Match between columns Premises: Corporate income tax Property tax Motor fuel tax Cigarette taxes Donation made to a government entity Sales taxes Fines and penalties paid to a government entity Liquor taxes Personal income tax

The Answer of Voluntary Nonexchange Transactions and Imposed Nonexchange Revenues is...

Exam 19: An Introduction to Accounting for State and Local Governmental Units

The following are transactions for the city of Clinton. a.Borrowed $100,000 by issuing a one-year,5% note,three months before year-end. b.Accrued interest at year end,but did not pay the interest at year end. c.Charges for services rendered of $2,500 were billed and collected immediately. d.Incurred salary costs of $5,000,unpaid. Required: Analyze the above transactions by using the accounting equation for a governmental fund.

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Question 1

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$\begin{array} { | l | r | r | r | r | } \hline \text { Governmental fund equation } &{ \mathrm { a } } & \mathrm { b } & \mathrm { c } & \mathrm { d } \\\hline \text { Current assets } & + 100,000 & & + 2,500 & \\\hline \text { Current liabilities } & + 100,000 & + 1,250 & & + 5,000 \\\hline \text { Fund balance } & & - 1,250 & + 2,500 & - 5,000 \\\hline\end{array}$

The following are transactions for the city of Salem. a.Incurred salaries of $44,000 to be paid next month. b.Tax bills totaling $500,000 mailed to city residents. c.Paid salaries above. d.Computer equipment received in the amount of $11,000,to be paid in 30 days. Required: Analyze the above transactions by using the accounting equation for a governmental fund.

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Question 2

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$\begin{array} { | l | r | r | r | r | } \hline \text { Governmental fund equation } & \mathrm { a } & \mathrm { b } & \mathrm { c } & \mathrm { d } \\\hline \text { Current assets } & & + 500,000 & - 44,000 & \\\hline \text { Current liabilities } & + 44,000 & & - 44,000 & + 11,000 \\\hline \text { Fund balance } & - 44,000 & + 500,000 & & - 11,000 \\\hline\end{array}$

The following are transactions for the city of Clinton. a.Borrowed $100,000 by issuing a one-year,5% note,three months before year-end. b.Accrued interest at year end,but did not pay the interest at year end. c.Charges for services rendered of $2,500 were billed and collected immediately. d.Incurred salary costs of $5,000,unpaid. Required: Analyze the above transactions by using the accounting equation for a proprietary fund.

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Question 3

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$\begin{array} { | l | c | c | c | c | } \hline{ \text { Proprietary fund equation } } & \text { a } & \text { b } & \text { c } & \text { d } \\\hline \text { Current assets } & + 100,000 & & + 2,500 & \\\hline \text { Noncurrent assets } & & & & \\\hline \text { Current liabilities } & + 100,000 & + 1,250 & & + 5,000 \\\hline \text { Noncurrent liabilities } & & & & \\\hline \text { Net Position } & & - 1,250 & + 2,500 & - 5,000 \\\hline\end{array}$

Identify the fund type of the fund being described. 1.A fund used to account for the external portion of investment pools reported by the sponsoring government. 2.A fund used to account for resources that are legally restricted to use of the earnings only for government programs or activities. 3.A fund used to account for resources used to pay for a new stadium. 4.A fund used to account for local taxes withheld on behalf of another county. 5.A fund used to account for resources used to pay interest on a long-term bond issue. 6.A fund used to account for specific revenues that are restricted in use. 7.A fund used to account for the local swimming pool that is owned by the city and used by residents for a membership fee. 8.A fund used to account for the centralized data processing services of the state government. 9.A fund used to account for all funds except those required to be accounted for in another fund. 10.A fund that accounts for government pension plans if the government is the trustee.

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Question 4

For each of the following transactions that could be introduced to fund the maintenance of the city park,state the type of fund(s)that would be affected.Assume that a capital project fund will be used to handle any long-term improvements or additions to the park. 1.Resources used to make 60 monthly installments on outstanding long-term debt. 2.Implemented a tax on alcohol purchases specifically designated for the park upkeep. 3.A local sports organization that uses the park raises funds and donates the money,stating that the principal may not be spent,but designating earnings to the park upkeep. 4.City council approves the funds from existing resources for the upkeep required in the upcoming year. 5.Resources used only to pay principal and interest of debt outstanding to finance park maintenance.

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Question 5

A comprehensive annual financial report has the following three major sections:

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Question 6

Government business type activities provide services to users for fees that are intended to recover all or a portion of the costs of providing the services.

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Question 7

Government-wide financial statements include a

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Question 8

For each of the following events or transactions,identify the fund or funds that will be affected. 1.A city government provides electricity services to residents for a fee. 2.A printing shop was established to handle the printing needs of a county government. 3.A philanthropist donates $1 million for zoo maintenance,only earnings can be used. 4.A city government collects sales taxes on behalf of the state and for some of its counties and municipalities. 5.Interest is paid on a state government's general obligation bonds.

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Question 9

The following are transactions for the city of Franklin. a.Borrowed $20,000 by issuing a two-year note. b.Purchased equipment for $6,000 cash. c.Licenses for $700 were billed on account. d.Accrued employee salary costs of $7,000. e.Depreciation expense on equipment for year,$1,000. Required: Analyze the above transactions by using the accounting equation for a proprietary fund.

