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

A government reported,in its government-wide Statement of Net Assets: In addition,$4 million of cash was restricted for payment of debt service.The government's unrestricted net assets would be reported as:

Enterprise funds are reported in the business-type activities column of the government-wide statements.

When preparing the government-wide statements,worksheet entries must be made to add the balances of the fiduciary funds.

Debt limit is a measure of effective leverage for enterprise activities.

A local government recorded the payment of bond principal by debiting Expenditure: Bond principal and crediting cash.What is the worksheet entry when preparing the government-wide statements?

When using the modified approach to account for infrastructures,expenditures to extend the life of the infrastructure assets are expensed.

A government reported the following transfers in its governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances: (1)a transfer from the General Fund to a special revenue fund in the amount of $400,000; (2)a transfer from the General Fund to an internal service fund in the amount of $300,000; (3)a transfer from the General Fund to a permanent fund in the amount of $200,000.The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be:

To qualify as a collection,a donated or purchased item must meet all of the following conditions except:

A government had the following transfers reported in its governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances: (1)a transfer from the General Fund to a debt service fund in the amount of $l,100,000; (2)a transfer from the General Fund to an enterprise fund in the amount of $1,300,000; and (3)a transfer from the General Fund to an internal service fund in the amount of $500,000.The amount that would be shown as a transfer out in the governmental activities column in the Statement of Activities would be:

A government reported an other financing source in the amount of $900,000 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 $340,000.The amount that would be reported in the government-wide Statement of Activities would be:

Governments may choose either to depreciate infrastructure assets or use the modified approach.

The following entries were in the governmental funds. Required: Part A.What is the worksheet entry required to adjust beginning net assets in the 12/31/2012 government-wide financial statements for long term debt? Part B.What are the worksheet entries to adjust for current year activity in long-term debt for the year ended 12/31/2012? Assume interest for the year is due on 12/31 and the bond premium is amortized on the straight line basis.

Which of the following is not a reconciliation required by GASB?

When are the entries to convert modified-accrual statements to accrual statements posted in the individual fund general ledgers?

Which of the following is not true regarding infrastructure assets?

If an Internal Service Fund has positive operating income,the worksheet entry to add the Internal Service Fund to governmental activities would include a:

Under which of the following circumstances would an asset be considered impaired?

The difference between assets and liabilities in the government-wide statements is called net equity.

An asset may be considered impaired if either the decline in the service utility is unexpected or the amount of the decline in service utility is large.

What would be the appropriate journal entry to adjust to the accrual basis of accounting for depreciation in prior years?