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

The parking garage and parking lots owned by the City of Danton reported the following balances for 2018: Required: Prepare the appropriate financial statement for the fund that was used to account for parking operations.

Which of the following is a section of the financial section of the comprehensive annual financial report (CAFR) of a state or local government? (1) Management's discussion and analysis (MD&A). (2) Required supplementary information (other than MD&A). (3)) Basic financial statements and notes to financial statements.

Which of the following is not a step in reporting a pension liability?

Which statement is false regarding the Statement of Revenues, Expenditures, and Other Changes in Fund Balance when it is included with government-wide financial statements?

What are the three broad sections of a state or local government's CAFR?

Which of the following statements regarding Management's Discussion and Analysis is true?

Jones College, a public institution of higher education, must prepare financial statements

For the purpose of government-wide financial statements, the cost of cleaning up a government-owned landfill and closing the landfill

Over the years, four alternatives have been suggested for constructing the financial statements for public colleges and universities.These alternatives include all of the following except:

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 government-wide financial statements.

Which information must be disclosed regarding tax abatement agreements? i) The purpose of the tax abatement program. ii. The dollar amount of abatement and the names of recipients. iii. The type of tax being abated.

What is the highest level of authoritative rules for state and local government accounting?

What are the three broad sections of a state or local government's CAFR?

What three criteria must be met before a governmental unit can elect to not capitalize and therefore report a work of art or historical treasure as an asset?

According to the GASB (Governmental Accounting Standards Board), which one of the following is not a criterion for determining whether a government is legally separate?

Which criteria must be met to be considered a special purpose government? (1.) Have a separately elected governing body (2)) Be legally independent (3)) Be fiscally independent

All of the following about tax abatement agreements must be disclosed by state and local governments except:

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

All of the following are true about the modified approach to infrastructure depreciation except:

Drye Township has received a donation of a rare painting worth $1,000,000.For Drye's government-wide financial statements, three criteria must be met before Drye can opt not to recognize the painting as an asset.Which of the following is not one of the three criteria? (1.) The painting is held for public exhibition, education, or research in furtherance of public service, rather than financial gain. (2)) The painting is scheduled to be sold immediately at auction. (3)) The painting is protected, kept unencumbered, cared for, and preserved.