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

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. .

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

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

What is meant by the term fiscally independent?

The City of Wetteville has a fiscal year ending June 30. Examine the following transactions for Wetteville: (A.) On 6/5/18, Wetteville opens a new landfill. The engineers estimate that at the end of 10 years the landfill will be full. Estimated costs to close the landfill are currently $3,500,000. (B.) On 6/18/18, Wetteville receives a donation of a vintage railroad steam engine. The engine will be put on display at the local town park. A fee will be charged to actually climb up into the engine. The engine has been valued at $500,000. (C.) On 6/30/18, Wetteville estimates that the landfill is 2% filled. -Determine and prepare the journal entries for the City of Wetteville, on the dates mentioned for each lettered item, for the purposes of preparing the government-wide financial statements.

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

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

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

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:

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

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

The City of Wetteville has a fiscal year ending June 30. Examine the following transactions for Wetteville: (A.) On 6/5/18, Wetteville opens a new landfill. The engineers estimate that at the end of 10 years the landfill will be full. Estimated costs to close the landfill are currently $3,500,000. (B.) On 6/18/18, Wetteville receives a donation of a vintage railroad steam engine. The engine will be put on display at the local town park. A fee will be charged to actually climb up into the engine. The engine has been valued at $500,000. (C.) On 6/30/18, Wetteville estimates that the landfill is 2% filled. -Determine and prepare the journal entries for the City of Wetteville, in the general fund, on the dates mentioned for each lettered item, for the purposes of preparing the fund financial statements.

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. -On government-wide financial statements, which of the following are the appropriate amounts to present in the financial statements for 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?

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

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?

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.

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

A method of accounting for infrastructure assets that allows the expensing of all maintenance costs each year instead of computing depreciation is called