Exam 4: Accounting for Governmental Operating Activitiesillustrative Transactions and Financial Statements

Using the information below,what amount should be accounted for in a special revenue fund or funds?

The government-wide statement of net assets uses the same measurement focus and basis of accounting used by the General Fund balance sheet.

Which of the following would be considered an internal exchange transaction?

Equipment acquired several years ago by a capital projects fund and reported in the governmental activities statement of net assets at a net book value of $2,000 was sold for $1,000 cash.Journal entries are necessary in the general journals of the

The General Fund received $200,000 in lieu of taxes from the city owned water utility,an enterprise fund.This is an example of a(an)

Which of the following will require a debit to Fund Balance of a governmental fund when operating statement accounts are closed at the end of the year,assuming there are no other financing sources or uses?

When an enterprise fund pays the General Fund an amount in lieu of taxes,the account to be credited in the General Fund is

Cartier Village's capital expenditures during the year ended December 31 included: What amounts should have been recorded in the General Fund and enterprise fund for the increase in equipment during the year ended December 31,assuming the electric utility is accounted for in an enterprise fund?

Which of the following would be reported on the operating statement of a governmental fund?

Under the modified accrual basis of accounting applicable to governmental fund types,revenue from sources such as fines and forfeits is accrued and recorded at net realizable value.

The governmental funds operating statement presents all of the following except

A transfer of General Fund assets to create an internal service fund that is not expected to repay the assets is an example of an interfund transfer.

Whenever a tax or other significant revenue source is authorized by a legislative body to be used for a specified purpose only,a special revenue fund should be established.

On July 1,the first day of its fiscal year,the Town of Eldon levied a $1,000,000 property tax which is payable in full on December 1 of the same year.On September 15,the town decided to borrow $200,000 in 90-day tax anticipation notes to cover operating expenditures until the tax revenues are collected.The journal entry on September 15 to record the issuance of tax anticipation notes will include

All revenue and interfund transfers of the City of Fenton are accounted for on the modified accrual basis.Below is shown a list of Fenton's General Fund transactions of a revenue or transfer nature.State which ones should be recognized by the General Fund as a revenue or interfund transfer in the year of occurrence.If any item is neither a current revenue nor interfund transfer,state the proper treatment for that item. 1)Receipt of money from issue of tax anticipation notes. 2)Charge to a special revenue fund for supplies transferred to it at cost. 3)Collection of current-year property taxes. 4)Collection of prior years' taxes. 5)Receipt of money in prepayment of a property owner's next-year taxes. 6)Collection of taxes applicable to prior year that,due to an assessor's error,had not been recorded as receivable in that year. 7)Receipt of refund on prior year's expenditures. 8)Refund of current year's expenditures. 9)Collection of accounts receivable for charges for services. 10)Collection of taxes that had been written off in prior year.

Interfund transactions that would result in the recognition of revenues,expenditures,or expenses,if one of the parties were external to the government,should be reported as fund revenues,expenditures,or expenses.

Under current GASB standards the revenue from property taxes should be recorded in the amounts collected during the current period.

An interfund transfer should be reported in a governmental fund operating statement as a(an)

To properly account for the receipt of goods or services ordered in a prior fiscal year,it is necessary to know which appropriations were affected when the encumbrance documents were issued.

Which of the following should not be reported as a liability of the General Fund?