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Question 10

For each of the following events or transactions,identify the type of fund(s)that will be affected. 1.A central purchasing department was established to handle all the purchasing needs of a county government. 2.A county government levies sales taxes restricted as to use for job creation. 3.A county government receives a large contribution specifying that income from the contribution be distributed each year to the county zoo.The principal is to remain intact indefinitely. 4.A city government paid construction costs of $12,000 on city hall building. 5.A city government paid general operating costs.

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Question 11

For government transactions derived tax revenues are recognized when resources should be available when using accrual accounting.

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Question 12

Using the revenue types shown below,match each of the revenue sources to a revenue type.Each revenue type may be used more than once.

Corporate income tax

Voluntary Nonexchange Transactions

Property tax

Imposed Nonexchange Revenues

Motor fuel tax

Derived Tax Revenues

Correct Answer:

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Corporate income tax

Property tax

Motor fuel tax

Cigarette taxes

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Question 13

Government-wide financial statements exclude the

(Multiple Choice)

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Question 14

When examining revenue transactions,which of the following transactions is classified as an exchange transaction?

(Multiple Choice)

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Question 15

The accounting equation for a governmental fund is

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Question 16

The accounting equation for an agency fund is Assets = Liabilities.

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Question 17

Governmental fund financial statements are prepared on the basis of accounting.Proprietary fund financial statements are prepared on the basis of accounting.

(Multiple Choice)

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Question 18

Proprietary funds report revenues and expenses using a modified-accrual basis of accounting.

(True/False)

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Question 19

For each of the following events or transactions,identify the fund or funds that will be affected. 1.A city government charges a fee for the use of the municipal golf course. 2.Interest is paid on state government revenue bonds. 3.A motor pool was established to handle the vehicle needs of a county government. 4.Paid salaries for general governmental employees. 5.Accrued salaries for general governmental employees.

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Question 20

A comprehensive annual financial report has the following three major sections:

Government business type activities provide services to users for fees that are intended to recover all or a portion of the costs of providing the services.

Government-wide financial statements include a

For government transactions derived tax revenues are recognized when resources should be available when using accrual accounting.

Government-wide financial statements exclude the

When examining revenue transactions,which of the following transactions is classified as an exchange transaction?

The accounting equation for a governmental fund is

The accounting equation for an agency fund is Assets = Liabilities.

Governmental fund financial statements are prepared on the basis of accounting.Proprietary fund financial statements are prepared on the basis of accounting.

Proprietary funds report revenues and expenses using a modified-accrual basis of accounting.

Business Combinations

Stock Investments - Investor Accounting and Reporting

An Introduction to Consolidated Financial Statements

Consolidated Techniques and Procedures

Intercompany Profit Transactions - Inventories

Intercompany Profit Transactions - Plant Assets

Intercompany Profit Transactions - Bonds

Consolidations - Changes in Ownership Interests

Indirect and Mutual Holdings

Subsidiary Preferred Stock, consolidated Earnings Per Share, and Consolidated Income Taxation

Consolidation Theories, push-Down Accounting, and Corporate Joint Ventures

Derivatives and Foreign Currency: Concepts and Common Transactions

Accounting for Derivatives and Hedging Activities

Foreign Currency Financial Statements

Segment and Interim Financial Reporting

Partnerships - Formation,operations,and Changes in Ownership Interests

Partnership Liquidation

Corporate Liquidations and Reorganizations

Accounting for State and Local Governmental Units - Governmental Funds

Accounting for State and Local Governmental Units - Proprietary and Fiduciary Funds

Accounting for Not-For-Profit Organizations

Estates and Trusts

Filters

Exam 19: An Introduction to Accounting for State and Local Governmental Units

A comprehensive annual financial report has the following three major sections:

Government business type activities provide services to users for fees that are intended to recover all or a portion of the costs of providing the services.

Government-wide financial statements include a

For government transactions derived tax revenues are recognized when resources should be available when using accrual accounting.

Government-wide financial statements exclude the

When examining revenue transactions,which of the following transactions is classified as an exchange transaction?

The accounting equation for a governmental fund is

The accounting equation for an agency fund is Assets = Liabilities.

Governmental fund financial statements are prepared on the ________ basis of accounting.Proprietary fund financial statements are prepared on the ________ basis of accounting.

Proprietary funds report revenues and expenses using a modified-accrual basis of accounting.

Business Combinations

Stock Investments - Investor Accounting and Reporting

An Introduction to Consolidated Financial Statements

Consolidated Techniques and Procedures

Intercompany Profit Transactions - Inventories

Intercompany Profit Transactions - Plant Assets

Intercompany Profit Transactions - Bonds

Consolidations - Changes in Ownership Interests

Indirect and Mutual Holdings

Subsidiary Preferred Stock, consolidated Earnings Per Share, and Consolidated Income Taxation

Consolidation Theories, push-Down Accounting, and Corporate Joint Ventures

Derivatives and Foreign Currency: Concepts and Common Transactions

Accounting for Derivatives and Hedging Activities

Foreign Currency Financial Statements

Segment and Interim Financial Reporting

Partnerships - Formation,operations,and Changes in Ownership Interests

Partnership Liquidation

Corporate Liquidations and Reorganizations

Accounting for State and Local Governmental Units - Governmental Funds

Accounting for State and Local Governmental Units - Proprietary and Fiduciary Funds

Accounting for Not-For-Profit Organizations

Estates and Trusts

Filters

Governmental fund financial statements are prepared on the basis of accounting.Proprietary fund financial statements are prepared on the basis of accounting.