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

GASB requires that general fixed assets be included in the government-wide financial statements.These assets are usually acquired through General,special revenue or capital projects funds.

A donated collection is not required to be capitalized.If a government decides not to capitalize them,how will they be accounted for at the time of the donation?

When an asset is sold during the year,the proceeds from the sale which was listed as an "other financing source" is eliminated and the gain or loss is recorded when preparing the government-wide statements.

Debt margin is the difference between the amount of debt limit calculated as prescribed by law and the net amount of outstanding indebtedness subject to limitation.

What conditions must be satisfied in order to use the modified approach for recording infrastructure?

The governmental funds report a total of $2,000,000 Transfers In and $1,500,000 Transfers Out.To consolidate governmental activities what amount will be eliminated from the Transfers In and Transfers Out accounts?

A local government purchased a building and recorded the event by debiting Expenditures - Capital Outlay and crediting Cash.What would be the worksheet entry to prepare the government-wide statements?

GASB does not require that "collections" be capitalized and depreciated.

Internal service funds primarily serve governmental departments; therefore they are not incorporated into the business-type activities category of the government-wide statements.

A government incurred expenses for its infrastructure as follows: $20 million for general repairs; $15 million to extend the life for existing infrastructure; and $18 million for additions and betterments.The government chooses to use the modified approach to record infrastructure.The infrastructure has a basis of $400 million and would be depreciated over a 40 year life,if depreciation were charged.The amount that would be shown as expense in the Statement of Activities would be:

An example of a program revenue in the government-wide Statement of Activities would be motor fuel taxes dedicated to street repairs.

Which of the following would not be an adjustment for long-term debt when preparing government-wide financial statements?

Debt limit is the amount of funds legally required to be set aside to pay outstanding debt.

Governmental fund-basis statements are prepared using the________,and must be converted to the ________ to be incorporated in the government-wide statements.

Which of the following statements is not correct?

A government reported an "other financing source" in the amount of $750,000,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 $275,000.The adjustment in the reconciliation,when moving from the governmental Funds Statement of Revenues,Expenditures,and Changes in Fund Balances to the change in net assets for governmental activities in the Statement of Activities would be a(an):

A governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances reported expenditures for capital outlay in the amount of $5,000,000.Capital assets for that government cost $110,000,000,including $15,000,000 in land.Depreciable assets are amortized over 20 years,on average.The reconciliation from the governmental funds changes in fund balances to the governmental activities change in net assets would reflect a(an):

General long-term debt,to be paid out of resources of the government's taxing power,is not reflected in the governmental fund Balance Sheet but is reflected in the government-wide Statement of Net Assets.

Which of the following would not need to be addressed/adjusted in compiling the government-wide statements?

Fixed assets are not recorded on the governmental fund balance sheets but must be shown on the government-wide financial statements.