Exam 17: Accounting for State and Local Governments, Part II

A local government's basic financial statements would include a statement of cash flows for all

Which one of the following is a criterion for identifying a primary government?

Which of the following is a financial statement of a proprietary fund?

The City of Kamen maintains a collection of paintings of a former citizen in its City Hall building. During the year, one painting was purchased by the city for $2,000 at an auction using appropriated funds in the General Fund. Also during the year, a donation of a painting valued at $3,000 was made to the city. -Prepare the journal entry/entries for the two transactions for the purposes of preparing the governmental fund financial statements.

The modified approach to accounting for infrastructure assets may be utilized by a state or local government if:

Which of the following is true regarding Management's Discussion and Analysis (MD&A)?

What is meant by the term legally independent?

What information is required in the financial section of a state or local government's CAFR?

The Town of Wakefield opened a solid waste landfill in 2017 that was at 20% capacity on December 31, 2017 and at 50% capacity on December 31, 2018. The city initially anticipated closure costs of $2.3 million but in 2018 revised the estimate of the closure costs to be $2.7 million. None of these costs will be incurred until the landfill is scheduled to be closed. -Prepare the journal entry that should be recorded on December 31, 2018 for government-wide financial statements. .

Which statement is false regarding the Balance Sheet for Governmental Fund Financial Statements?

What is meant by the term fiscally independent?

Which item is not included on the government-wide Statement of Activities?

The Town of Wakefield opened a solid waste landfill in 2017 that was at 20% capacity on December 31, 2017 and at 50% capacity on December 31, 2018. The city initially anticipated closure costs of $2.3 million but in 2018 revised the estimate of the closure costs to be $2.7 million. None of these costs will be incurred until the landfill is scheduled to be closed. -Assuming the landfill is recorded within the General fund, how would the landfill information be represented in the governmental fund financial statements at December 31, 2018?

How is the Statement of Cash Flows for Proprietary Funds similar and dissimilar to a Statement of Cash Flows for a for-profit business?

Use the following to answer questions 24 and 25: A city starts a solid waste landfill during 2017. When the landfill was opened the city estimated that it would fill to capacity within 5 years and that the cost to cover the facility would be $1.5 million which will not be paid until the facility is closed. At the end of 2017, the facility was 20% full, and at the end of 2018 the facility was 45% full. [QUESTION] -On government-wide financial statements, which of the following are the appropriate amounts to present in the financial statements for 2018?

The Town of Conway opened a solid waste landfill in 1995 that is filled to capacity in the current year.The city initially anticipated closure costs of $2 million.These costs were not expected to be incurred until the landfill was closed.What is the final journal entry to record these costs assuming the estimated $2 million closure costs were properly recorded and the landfill is accounted for in an enterprise fund?

Use the following to answer questions 24 and 25: A city starts a solid waste landfill during 2017. When the landfill was opened the city estimated that it would fill to capacity within 5 years and that the cost to cover the facility would be $1.5 million which will not be paid until the facility is closed. At the end of 2017, the facility was 20% full, and at the end of 2018 the facility was 45% full. [QUESTION] -If the landfill is judged to be a governmental fund, what liability is reported on the fund financial statements at the end of 2018?

What three criteria must be met to identify a governmental unit as a primary government?

The City of Nextville operates a motor pool serving all city-owned vehicles.The motor pool bought a new garage by paying $29,000 in cash and signing a note with the local bank for $280,000.Subsequently, the motor pool performed work for the police department at a cost of $17,000, which had not yet been collected.Depreciation on the garage amounted to $20,000.The first $12,000 payment made on the note included $4,800 in interest. Required: Prepare the journal entries for these transactions that are necessary to prepare government-wide financial statements.

The city operates a public swimming pool where each person is assessed a $2 entrance fee.Which financial statement is most appropriate to report these revenues?