference between the amount of debt limit outstanding and the amount of indebtedness allowed by law.

GASB requires a reconciliation from governmental fund financial statements to the government-wide statements governmental-activities columns from modified accrual accounting to accrual accounting.

GASB standards require a reconciliation from fund financial statements to government-wide financial statements.

Which of the following situations would be unlikely to result in the recognition of an asset impairment?

Introduction to Accounting and Financial Reporting for Governmental and Not-For-Profit Organizations

Overview of Financial Reporting for State and Local Governments

Modified Accrual Accounting: Including the Role of Fund Balances and Budgetary Authority

Accounting for the General and Special Revenue Funds

Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent

Proprietary Funds

Fiduciary Trustfunds

Accounting for Special-Purpose Entities, Including Public Colleges and Universities

Accounting for Private Not-For-Profit Organizations

College and University Accounting Private Institutions

Accounting for Hospitals and Other Health Care Providers

Auditing, Tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters