Question 1

Which of the following situations would probably not result in 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.

Question 2

Internal service funds primarily serve governmental departments; therefore they are incorporated into the governmental activities category of the government-wide statements.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following items are added to government-wide financial statements through worksheet journal entries?

Accepted Answer

A)  General Fixed Assets. 
B)  General Long Term Debt. 
C)  Internal Service. 
D)  All of the above. 
A)  General Fixed Assets. 
B)  General Long Term Debt. 
C)  Internal Service. 
D)  All of the above.

Question 4

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 5

Assume a government reported $300,000 in capital outlay expenditures in the governmental fund Statement of Revenues,Expenditures,and Changes in Fund Balances.Secondly,assume depreciation of capital assets amounted to $250,000,in the governmental activities column in the Statement of Activities.Those adjustments would cause a decrease of $50,000 when preparing the reconciliation between the change in governmental fund balances to the change in net assets of governmental activities in the Statement of Activities.

Accepted Answer

A) True 
 B)False

Question 6

Worksheet entries are used to convert modified accrual statements to accrual.

Accepted Answer

A) True 
 B)False

Question 7

In its government-wide Statement of Net Assets,a government reported assets of $150 million,including $50 million in capital assets (net of depreciation),and liabilities of $80 million,including long-term debt of $60 million,$40 million of which was issued to acquire capital assets.In addition,$30 million was restricted for debt service and other purposes.The government's unrestricted net assets would be reported as:

Accepted Answer

A)  $80 million. 
B)  $50 million. 
C)  $40 million. 
D)  $30 million. 
A)  $80 million. 
B)  $50 million. 
C)  $40 million. 
D)  $30 million.

Question 8

When preparing the government-wide financial statements,how much property tax revenue should be recognized for the year ended June 30,2012?

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

GASB Statement No.37 specifically requires interest during construction in governments' funds to be capitalized in the government-wide statements.

Accepted Answer

A) True 
 B)False

Question 11

Debt limit is the total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any time.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is not correct with respect to the preparation of government-wide statements?

Accepted Answer

A)  A worksheet entry is required to record depreciation expense on capital assets. 
B)  Enterprise funds are reported in the business-type activities column of the government-wide statements. 
C)  Worksheet entries must be made to eliminate operating profits earned by enterprise funds. 
D)  A worksheet entry is required to eliminate the charge to expenditures for capital outlay and record those expenditures as capital assets, as is required for accrual accounting. 
A)  A worksheet entry is required to record depreciation expense on capital assets. 
B)  Enterprise funds are reported in the business-type activities column of the government-wide statements. 
C)  Worksheet entries must be made to eliminate operating profits earned by enterprise funds. 
D)  A worksheet entry is required to eliminate the charge to expenditures for capital outlay and record those expenditures as capital assets, as is required for accrual accounting.

Question 13

The difference between assets and liabilities in the government-wide statements is called_________.

Accepted Answer

A)  Net Assets. 
B)  Fund Balance. 
C)  Net Equity. 
D)  Accrued Equity. 
A)  Net Assets. 
B)  Fund Balance. 
C)  Net Equity. 
D)  Accrued Equity.

Question 14

The following balances exist at year end within the governmental activities of a government unit:
Transfers In:
150,000
Transfers Out:
120,000
When compiling the government-wide financial statements,the journal entry to eliminate the transfer activity will include:

Accepted Answer

A)  A debit of $120,000 to Transfers In 
B)  A debit of $30,000 to Transfers In 
C)  A debit of $120,000 to Transfers Out 
D)  None of the above 
A)  A debit of $120,000 to Transfers In 
B)  A debit of $30,000 to Transfers In 
C)  A debit of $120,000 to Transfers Out 
D)  None of the above

Question 15

Debt limit is the percentage of governmental activities legally allowed to be financed by debt.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

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

Question 17

When preparing the government-wide statements,a worksheet entry is required to eliminate the charge to expenditures for capital outlay and record those expenditures as capital assets,as is required for accrual accounting.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true regarding worksheet entries?

Accepted Answer

A)  Worksheet entries are not posted to the general ledger (they are not booked). 
B)  Since depreciation is recorded in the general fixed asset account group, no worksheet entry for depreciation is necessary. 
C)  Interfund activities within governmental activities do not need to be eliminated in a worksheet entry. 
D)  Worksheet entries are necessary for enterprise activities. 
A)  Worksheet entries are not posted to the general ledger (they are not booked). 
B)  Since depreciation is recorded in the general fixed asset account group, no worksheet entry for depreciation is necessary. 
C)  Interfund activities within governmental activities do not need to be eliminated in a worksheet entry. 
D)  Worksheet entries are necessary for enterprise activities.

Question 19

The total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any time is known as:

Accepted Answer

A)  Debt margin. 
B)  Debt limit. 
C)  Borrowing power. 
D)  Maximum debt. 
A)  Debt margin. 
B)  Debt limit. 
C)  Borrowing power. 
D)  Maximum debt.

Question 20

Governments must capitalize infrastructure assets under GASB Statement 34.

Accepted Answer

A) True 
 B)False

Which of the following situations would probably not result in an asset impairment?

Internal service funds primarily serve governmental departments; therefore they are incorporated into the governmental activities category of the government-wide statements.

Which of the following items are added to government-wide financial statements through worksheet journal entries?

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.

Worksheet entries are used to convert modified accrual statements to accrual.

When preparing the government-wide financial statements,how much property tax revenue should be recognized for the year ended June 30,2012?

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

GASB Statement No.37 specifically requires interest during construction in governments' funds to be capitalized in the government-wide statements.

Debt limit is the total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any time.

Which of the following statements is not correct with respect to the preparation of government-wide statements?

The difference between assets and liabilities in the government-wide statements is called_________.

The following balances exist at year end within the governmental activities of a government unit: Transfers In: 150,000 Transfers Out: 120,000 When compiling the government-wide financial statements,the journal entry to eliminate the transfer activity will include:

Debt limit is the percentage of governmental activities legally allowed to be financed by debt.

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

When preparing the government-wide statements,a worksheet entry is required to eliminate the charge to expenditures for capital outlay and record those expenditures as capital assets,as is required for accrual accounting.

Which of the following is true regarding worksheet entries?

The total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any time is known as:

Governments must capitalize infrastructure assets under GASB Statement 34.

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

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters

Exam 8: Government-Wide Statements, capital Assets, long-Term Debt

Which of the following situations would probably not result in an asset impairment?

Internal service funds primarily serve governmental departments; therefore they are incorporated into the governmental activities category of the government-wide statements.

Which of the following items are added to government-wide financial statements through worksheet journal entries?

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.

Worksheet entries are used to convert modified accrual statements to accrual.

When preparing the government-wide financial statements,how much property tax revenue should be recognized for the year ended June 30,2012?

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

GASB Statement No.37 specifically requires interest during construction in governments' funds to be capitalized in the government-wide statements.

Debt limit is the total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any time.

Which of the following statements is not correct with respect to the preparation of government-wide statements?

The difference between assets and liabilities in the government-wide statements is called_________.

The following balances exist at year end within the governmental activities of a government unit: Transfers In: 150,000 Transfers Out: 120,000 When compiling the government-wide financial statements,the journal entry to eliminate the transfer activity will include:

Debt limit is the percentage of governmental activities legally allowed to be financed by debt.

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

When preparing the government-wide statements,a worksheet entry is required to eliminate the charge to expenditures for capital outlay and record those expenditures as capital assets,as is required for accrual accounting.

Which of the following is true regarding worksheet entries?

The total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any time is known as:

Governments must capitalize infrastructure assets under GASB Statement 34.

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

Advanced Topics for State and Local Governments

Accounting for Private Not-For-Profit Organizations

College and University Accounting

Accounting for Hospitals and Other Health Care Providers

Auditing, tax-Exempt Organizations, and Evaluating Performance

Financial Reporting by the Federal Government

Filters